Aware of GULTU since April when Buyside wrote it up. In the current crude oil environment, you are still hopeful? I don't know the details of Freeport's plans to keep exploring but this could all end up worthless. Or am I missing something?
Had a great Christmas and now getting ready for the New Year's party!
MT, yes the SWY CVRs are easier to value. AT, NF any comments on RNA?
SA is full of too many amateurs. Do you get a lot of newbies there? Wondering there is a way to create private chat area by invitation only.
Can you clarify what "when deal is finalized" means? I thought deal was finalized and we were all going to get paid soon. Why dump the shares now?
MT, don't know where to congregate now so posting here. Have you looked into the RNA buyout by BMRN? Trying to figure out CVR valuation. Currently trading a dollar above cash portion. CVR valuation is key - thinking NPV of around $2 or more.
The property is 700 S Battleground Ave, Grover, NC 28073. Hope they sell it soon and stop slow leakage of money and time value.
Here is the wording:
" On October 22, 2014, a meeting of the Board was held, at which representatives of Morgan Stanley and Skadden were present. At the meeting, Mr. Dobson provided an update with respect to the contract renewal negotiations with Digital River's largest customer, including a meeting held among representatives of Digital River, Siris and Digital River's largest customer. Mr. Dobson noted that Siris had agreed to forgo insisting that Digital River's contract with the customer be finalized prior to execution of a merger agreement, so long as the "material adverse effect" provision of the merger agreement did not expressly exclude from consideration non-renewal or termination of customer contracts."
MT, I read somewhere that Siris wanted to wait till the MSFT renewal was signed but DRIV insisted on proceeding without the renewal signed. Siris in exchange asked for the removal of carveout of contract non-renewal from the agreement. To me all this points to MSFT non-renewal is a deal breaker (or at least Siris has the option to invoke MAE) and both sides knew it.
Where do you get the $12 figure? Hard to get good data from Yahoo after all the mergers etc. Looks like tangible book value is right around $8 per the Q3 10Q.
I don't think she has read too many merger agreements - the $250M termination fee only applies if CBST backs out. Specific performance is written in for CBST so that MRK can't back out for any price if they get cold feet. Both Zerbaxa FDA approval and Hospira lawsuit outcomes are carved out.
Went in deeper today. Overall market correction must be dragging CBST down. What gives on DRIV? Rumors from MSFT side must be leaking by now.
I bought today for the first time. Didn't like the price action at close. Zerbaxa FDA appvl is due this month. But merger docs also specifically carve out FDA appvl from MAC. Did you read the merger agreement? Looks air tight including specific performance. What do you think is the timing of the tender offer?
I looked into the history of DRIV and in 2009 SYMC cancelled their e-commerce contract with them and brought it in-house. They were a significant customer back then (20%+) and the stock took a beating.
MT, AB69, NFI
Any thoughts on CBST after the drop today? Unlike DRIV, I do believe the rejection of patent extension beyond 2016 is a non issue.
All the more reason not to have entered into a merger agreement BEFORE the renewal with MSFT was finalized. What did they expect - MSFT won't use it as leverage to negotiate harder knowing DRIV folks are now stuck. Don't understand the logic.
Some clarity from the company is in order. Making an 8K filing of this import in the middle of a buyout is bull without an accompanying press release. My own mistake for not reading the prelim carefully on Friday.
Agreed. 8K wording does not sound good. The prelim proxy specifically discusses this scenario and Material Adverse Effect clause specifically does NOT carve out largest customer non renewal. Siris at first had asked for the Microsoft renewal to happen before signing a definitive but was later dropped in exchange for not carving out from MAC.
Wouldn't you believe it - the 70c price increase translates to $89M which is exactly the amount management is going to pay more for buying the wholesale brokerage unit! Just goes to show management was trying to steal the unit from us shareholders until BGC Partners came along. I would rather sell to BGC then the management thieves who should all be thrown out.