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Allis-Chalmers Energy Inc. Comm Message Board

  • Eggplant101 Eggplant101 Dec 13, 2010 1:44 PM Flag

    Okay, why is ALY trading 10% above its deal value?

    Anyone?

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    • This is the first time that I am blind regarding a stock that I own, I have no clue what are they going to do or if they are actually planning to list SEAW in the US. One thing that I know for sure is that my lawyer told me that if something of the sort do happens they are obliged to be list their common stock in the US market in order to allow investors to exchange their share in the same market where the original shares were operating, so let’s hope he is right. I was away for over 4 month due to passing of someone in the family due to a tragedy and I miss selling ALY prior to all this happened.
      The town that we were there was no internet connections for over 40 miles and my laptop was not very helpfull, but if I had seen this coming I would had sold ALY on the first call, but………………..I am down now US5K and some changes and it does sucks, if anyone have more information please let all of us know.

    • I haven't looked closely, but I was under the impression that they would register and list shares of SEAW in the US, so the stock consideration will be tradable by the former ALY shareholders. I don't believe that has happened yet, so arbs wishing to hedge must short SEAW stock trading in Oslo, isn't that right?

    • From August 12th...

      (ALY's press release)--
      >>Under the agreement, Allis-Chalmers stockholders will have the right to elect USD $4.25 in cash or 1.15 Seawell common shares for each share of Allis-Chalmers common stock, subject to proration if more than 35% of the shares elect to receive cash. Shares of Allis-Chalmers' existing preferred stock will be treated as common stock on an as converted basis.

      Based on the closing price of the Seawell common shares on the NOTC on August 12, 2010, the implied acquisition price represents a 28% premium to Allis-Chalmers' six month average stock price and a 77% premium over today's closing price. The merger is conditioned, among other things, on the listing of Seawell on the Oslo Bors or the London Stock Exchange and Seawell raising no less than an additional USD 100 million in equity. The transaction is intended to be tax-free to stockholders of both companies for U.S. federal income tax purposes and will be accounted for as a purchase.>>

    • Demand is recovering quicker than they estimated way back...? Maybe the trade ratio will have to be adjusted before it is voted approved.

 

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