my father who passed away has 1000 shares of ngt purchased in 2006. This is a bit confusing to me and my broker does not know much. Would you sell now on the open market - or tender the shares - how good is new company? - it's scares me the dividend is so high- or wait and get the $20.00 +.95 by doing nothing. What i am unclear about is you can get 21.12 now as oppose to 20.95 later. If I do not tender what is the advantage of not selling now? - interest etc.?
Understand that the tender is not for cash. You would be provided with shares, and it may only be for maybe have of your shares. For simplicity, sell, or ride it out. The difference will not be great. If the difference were great, you would see it reflected in the price.
For a little gain, take the tender offer if you don;t minding holding some ECT.
The fees that your broker charges you could play into the picture. You may have a voluntary tender offer fee. If the funds are distributed, there may be a reorganization fee. Your broker may not have these fees for you. It varies.
Rudfox thanks for your reply. I have decided not to tender my shares for ECT. I am a bit Leary of a company whose dividend yields over 15%. Just looking for the pros/cons of either selling NGT now or waiting until June and getting the 20.00 + .95 . If I wait would I be entitled to the interest, royalties and cash liquidation payments like I received last march? Are there commissions other fees for waiting?
Anonymous advice is rarely to be trusted. However, the market behavior in these two securities suggests skepticism is warranted. Depending upon your commission schedule, selling NGT here would at least garner a slight premium to the termination value @20.95. But its hardly worth selling and the market seems to be valuing the certainty of a cash payout over the future value of the swap into ECT.