Tommy Hilfiger: another black eye for public shareholders

News that the 'Private' Equity owner of Tommy Hilfiger has decided to flip the company for a tidy profit is bad news for the public shareholders who sold the company in 2006. We do not quarrel with the decisions of some - and the majority - of the erstwhile owners but this is another confirmation that 'SELLER BEWARE' should be written in block capitals on any offer to buy out the shareholders in a listed public company. All-too-often the process does not really reflect the long-term value of the company and rides roughshod over the philosophy of listing a company in the first place. As share prices fluctuate they will invariably most of the time deviate from the 'true value' of the company. This should not be an invitation for short-term speculators to take advantage of the situation. Holding the shares of a business should be a long-term commitment and dissolving the company should only be done in extremis, with the support of the overwhelming number of shareholders and after a price-finding process that does not favor a bidder (be it another company, a 'private' equity firm or management)