Investopedia: Georgia Gulf Needs Stronger Housing To Validate Its Independence
It's an open question as to whether corporate executives really take
their duty to shareholders seriously, but that becomes an even more
relevant issue when a potential takeover comes into the picture. Georgia Gulf (NYSE:GGC) management may well be right that Westlake's (NYSE:WLK) buyout
bid undervalued the company's potential, but a great deal of that
potential is tied to both a housing recovery and an improvement in the
company's cost structure.
While the long-term potential value of Georgia Gulf definitely exceeds
the Westlake offer, it may be hard for the company to surpass that offer
in the short term.