That is incorrect. If OPK is trading at $5.00 the day of the close, Prolor shareholder's will get .9951 of a $5.00 stock. the $7.00 will be meaningless at that point because you will not be able to sell your freshly minted OPK share for more than the price OPK is trading at. If the deal were done right now and you had 10,000 shares of Prolor, you would get 9951 shares of OPK and they would be worth $6.66 period. Doing the math from the $7.00, you have already lost almost $4,000 of the original value of your shares. (10,000*$7.00 - 9,951*$6.66)
My statement was not incorrect. At the time of Opko's aquisition the share price was $7.03 share. The value of the deal is $480 million, and Opko will pay $7.00 per share for Prolor's stock. The deal is expected to close in the second half of 2013, subject to certain conditions including the approval of stockholders of both companies and other customary closing conditions.
Why try to short against a billionare who will create a company better then TEVA. Just buy PBTH and hold. You will be rewarded!