AUGUST 18, 2003
How to lose $8.3m in a morning
Trading in CART stock was lively when the markets opened in New York with the share price tumbling by 31% in the first two and a half hours of trading following the announcement that an offer has been made for the company at $0.50 per share. The shares opened at $1.83 but by 11.30 had fallen to $1.26 as stockholders bailed out of the company to avoid the possibility of having to sell at the bid price if the majority of shareholders vote to accept the offer. The fear is that if the offer is not accepted by the shareholders the company could simply go out of business.
This wiped $8.3m off the value off the company.
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