for what it's worth...it's my opinion BHI won't see the 3.5 billion of a couple of years, tops. This will be litigated in the courts long before HAL forks over a dime!
I'd like to give him some well earned charity of my own - a damned good hiding (free of charge, of course).
and preferably on live TV!
the mkt has spoken...it no longer thinks the merger makes sense. Now sees it as having been a major distraction for both businesses....hence both stocks are now rallying in the belief that the deal is virtually dead.
assuming HAL will fork over the $3.5 billion? If this merger fails, I guarantee both companies will be tied up in litigation for at least a couple of years before they settle. Hence, don't count on the $3.5 billion anytime soon.
they'll reorg under chapter 11 & new shares will be issued to their most senior bond holders. Unfortunately, all the old equity will be cancelled and rendered (worthless).
that's not how it works - once a deal is official, the calls will be cancelled.
their premium = around $4...because $40 a share is the max you are going to get for your stock when the business is broken up & sold!
they can't make money from depositors (except by charging outrageous overdraft fees and other penalties). Their investment banking operations are a disaster - maybe it is time to break them up and return to a traditional banking system? And that would mean reinstating Glass-Steagall?
@lacrosse ~ see my other posts. You appear to be counting on the $3.5 billion cash infusion from HAL to rescue BHI in the event the deal collapses? I don't believe it's gonna be that easy. IMO the resulting fallout will result in litigation spanning several years - and unless crude prices shoot back over $60-70 a barrel anytime soon, BHI is going to need friends like HAL just to survive.
@lacross ~ fair enough point...but what will that actually buy them? BHI is obviously in financial distress. And at this point they need HAL in their corner, more than ever?.
P.S. it's far less costly for HAL to litigate - even over years - than it would be for them to cough up $3.5 billion in one go.
not gonna happen...they'll end up suing each other for years, when this ill-timed merger actually fails - which it will!