I read the prospectus for CNSL shareholders to vote on the upcoming merger with SureWest. It sure does not look like it is a great deal for CNSL. CNSL's consultant valuation for SureWest said the value CNSL was getting was from the tax benefits and the assumed synergies they can wring out of the merger.
SureWest shareholders win big, with the big buyout price now, but CNSL shareholders pay big, and then have to wait until who knows when to benefit from the merger. I voted (admittedly probably fruitlessly) "No" on the merger proposal.
The very high interest rates on the notes CNSL is issuing is another sign the bankers think the deal is risky. More risk equals higher interest rates they need to charge.
Yep, I agree, not sure why but never any activity. I added to my shares yesterday, but feel that we will get more opportunities this summer, with this shaky market. Till then, I don't mind collecting the dividends.
Is there something that has been reported recently that would cause such a decline? I can't find anything. It is puzzling that comments are rarely made about this stock in the message board while a similar stock (Frontier Communications) is flooded with comments. Perhaps, Frontier's being such a dog has made it popular??? Hopefully, this stock will not follow a similar fate. I got out of that dog long ago. Hope I don't have to dump this one, the dividends and price action have been good to me over the years.
Before purchase CNSL had only it's history to evaluate..much more of a known quantity. Merge/buy adds whole new levels of uncertainty..I read this is what change in ratings is all about. I am on the fence but down major and recovery seems highly unlikely in the near future. Ten years of dividends are not going to recover my losses. Think I am heading for the door..or as they say on the "Shark Tank"...I'm Out.
Not to mention Fairpoint, ALSK.
Seems that 11% in today's rate environment suggests the big money folks feel this is VERY risky. Given the price movement lately, sounds like many folks (other than us average suckers) had some advance warnings.
Actually, it doesn't look so bad. Bunch of if's. and "The stable outlook reflects the relative predictability of the
company's overall base of business, at least through mid-2013." Looks like the dividend will continue until the if's are known. Not exactly that bad, just uncertain down the road. Depends how the merger goes.