White-Knight
Will A White Knight Step In For Qihoo 360?
Owner: Jay Somaney

Qihoo 360 management team TISI +% has a “go private” offer on the table right now to take the company private at $77 per ADS. Here’s an excerpt from the press release from June 17, 2015 announcing the offer: The company has “received a preliminary non-binding proposal letter, dated June 17, 2015, from Mr. Hongyi […]

Qihoo 360 management team TISI +% has a “go private” offer on the table right now to take the company private at $77 per ADS.

Here’s an excerpt from the press release from June 17, 2015 announcing the offer:

The company has “received a preliminary non-binding proposal letter, dated June 17, 2015, from Mr. Hongyi Zhou, chairman and chief executive officer of the Company, CITIC Securities Co. Ltd. or its affiliates, Golden Brick Capital Private Equity Fund I L.P., China Renaissance Holdings Limited or its affiliates and Sequoia Capital China I, L.P. and/or its affiliates, to acquire all of the outstanding Class A and Class B ordinary shares of the Company not owned by them or their affiliates, including Class A ordinary shares represented by American depositary shares (the “ADSs”, each two representing three Class A ordinary shares), for $51.33 in cash per Class A or Class B ordinary share, or $77.00 in cash per ADS. A copy of the proposal letter is attached hereto as Exhibit A.”

Shares of Qihoo 360 were trading at around $62 per ADS at the time.

Currently the shares are around $64 per ADS.

The window for the management team to close the “go private” offer seems to be fast closing now despite the fact that on September 11, the ADS went down to a ludicrous low of $41 and change per ADS at the height of the “Chinese stocks are untouchable” mania in the West.

Maybe, investors or a white knight or any other Chinese conglomerate on the acquisition trail (Alibaba , Baidu et al) have now seen that the value of Qihoo 360 is far more than the ridiculously low offer of $77 per ADS from the LBO team?

A white knight perhaps, anyone?

(Long QIHU shares and calls)

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