you obliviously do not know a lot about the mwe assets. as oil / ngl prices recover, which they are on a slow reversion to the mean as the driver variables improve, watch the cash flow curve of new combined entity
do you have any passive losses to offset cash gain. look at moneyonomics posts on mlp iv board, even in 25% tax bracket npv of escalating distributions is worth more than mwe standalone npv
in mlp board Msg 58745 of 58758 at 12/1/2015 9:22:07 AM by
Ladenberg Thalman covers MPLX
initiates coverage on MPLX with a BUY and price target of $79.00.
just have to let vote fail naturally ie not be in any other merger agreement. if not the case why would MPC raise cash $400 mm
"...The Merger Agreement provides that MWE is required to pay a termination fee to MPLX of $625 million:
if (i) an alternative proposal was publicly proposed or publicly disclosed prior to, and not withdrawn at the time of, the date of the MWE special meeting called for the purpose of approving the Merger Agreement (or, if the MWE special meeting did not occur, prior to the date on which the Merger Agreement was terminated as a result of the failure to consummate the Merger prior to the Outside Date), (ii) the Merger Agreement is terminated by MWE or MPLX (A) as a result of the failure to consummate the Merger prior to the Outside Date or (B) because the Merger Agreement was not approved at the MWE special meeting called for such purpose and (iii) MWE enters into a definitive agreement with respect to, or consummates, any alternative proposal during the 12-month period following the date on which the Merger Agreement is terminated (whether or not such alternative
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proposal is the same alternative proposal referred to in clause (i)); provided, that for purposes of the payment of the termination fee described above, the term “alternative proposal” has the meaning provided under “The Merger Agreement—MWE Unitholder Approval,” except that the references to “25%” will be deemed to be references to “50%”; ...if MWE terminates the Merger Agreement:
because the Merger Agreement was not approved by MWE Common Unitholders at a special meeting of MWE unitholders called for such purpose in a case where an adverse recommendation change has occurred.
why would mwe do that and pay penalty. all they had to do was let vote fail and they would walk away with no penalty. do not not think that is what happened. table was set by fox to say votes were not there, would be my speculation
sure entices those not yet voting to vote yes on merger ie get 1.09 more units plus as of today $3.27 cash and maybe as low as around $3.20 cash at closing. see sardi view on MLP iv board