Shareholders oppose Amazon Audible bid

<p>The Internet has been full of grumbling from small shareholders over the $11.50 per share price being paid by Amazon for Audible, reports <em>Publishers Weekly</em>, and last Friday Red Oak Partners, which has a 1.4% stake in Audible, released a letter it sent to both parties criticising the price as being too low.</p><p>Among the reasons Red Oak cited for believing that the bid undervalued Audible was Audible&rsquo;s strong fourth quarter, which was released after the bid was announced and which Red Oak said would likely have driven up the offer. Red Oak also criticised the methodology Audible&rsquo;s advisor, Allen &amp; Co, used to value the company, and noted that it believes that as the major player in the spokenword digital download market, Audible has a bright future. </p><p>In a previous report, Audible noted that Allen approached 12 strategic buyers as well as some financial buyers about acquiring the company, but none expressed interest.</p><p>Red Oak said it will not tender its shares, although with most of the larger shareholders backing the acquisition the deal is expected to be approved.&nbsp; </p>