Most probably like past deals...the valuation of the deal will be based on the price of PFE at the time of closure. Of course the share ratio will be the same no matter what, but the total valuation of the deal will fluctuate with the price of PFE share price.
I wonder if the Feds will block this inversion, or at least attempt to do so. Big tax revenue to be lost, and no chances the US will reform the tax structure any time soon.
Pfizer shareholders are not getting anything other than a tax bill since shares of Pfizer as we know it will no longer exist as they are "absorbed" by the emerging "new" company. At the time of closing, any gain in share price above one's cost basis will be taxable as such.
After "one time" expenses due to the merger and those associated with downsizing/severances, and the increase in the number of shares, I would not necessarily expect to see a large increase in the EPS. I would guess any benefits from the reduced tax rate will be offset pretty easily.
Advantages to a lower PFE share price in that it makes the buyout price for Allergan lower since it is based on a share ratio. Likewise, I would not expect to see any rise in PFE share price until at least after the deal closes. Time will tell of course, and I am more than happy to be wrong.
I never liked deals like this that are not really based on an actual value of a company but rather the price comparison of two companies. Reminds me of when PFE bought out WYE. The valued the anticipated buyout value of WYE based on the share price of PFE at the time of the announcement. Then over time the share price of PFE declined resulting in a lower buyout price. Although, in this case there is no cash being paid out, so it is all relative based on the exchange ratio; however, I am anticipating the PFE price to decline, and I can see it going under 30 resulting in a lower overall buyout price. Just my opinion of course...BBwwwaahahahaa mmmwwwaahahahaha
I believe your statements to be accurate. PFE as it is today will no longer be in existance, the emerging combined company is deemed to be a new company with its headquarters based out of Europe, and the new cost basis is as you described. .
Well, looks like that was not the reason for delay with yet another extension. Time will tell. I still think PFE is going to make a run to buy them....BBBWWAHAHAHAHAH mmmwwwaahahahaaa They always seem to be part of every rumor...why not one more!
WTH...yeah, makes one wonder especially after the nice earnings report. One step forward, two back it seems. We will see if it rebounds a bit today.
Ahh, that would make sense on the date change. Yeah, it seems like the product is selling, it is a question of if the current funds can cover expenses.
It does not seem to stop the free fall. Tempting to jump in to pick up more at this point. Reminds me of when Lucent was spun off and continued to tank. Likewise, TLN could be viewed as a value for a buyout as was mentioned in other posts out here. I would think the decline is tied into low energy commodity prices. Time will tell...
Change in quarterly report out...must be a deal being finalized and needs an extra day. Maybe Pfizer is buying them. BBBBBWWAHAHHAHAHAAA Well I had to read something into the date change. mmwwaAHHAH
Exactly....Hoping that someone wants to jump on board to be the lead plaintiff...love when they ask if anyone knows anything AKA we got nothings, so provide us info please. lol. I guess they figure if they get one out of 10 to pursue, they can make money. There again it is sad they bog down the system filing these suits that have no basis at the time of filing. Oh well it is America!
This is great...another law suit filed. Now all they need is a lead plaintiff...just a minor detail missing... It never ceases to amaze me that firms continue to flood the legal system with these types of suits. I love the last sentence in the release..." Attorney Advertising. Prior results do not guarantee or predict a similar outcome." BBwwaahaha...I see AZN is buying a company, so I am sure there will be law suits there too no doubt
Overall it does not appear too bad for SPPI...it has been anticipated that there would be a reduction in revenue, so that should not have been a surprise. The pipeline seems to be making progress and is anticipated to backfill lost revenue. The cash position seems decent; although, the debt appears to be getting up there. The share price is approaching the book value. There is nothing at this point in time suggesting that the CRL challenges can't be resolved. Of course it is debatable on how well it is run, but they do seem to be advancing partnerships and expanding the business.
Overall it seems like the downside is limited and there are upside drivers in the not too distant future. With the Merger and acquisitions going on, this might be a decent candidate for a buyout. Time will tell as usual.
Nice...another law suit solicitation....love it. Also love the statement at the bottom of the release that says "This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules." Gee, I wonder if we can get an appearance on Judge Judy to hear this case out?? BBWWwaahahaha MMMWWAAAHHHAAa
Gee, love the basis of the law suit. Anyone who would believe that FDA would approve a product because a CEO suggested that it would get approved should not be investing in biotech. Not saying that the CEO is or is not a bonehead, but give me a break...love these law firms trying to make money on these types of opportunities. Have any of these types of law suits done anything more than jamming the system?? If anything is paid out as part of a settlement, I am sure very little would make it to the average share holder...all to the law firm.