RE:RE:The final deal will be between 4.5259 and 6.958 ACB per CMEDCMED has a lot of things ACB could use. So does HIP. It's a valuable takeover. Read the investor presentations.
If they make a deal I think it will first involve CMED all stock exchange for HIP at 33:1000 ratio. This is already approved by HIP.
And from there the combined entity will be exchanged X:1 ACB shares. X = 4.5 , the previous offer without $24 cap = exactly the number of shares issued on Jan 15th. Too much of a coincidence to ignore.
Also your question about leverage. With a takeover they can erase a potentially very costly lawsuit that could drag on for years witout spending any cash, and aquiring strategic assets in the same pen stroke.
Also the same majority shareholders named in the lawsuit will undoubtedly want to push for this merger to get the lawsuit resolved. There's a lot of common interest to make this go through.
Raguu17 wrote: CMED TODAY is 800m
HIP today is 575m
That is 1.375 billion. Divide this number by what you think is fair for ACB TODAY!! There is your deal.
Your expectations are extreme.
ACB doesn't have to do anything with CMED. They are already up on this venture. CMED is a 7000kg producing company. ACB just landed access to the Italian medical market. CMED went to Detroit.
To achieve your math either CMED is now $90/shr or ACB is $3.
When you go shopping do you always spend the full amount you have to get what you want? What leverage does CMED have? HIP?
ACB wasn't even looking for this deal but now they are going to pay 7 to 1, LOL!