Anyone have access to this article? Here is the summary provided by Google:
"Vectrus continues fight for Afghan contract"
Washington Technology (blog) - 17 hours ago
Vectrus Inc., the former division of Exelis that was spun out in September, is continuing its fight for a $245 million U.S. Army contract to support Afghan army and police facilities in northern Afghanistan. The contract was held by Exelis for about five years, and ...
But you are paying 5.00 for the option, so you are buying the spinco/New ATLS for 5 and it is implied value based on the buyout is 4.47. And there is a 2-1 split, so 4.47 = 8.94 on Tuesday when it starts to trade WI.
There is no deal in the options unless you believe the new ATLS will trade higher than 8.94.
How are you valuing PATI at $100-110 million? Just curious, as that could sell off after the spin and would be nice to some base level of valuation to compare with whatever pricing results.
I looked at the filings, and the problem with the trucking business is all their free cash is spent every year on trucks and parts, very little cash left over on a normalized basis. Too much maintenance cap-ex required to run it, does not appear to be a great biz.