Sold my entire position at $14, which was large (over 40k shares), simply because the stock is trading like the deal is "done" when in reality it is NOT. CBST basically has a free look at their competition for a 10 million dollar break up fee? Big deal. They can go into the company...Look at Ted in utmost detail plus the finances and operations of the company, and determine if they don't buy the company what the competition could look like in the near future. Can take up to the end of 2013 to do this and then "back out" if they so wish. In the meantime TSRX, thinking a merger is happening, falls behind in their approval and marketing plans Then at the end of the year if the deal falls through, they really will need cash and 10 mil from CBST is not going to do it. And the stock price would fall back likely into the 7's if the deal collapses and raising money at that level would be very dilutive IMHO.
Just be careful gang. Holding the stock for a new buyer or better deal carries risks that it seem like most here really haven't given full credit for. IMHO...Do your own thing and DD, just be careful...The deal is not done until it is done!
BTW 'Heldnova' is in PRAN as well. Hope you put at least a few bucks in it. She's been rocking lately and I only expect that to get better into results...IMO the risk reward here is fantastic.
after reading about pran and watching that first 10 % move early last week sold a little tsrx and got 4k shares pran- still have 15k shres of tsrx-awaiting the arbitrage play but thinking of selling another 1-2 k and putting into pran. Now this technology could beHUGE for ad,hd and pd and I see the risk well worth --maybe I can get the profits there plus a whole lot more that was meant to be from tsrx-- not complaining thank you very much120k for 3 months but feel there like many should have been more.the only problem I see with pran is the $ needed for the phase 3 studies
Both CBST's & TSRX`s SP gained 15% on the takeover announcement with CBST being upgraded to a $70 target. I hardly think the market would have responded this way had this been only a ploy for Cubist to manipulate a lower offer down the road. The deal was a steal for Cubist, notto mention Trius`s management team. The only ones perhaps shorted in this deal where the shareholders, hence the class action suit.
Cubist was desperate to acquire Tedizolid to remain competitive in this space. Theyacted aggressively and beat the bigger players to this opportunity, walking a way with a gold mine for the price of a copper mine. A great deal by Cubist, great for Trius management and basically a 15% pond #$%$ deal for shareholders.
This deal has tentatively been approved by both boards, something Cubist wouldn`t have done had they not been negotiating with Trius long before.
»Too bad you didn`t sell all out at the top of the trade.
Good Luck..the deal has been approved by both the boards and Cubist will formerly provide the offer tender on August 13th...the accretive benefit of this merger is very good for Cubist and they will not let go...Best chance for longs is they may decide to pay upfront the $2 CVR.