You prefer them to sell that many units on the open market?
How much do you think the price would crash if they do that?
As with everything, if you buy in bulk you can get a discount.
Deals are rarely structured in ATM pricing. Pricing was negotiated and apparently NTI general partner felt that a bird in hand was worth more than 200,000 birds in the bush... Strange, but maybe general has better places to place it's dough. Anyway, interesting to see how Western will show this acquisition -- as a separate entity or fully consolidated on their balance sheet. Maybe some accounting types can weigh in on this -- assuming, of course, the rumor is accurate.
All the very best,
If the deal is locked in at close of today, then the price rally action today would be explained. Everyone was expecting a bad earnings so why would everyone want to own it on day of the report. It will be interesting if the deal is done, at what it was priced in at. It will be equally interesting how the market reacts with Western's stock. If the price is $20-$21 then I expect Western will sell off.
When was the last time you heard of a buyout for less than the closing price? Perplexing. I have had one co buyout another with their shares which declined because of a buyout so by default I lost out. Who the heck knows..