How do you come to that conclusion? As I recall, Schiller was very specific that the cash to share consideration wouldn't change from the 65/35 ratio when speaking with analysts because of the proration clause. Also, looking at their AM PR, those that elected mixed compensation will receive $25.35 in cash and 0.584 sh EXXI. At the $21.45 Fri close that's $12.53. $12.53/$37.88 = 33%
Am I missing something?
The EPL transaction was a known event and a reasonably logical next step sans the price itself. I don't think anyone expected it to fall through. Makes no sense to me that the news itself is a negative catalyst. On the slide, some EPL holders may even have initiated shorts that they expect to cover on assignment. Given all the unknowns, they may just want to lock in their tidy profits. I myself sold my EPL to cash out long ago. I owned both and the combined position was too large to justify the risk. I think we might just see downward pressure for a while as EPL holders dump shares that they're assigned. Hope not, but it's not unlikely IMO.