Now we are looking at the big bucks! Where there is smoke....there is a short on fire!
Today's bear raid is a classic for the short side to get covered before the weekend. The bungzinger news was a rouse for a large short to get the position reversed.
$2.6 billion has been cited several times
"ALASKA Air Group Inc. has emerged as the likely winner of an auction for Virgin America Inc., sources said.
Alaska Air is nearing a deal to buy Virgin America, after beating a rival bid for the airline by JetBlue Airways Corp., according to The Wall Street Journal.
There is no guarantee Alaska ultimately will clinch the deal, but if it does, an announcement could come Monday, they added.
Alaska Air is expected to pay upwards of $2.6 billion for Virgin America, which currently has a market value of about $1.5 billion, following a surge sparked by recent news that the company was in play, one of the people said.
Virgin America is 54 per cent-owned by Richard Branson’s Virgin Group Ltd. and New York-based Cyrus Capital Partners LP."
2.6 Billion offer from Alaska
$2,600,000,000 divided by 44,562,939 shares outstanding = $58.34/share
Throw in a JBLU revised bid and we will see $60.00/share? I hope!
I think Reuters speculative numbers are overstated.
$2,000,000,000 divided by 44,562,939 VA shares outstanding = $44.88/share.
The release on Saturday gives JBLU a chance to lift their bid to $2,300,000,000, divided by 44,562,939 VA shares outstanding = $51.62/ share.
Expect a share price of $50 or better before the end of the trading week.