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Teva Pharmaceutical Industries Limited Message Board

  • oedd1159 oedd1159 Jun 25, 2013 3:11 PM Flag

    Not related to Teva but interesting

    Sincé most of us are here trying find a profitable trade in wich to invest and also because this is my favorite board i decided to share this information with you.
    I will make the story short, these are the facts :

    1-FIATY AND CNG have signed a merge aggrement in wich the former has pledge to acquire the later in the third quater of 2013.

    2- Kynicos ,thats James Chanos (the great James Chanos) bought CNH at an avrg Price of 41-44 per share.

    3- In order to créate the new Corporation there will be a share distribution of 1 (one share) of the new company for each FIATY share and simultaneously 3,811 Shares of the new company will be given for each CNH share. The conversión rate for the merge should result then in 1X1 to FIATY shareholders and 3.811 X1 to CNH holders.

    4- The current market Prices for FIATY and CNH are absolutely " strange" in my view ,of course if current market prices for FIATY and CNH are 7 and 40 respectively,then you could sell each share of CNH (the gem from James Chanos) and buy 41/7 =5.86 shares of FIATY wich would turn into 5.86 shares of the new corporation . So instead to hold CNH and receive 3.811 you would do better selling it and buying FIATY until the prices ratio convert to 3.81.

    My question if anyone could give me a hint is why this is only partially happening since my take was that FIATY and CNH should be trading at a value close to the convertion rate.

    By the way,Chanos is shorting FIATY .

    Any comment !?


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