While casting about for something interesting for the Friday Afternoon Frolics, I came across this at the at the Business Courier: ABX Air, Red Mountain sign 'standstill' agreement. My first thought was, "What could a "standstill agreement" possibly be?" So I googled the phrase and got this from Wikipedia. Now I get that anybody can post anything they want on Wikipedia, but this seems to be a pretty fair explanation, see 13D filing below. But my real question is this: If I owned stock in ABX Holdings, would I also be permitted to know this so-called non-public information? I would guess not. I went to find out more about ABX here and here. I do not profess to be a securities lawyer, but this information reinforces that old nugget from Bob Dylan, "Money don't talk, it swears." Just read between these lines:
Joe Hete, president and Chief Executive Officer of ABX Holdings, said that “Red Mountain shares our goal of enhancing value for shareholders of ABX Holdings, and has long expressed interest in advising us about operations, strategic direction, capital structure and corporate governance matters that may further our shared objective. This agreement provides a means for them to do so on a fully informed basis. We look forward to wide ranging and open discussions with the principals of Red Mountain.”
BTW, a Form 13D is a required filing by any entity that becomes a 5% holder. This filing must be made at the time (within 10 days) the holder crosses the 5% threshold. Conversely, a
Form 13G is the same form, but used when the person or entity is making the purchase for "investment" only.
Y'all have a good weekend.
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