These guys are literally betting that it'll go up 100% to that mythical $77. If they actually believed HALF this amount was going to happen, they'd be buying until it reached $50-60. Instead, we see Goldman Sachs saying that $30 is their sell price.
A dollar in the hand is worth a LOT of imaginary gambling dollars.
This can only be described as political/ideological or a huge gamble that Musk would come back with an even bigger offer rather than walk away. Neither of these seem to be in the best interest of shareholders.
I don't think investors are totally rational, but here's a simplified example. If you think there's a 90% chance that a stock price will triple and a 10% chance that it will drop to zero, you could resist a takeover bid and still not want to put all of your money into it.
If you're gambling with your stock, under what circumstances would you not take a massive 20% ROI and turn it over into a new stock?
In my opinion, the real reason behind the board's decision is ideological. If Someone with their ideology made the same offer, I'd bet big that they'd be announcing their acceptance and talking about the bright future for the company.
Screwing your shareholders over for ideology would not sit well with a jury. I'd love for them to go to discovery over this and see what the board REALLY said.
A dollar in the hand is worth a LOT of imaginary gambling dollars.
This can only be described as political/ideological or a huge gamble that Musk would come back with an even bigger offer rather than walk away. Neither of these seem to be in the best interest of shareholders.