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China Mass Media Corp. Message Board

  • Deal is done. Now comes the interesting part about the pricing of the equity. It will close on the 15th so all the trading days in January will determine the price that is paid. Should be interesting.

    I would expect the prefs to rise and the common to lag until the closing. Brascan has all the incentive to keep the price down and w/ the low volumes on CMM, they should be easily able to do so.

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    • Since the maximum price Brascan will pay is limited to $8.22, Brascan has no incentive to keep the price down. In fact if the price is above $8.22 it would look good for Brascan and Bear Stearns.

      Also the closing has to take place before Jan 15 but can take place any day now between Dec 12 and Jan 15. The interesting thing is that the closing date will not be announced until
      it has occurred, thus the average closing price
      for the prior 10 days can not be manipulated.
      Therefore if the closing takes place in the next few days, the lower closing prices of the past 9 days would benefit Brascan. Now that the deal is confirmed the expected closing prices will be higher than the closing prices over the past week.