Enbridge Income Fund Holdings Inc. EBGUF

RE:RE:RE:RE:The ratio was set at .7029

[soundandfury]

TickerTwit wrote: (1) May/16 closing prices: ENF=27.98, ENB=41.80

(2) The offer: 27.98 + 5% = 29.379, rounded to 29.38

(3) Conversion ratio: 29.38/41.80 = .7029. This will not change under the current offer.

(4) The offer was made public and ENF immediately rose to the vicinity of 29.38.

(5) Let's say ENB goes up 10%. ENB is now 41.80*1.10=45.98 and ENF (dragged by the offer's conversion ratio) is now 29.38*1.1=32.32 and the ratio is still .7029. The 5% premium remains in place. Without the 5% premium, the conversion ratio would be 27.98/41.80=.6694.

(6) If you see the two prices diverge significantly from the conversion ratio, it means the market expects the offer to change or be declined.
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soundandfury wrote:
there is no cash value assigned too the ratio........the fact that the ratio gave a small premium to enf closeing price on may 16 means nothing........its the ratio that matters and that does not change no matter what the share price of enb is..........they never offered 29.38 for enf.......the value of enf is now pegged too enb price.....by the ratio