Sorry if this is a dumb question....... in reading all the stuff that came from my broker, I am confused as to the worst case scenario. If I do nothing & the merger goes thru it sounds ok, ie you get the cash just as if you had tendered your shares, only it may take longer. However, if you don't tender your shares & then the merger doesn't go thru then there may not be enough shares to be traded. So then what? How would you sell them or get any money back.
Re: "My letter said they were already at 54%, so it will go through...right?"
I read in the offering, as best I could understand it, that ***a majority of the non-insider 46% ownership has to approve the deal.*** So the insiders' 54% (53% of which is controlled by Harold Simmons) doesn't decide the matter.
I don't understand comment about "merger not going thru and not enough shares to be traded". If merger doesn't go thru, nothing happens except offer is off the table and shares most likely go back into pre-offer range in price, I think. This is a remote possibility. I think the main reason to hold on for now is for tax purposes, to pay cap gains tax for 2012 or 2013 depended on completeion of deal. If any of these thoughts are off please educate me.
I don't know either what I should do and I'm severely under water. Taxes are - unfortunately - not a concern since I'm holding these shares in an IRA account and can't take the loss off my taxes. Now, as I understand it, I have three options:
1) Sell now at whatever price, but currently less than the merger offer; and pay the broker
2) The merger goes thru and the shares will be taken off my hands for $16.50 with no broker fees (?)
3) The merger does not go thru and I'd have to sell on the open market, probably after a price collapse and pay the broker.
If you have any worries at all, you should sell on the open market. The 2 to 3 cents left simply isn't worth the worry, unless you are an arb. Us arbs are paid to worry about it, you aren't. If you want to become an arb, fine, we're a tight knit and friendly fraternity, but your posts suggests that arb isn't in your blood.
Consider selling at today's tax rates and your holiday with your family, not worrying about what arbs worry about. Good luck to you.