Dollars and Jens
Wednesday, March 21, 2007
 
Bad Managers
Morningstar makes a reasonable case that the management of OSI (Outback Steakhouse) has been working against shareholders' interests in their effort to take the company private, and encourages a vote against the buyout offer. I'm sympathetic, but then what? Do you hope a large investor buys enough shares to put together a new management team? Or do you just go ahead and accept that your managers aren't going to act in your interest? I assume you don't sell at the market price, which is even lower than the buyout offer you're rejecting, unless the goal is to spend money punishing bad management.


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