It is unlikely to be true. Even if it were true, it will have an effective date that allows the existing deals to go through. It is a holiday week in China and the timing of the rumor is suspicious.
Now that QIHU hasn't reported publicly for a year, wait until the big crash comes. Those of you following this #$%$ message board troll are about to see QIHU nosedive.
You are pretty much a con artist. Not one single Broker, Hedge Fund Manager or Investment House has heard anything about QIHU or any other Chinese company delisting from the NASDAQ or NYSE.
The rumor said Chinese stock commission will suspend the oversea stocks from relisting in China. That was why most Chinese stocks related to privatization was affected today. The news also said that no official confirmation so far. The news mentioned QIHU is stopped at foreign exchange stage.
Search 传证监会要暂缓中概股回国借壳陌陌股价应声暴跌to read the news
Let me help you with the currency aspect. In March, the $/CNY exchange rate was 6.55 on 3/1 and 6.45 at end of month. Today, it is 6.51 CNY to the dollar. There is no material change. What are you worried about? The f/x is a non-material issue in the closing of the transaction, which wasn't possible prior to shareholder vote in March and Chinese regulatory approval late last month. This is a holiday week in China, so it is not likely to happen this week anyway.
No need to call people idiots in this process.
What I really don't understand is the currency aspect. They received the cash at the end of March and if not all of it, most of it as that's when it was due, so they just dilly dallied for over 1 month getting approvals and/or whatever else while the currency weakened and it cost them more money? You'd think they were hedged as they took in the cash, otherwise they are extremely stupid considering most believe the RMB will devalue. You're absolutely right, they overstayed their welcome and I do think they are a bit of morons for not having more done prior to the shareholder approval, especially since the super votes would create an absolute situation where the deal would be accepted upon voting. Just a bunch of idiots subjecting us to risk.
QIHU is undervalued and should hold up very well. It could possibly even GO UP if the buyer goes away. Any pullback would be a buying opportunity, indeed. Whether the market will price QIHU a fair multiple is the question. But I have no worries about this investment, with or without a buyout.
Thanks, jinhuac. Yes, it's evident that this is not QIHU specific. The illegal money pool crackdown seems to be unrelated. The drop of RMB is where I'm leaning with this, as all the Chinese merger stocks are affected today.
QIHU has over-stayed its welcome. Any negative news related to relisting and RMB exchange rate will affect it. Also, index funds have plan to swap out QIHU for new members and they may need to sell before the closing.
I tried to search QIHU short interest and found the Nasdaq no long has information on QIHU. I think they check out QIHU before it is ready to go.
If for some crazy reason the offer was rescinded do you think that would be a long term negative? I think the initial reaction would be a sharp pullback but I think that would open up one heck of a buying opportunity. I would love to be able to hold this stock for the long haul. Qihoo 360 is still largely undervalued going forward. With that being said I do agree that this is just chatter and the deal is too large to fall apart at this point.
I don't see any news directly related to QIHU. I found a news about forbidding money pool for investment. Search 基金业协会:严禁资金池业务
The other news is related to drop of RMB and it will make the buyout more costly. Search 人民币中间价报6.5128 两天大跌563点
Good job, wenhai. I now see that QIHU, DATE, and MOMO were all hit this morning, so this is not deal specific. All the China merger stocks were affected. I agree that this scenario should have zero effect on the QIHU deal. This is a large company. Thanks...