I believe when the deal was announced that ILA was trading above $4.50. It dropped after the announcement it was being acquired. So the premium being paid was really insignificant based on where the ILA price was when the deal was announced, IMO. To really evaluate this deal you need to understand the value of ILA's generating assets, and customer base. It has a contiguous regulated territory to GXP. ILA's institutional investors think the deal is too cheap, but that is just based on market price. I think this is a good deal for GXP, and in the long run will modestly benefit its' shareholders.
In my experience, the buying company always pays more than the current stock price to include some assumed future appreciation of the company being purchased. A few cents more per share than current market price would not seem out of the ordinary to me.
Has fonzo told you about the "ladies" in his "investment club" They are actually his sex slaves. We learned all about it on the ILA board . Please be careful and not let this happen to you .
The reason the Green boys are selling out is to get away from fonzo . They felt that they had to assign someone to track his negativity . Whenever they did this , the employee would resign . Personnel turnover got to be too much for them .
Accounting 101 Today Thursday Feb 15. Apparent offer for ILA. Aquila. Reported as $1.80 cash for ILA . .plus 0.0856 GXP stock.(31.75 /todays market value) By our calc's Indicates a price for ILA of $4.61 Market price today for ILA is only $4.20 Difference $0.41.PREMIUM ..being paid by GXP WHY.???? Is there something wrong here.?? Strange.