Do they really not know any of the details of the deal? It's a far cry from $16 billion. I wish I could ask the authors how I can get my part of the $16 billion my shares should grant me according to them.
The total company is only worth ~46 million. How much of it did ALU own and at what price? Even if they owned the entire company and acquired it at no cost that still amounts to less than $0.02 per share.
This news is not going to make a bit of difference.
Since our shares are ADS through JP Morgan, I was wondering how we go about telling them we don't want to tender them for the Nokia deal. Has anyone looked into how we would do this?
The 3 billion shares doesn't include all of the bondholders that are getting shares of the new company. They were included in the $17 billion number.
The dumb thing is that their customers continually get screwed. The customers were throttled, so the FCC fines AT&T and that fine goes to the FCC, then to pay for the fine AT&T charges a new fee to all of their customers until they raise $100 million. So the customers are screwed twice. AT&T doesn't care, they are just passing the fine on to their customers.
I suggest you both google "Merger Arbitrage" as you don't seem to understand how the price spread during an acquisition works.
Ya, I don't understand this at all. Everything we've been told is "The shift plan is working" and that they would be profitable by next year. How is a profitable company not viable?
The only difference is Clearwire shareholders got lucky and got a second bidder. After management had been telling investors for years that their spectrum alone was worth $15 a share they announce a sale to Sprint for $3.25 and tell investors they are lucky to get that. Dish saved the day for investors by putting in a bid.
I don't see the same thing happening for ALU. If this is really some kind of collusion to screw investors I'm worried that they will do everything possible to book as much of a loss as they can in the next quarter to show everyone how "bad things really are" to try to convince us this horrible deal is in our best interest.
Are you guaranteeing people $4.25 a share? Can I get a copy of that in writing with your signature? Because this deal certainly doesn't guarantee that.
I haven't been following NOK, can you point me to the information that talks about the dilution that is coming? Thanks.
Where do you get "half the sum of the parts"?
If a stock has 1000 shares outstanding and is trading at $10 a share, it has a value of $10000. If they now issue 550 new shares the value of the company hasn't changed, but the number of shares has so $10000 / 1550 = $6.45 per share is the new stock price. However, if like in our case they are giving out those shares in exchange for assets, you have to add those assets to the total value of the company. If those assets are worth $5500 than the total value of the company is now $15500. $15500 / 1550 shares = $10 per share. The stock price did not change from the original company price but the value of the company went up. The dilution offset the value increase.
This is what is happening here. The market is valuing the combination of the two companies to be equal to (or slightly less currently) then the sum of their parts. This is why the deal is so #$%$ for ALU, because unless the market can deduce the outcome of the merger and therefor the value the two companies are going to manage to pull out of the merger, there is no way we are getting more than about $4.40.
Stock offers are supposed to have massive premiums compared to cash offers. What was offered to us is a pile of $|-|17,
If it is a cash offer the price will stay flat at some percentage of the closing price, probably 95%ish of the final price. If the offer is for stock then the price will fluctuate based on normal market conditions. Just wait and see when the closing date will be before you make any decisions.
How do you figure? From what I'm reading he's (or she) is saying, they are saying offer .75 of a NOK share for every ALU share. That would value ALU at $5.99 at current NOK price.
I personally prefer not to say (it would just start an argument anyways) but congrats to all of you! The important thing is that we are all making money! Go ALU!