Shareholders rarely get letters from directors containing a general offer to buy their shares at the current market price. What should they do, upon receiving such a letter? I add this item to the pool of shareholders' experiences.
In late 2004 the directors of E Wood (then known as Torday & Carlisle) sent me a letter offering to buy my shares direcrtly off me, thereby saving me any market dealing costs. The price was around 90p. My thoughts at the time? Now, why were the directors taking this unusual step with a share which had been through years of trouble and stagnation? Well, it's rarely true that directors (and just about never true in the case of anyone cold calling you) are offering you 'something for nothing'. But it's far more common that they're willing to go 100 to 0 (or even 150 to -50) on sharing potential gains. So, my reaction was to buy more: I more than doubled my holdings from 2115 to 5035 in January 2005. Result: on 22 March a recommended cash offer of 323p a share was announced.
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