GREY:HRIVF - Post by User
Post by
discernon Jun 01, 2010 6:01pm
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Post# 17148275
Troika shares purchased at $0.75
Troika shares purchased at $0.75A new document released today on Sedar states that the Troika shares were purchased for
.75 on May 28th, 2010 for $112 500 000 CAN.
This transaction explains why the sp mysteriously started dipping on May 18th. I would assume that Severstal and Troika had an agreed upon transaction figure of say the five day average closing price, plus x%.
Working backwards, and assuming that the deal was signed off on May 27th, the last four days of closing prices were:
May 26th 0.71
May 25th 0.67
May 21st 0.70
May 20th 0.74
May 19th 0.79
The average for these fiver days? 0.722, so the premium paid by severstal would be 3.9%
If they used the last average of the last 4 days? 0.705 for a premium of 6.4%.
Since it was the long weekend, they probably used five business days that somehow included our Victoria day long weekend.
I realize that Troika was paid well. However, this is a good lesson in how to understand Severstals next move with HRG. Just find out how they will make the most money and that is likely what they will do.