yes gilly could increase his bid to 9.50 or 10....all cash...that would most likely get it done....but if not the deal is done...kto gets rawl...for 9 or 10 or somewhere in between...gilly's only recourse would be to raise his bid...sure he could sell all his shares but so what...kto would just buy them...remember rawl trades in relation to kto now......if kto goes up then rawl will move toward 10...if kto goes down then rawl will move toward 9...thats it....rawl could have been had today for 8.84...are u kidding....worse case you get 16 cents for a couple of months...best case 1.16 or even better a higher bid.....dont let all the noise force you out of your shares...why leave profit on the table...i have bought more and will add again if i can at 8.80-8.85....
Whether that is true or not it will have NO effect on RAWL shares....the stock will be between 9 and 10 at deal's conclussion....unless of course we get a higher bid......where KTO will trade after the RAWL merger is another matter...which i dont know enough to comment on....the market makers are doing a great job of picking up cheap shares the past two days or so...not bad buy at 8.80 and sell at nine or more....they're no dummies
< with all mergers that are solid, people who want to sell do so at the beginning and then most others wait....>
What I'm telling you is not always and not usually. When the deal goes down the acquirers stock usually gets hit for the reasons already mentioned.
Take out the Bull Run sale and only about 1.2 million shares have traded since the news. A lot more than that who might have held RAWL the rest of their lives will now want the money. As much as they can get. Just like you and me.
Let's see what happens right after the 1st when the tax liability will be put off a year. Could get enough selling to put some pressure on price.
Yes this market downtrend may reverse. Yes KTO stock may rise because of ski sales. If someone wants the money rather than the KTO stock the odds favor selling before consumation of the deal rather than after.
gilly WILL NOT RAISE is bid,,,because he didnt do his DD at 8 so what would he get at 9 to 10. it could be overvalued at 8. there is a jungk yard of companies that have gone through like this and in the end shareholders are holding wishes. if you have a profit at this price sell enough shares to recover cost and leave a few for the outcome...thereby you have come out better than bedore gilly. mglotz gilly would wish that kto would buy his shares...but there are legal problems with that in the he is an insider and there are restrictions on selling.."easy to get in..hard to get out"
Not that hard apparently. Bull Run had 2/3 of what Gilly has and they were able to take it out in one fell swoop 12/19. Cost em a little for exiting so quickly, but not terible. Imagine the market maker was glad to have it at the price.
as i said rawl DOESNT trade on its own anymore it mimics KTO stock....so rawl will go up if KTO does or rawl will go down(to 9)if KTO goes down...whatever happens to gilly's shares will not effect the price of RAWL....of course Gilly will probably sell his shares after the merger goes thru which will knock KTO shares down a bunch, but anyone who wants to be out right before the merger can get his 9 or 10 bucks anyhow..buying rawl right now is one of the besr risk-rewards in the market today