Owl on the Branch — Patient Predation

“Couche-Tard management had been making big promises about their next conquest; but they couldn’t deliver the goods. Prudence, Bouchard urged. Patience, Richard Fortin added. “Our logo is an owl,” says Fortin. “We perched on our branch, looked at the numbers, and when we spotted prey that seemed weak enough, we swooped down on it.””

“In the summer of 1996, taking advantage of a drop in Silcorp’s shares, Couche-Tard presented an unsolicited purchase offer of $16.50 per share—the equivalent of $74 million. It was a premium of 26 percent over the previous month’s average stock price. Silcorp’s share price immediately jumped to $17.00: A sign that the market anticipated a higher bid. That expectation was accurate.”