wants to sell their shares wouldn't sell them on the open market instead of tendering them at a lower price. I'm probably not sophisticated enough to understand the logic but it doesn't make any sense to me. Any thoughts or ideas?
Well...this is extremely complicated. If it wasnt, investors wouldnt be bujying SEPTEMBER 65 calls. We all know this could be a drag out court battle. No one wants that. They want Air Products to get a kicker bid on the hop before ARG has a chance to say NO. 68 looks good on a vwap to deal px scenario. Could take till mid 2011...who knows. Hmmmmm. Maybe?Maybe not. All of merger arb has become proinvestors buying out of money calls hoping for a bump deal. At some point the game will change.
They're hoping for a higher offer from APD. the current price is above the current offer because of this speculation.If APD lets the offer expire, the market price would most likely drop back to ~$50/sh.
If they're hoping for a better offer from Air Products wouldn't they be better off if they didn't tender their shares? Why would Air Products increase it's offer if most people tender at a lower price? It still doesn't add up in my mind.