GREY:AVNDF - Post by User
Post by
deismanon Feb 03, 2013 7:37pm
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Post# 20931749
Markets view on Merger
Markets view on Merger Everyone knows that the market reacts to mergers before actual announcements are made.
I've done up a chart to display the share value the market has placed on each company in the proposed merger beginning 1 week before the 1st key date.
The key dates here are Nov 27/12 (pre-deal deal), Dec20/12(deal), Jan11/13 (adjustment date) & Feb02/13 (most recent price) This seems to suggest that the market sees a favorable deal for both Charger and Pace and a not so good deal for Avenex.
| The Markets view of who profits from merger |
| | CHX | PCE | AVF |
| 20-Nov | $0.290 | $2.85 | $3.39 |
| 27-Nov | $0.370 | $2.92 | $3.60 |
| 5-Dec | $0.400 | $3.22 | $3.41 |
| 20-Dec | $0.475 | $3.56 | $2.85 |
| 7-Jan | $0.480 | $3.47 | $2.80 |
| 11-Jan | $0.465 | $3.42 | $2.73 |
| 18-Jan | $0.450 | $3.30 | $2.59 |
| 29-Jan | $0.460 | $3.31 | $2.57 |
| 1-Feb | $0.430 | $3.19 | $2.48 |
| Increase or decrease | 48.28% | 11.93% | -26.84% |
| | CHX | PCE | AVF |