GREY:EBGUF - Post by User
Comment by
TickerTwiton May 19, 2018 8:56pm
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Post# 28057354
RE:Once and for all -- the RATIO is the thing
RE:Once and for all -- the RATIO is the thingTwo ways? What about combinations of shares and cash, as when Bell bought out Aliant?
There are many ways to buy something; even between businesses, it's not always just shares and cash. But no matter which way you choose to pay for it, a value must be assigned to the asset being bought before you formulate an offer.
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rk67 wrote:
Ok, there are *TWO* ways to do a buyout. The first way is to say, "We will give you $X per share". Another is to say "We will give you X of our shares for every one of your shares".
We are doing the second. We get 0.7029 ENB shares for each ENF share.
The press release is quite specific. If English isn't your first language (and it's not mine), read it carefully:
ENF shareholders will receive 0.7029 common shares of Enbridge per ENF share
This is crystal clear. "will receive" (not "may receive something close to this number based on a buyout price of $29.38").