Without exception, every research report I have seen over the past month considers the potential purchase price to be after the $17/share Return of Value with the assumption that the acquirer would be receiving the benefits of the partial retention of the VZW proceeds. Hence, total proceeds would be $17/share plus $120 billion or about another $25/share before the reverse split. Total value to current shareholder is $42/share. However, smalls believes that bid to be inadequate, especially given the retention of some VZW proceeds. Analysts and myself disagree with The Notorious S.M.A.L.L.
The "analyst"(s) being the way off the mark Bienenstock? LOL Keep in mind she had a $25 PT for all of VOD just a few months ago. Also keep in mind I was one of few calling for 130B for VZW sale while VZ was trumpeting a 100B purchase offer...... :-) Who was right on that call? ;-)
120B is an opening offer but low given the amount of proceeds retained from VZW sale. 120B is perfect if VOD didn't retain any proceeds from VZW sale and the net 125B from VZ went straight to shareholders. $42 is rock bottom value with ZERO takeover premium....$47 is okay and $52 is VOD playing hard to get just like they did with VZW sale. VOD well worth the $50-52 given the emerging markets exposure providing growth avenues for decades to come.