Copper prices should eventually respond and edge up.
Apparently data are correct... ARCC closing price of 20.22 on or about 1-Feb-2007, if the yahoo numbers are correct.
Sell all of your ACAS and purchase the depressed ARCC. Since it will take about a year for the deal to close you will at least get 10% dividends from ARCC over that time period. You may end up with a better deal than what is offered!
ACAS is dropping back to $15.69 as I type, sitting up a whopping nine cents for the day, looking past the $17.40 per share payout announced today. That tells me that long-term holders of ACAS are running for the exits, not believing they will actually see that higher number in a timely fashion. Other opinions please.
ACAS has been paying off debt but also giving "management" fat bonuses with no dividends to stockholders. Once the ACAS "management" is gone the major millstone around stockholders' necks will be gone also. As a long-term ACAS owner I see that as a plus for ARCC.
@b.w thanks for your thoughts. I am new to ARCC but this certainly looks like relief from the ACAS "management"!
From seeking alpha: "American Capital (NASDAQ:ACAS) shareholders will receive $6.41 per share in cash plus 0.483 shares of Ares Capital (NASDAQ:ARCC) for each share of ACAS they own - a total of $13.75 per share at current prices. As part of the deal, Ares Management (NYSE:ARES) is providing financial support, will pay $275M in cash, or $1.20 per share to America Capital shareholders, and has agreed to waive up to $100M in fees over the ten quarters following the close."
To investorette... I sadly must agree. The "managers" have shown little regard for the shareholders up to now so I see no reason why they would suddenly show regard.