PPG Executives’ Actions Wave Red Flag – Time To Sell
Previously, in “PPG Shareholders: Beware Of Georgia Gulf Exchange Offer,” I suggested that the confusing, uncertain exchange offer carried risks that warranted saying “No.”
That conclusion may seem questionable when reading PPG’s expectations. The original 7/19/12 press release, in addition to CEO Charles Bunch’s positive observations, stated that, “The transaction is highly complementary to strategic objectives of both companies, with significant potential to enhance value for both PPG and Georgia Gulf (GGC) shareholders.”
However, yesterday (Jan. 21), days away from the exchange offer’s conclusion, we learned that PPG executives sold their shares. CEO Bunch sold 100,000 PPG shares ($13.8 million) and EVP J. Rich Alexander sold 56,800 shares ($7.8 million). Each exercised options on January 16 and sold them the same day, with Alexander adding another 10,000 shares to his sell order.
With that “significant potential to enhance value” right around the corner, why did they sell now? It appears they don’t share the PR optimism…
This article is posted on SeekingAlpha.com