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Crosstex Energy, AŞ Message Board

discoglo79 3 posts  |  Last Activity: Jun 30, 2016 11:58 AM Member since: Mar 5, 2013
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  • Reply to

    $14.35 = $16.99

    by sandyraveon Jun 29, 2016 5:46 PM
    discoglo79 discoglo79 Jun 30, 2016 11:58 AM Flag

    I understand that, but if ACAS were to trade at 16.99 and ARCC at 14.35 any time before mid Sep, I would make a risk less profit by selling ACAS and buying ARCC with a 0.483 ratio of shares.

    That would bring the fmv of ACAS to about 16.81, still well above current value. Clearly, the street is not too convinced this deal will go through...

    We'll have to wait and see....

  • Reply to

    $14.35 = $16.99

    by sandyraveon Jun 29, 2016 5:46 PM
    discoglo79 discoglo79 Jun 30, 2016 10:46 AM Flag

    $16.99 is NOT the fmv. You are forgetting the dividend of 0.38 payable in mid June by ARCC to its shareholders (nothing to ACAS).

    If the deal goes through after mid Dec then we have to consider that dividend also, but ACAS shareholders may get some $, which makes the calcs a little more complicated.

  • Reply to

    Why not buy now?

    by tobypharma Jun 2, 2016 10:55 AM
    discoglo79 discoglo79 Jun 2, 2016 11:42 AM Flag

    How can you say those returns are GUARANTEED? Even if the deal goes through, they will depend on the price of ARCC at the time.