I agree that approvals are not a concern. In the proxy statement there is a provision for a 120 day extension if necessary to put approvals in place. The approvals are not a concern. The banks are not a concern. FIG is the only wild card. Are they thinking they overpaid and will try to get a price cut? I really dont know. A lot of message board posters, with good, well thought arguments, have been both pro and con, on this issue. IMO based on EPS, the deal doesnt appear to have $67 per share value. However if you look at EBITDA, FIG can pay the interest on the debt pretax and still earn a few bucks at todays earnings. If earnings improve, they will make decent money. Although they might have some buyers regret about price, IMO it is still a good deal and the downside to walking in reputation and money would lead us to think the deal gets done. Pay your money take your chances.
Wasn't it FIG and the rest who were the ones who decided on the $67 buy-out price and NOT PENN????I don't see how they can then say "we want to lower the offer"??????HOWEVER< even if they did such, I don't think they would be able to go below $61 ???????!!!!!!! wboyce3
i disagree. after CCU the banks will have to fund. There are many large holders including Peterbilt Carlino who will sue for performance. Lazard also has a stake in the deal. They will be paid 20 million if the deal goes through. The issue is FIG and the 200 million walkaway fee. Too much money at stake for banks to weasal out of deal completely. Price cut maybe. Walkaway by FIG a big maybe. not funding-----expensive unwinnable lawsuit for Wachovia and Deutsche banks.