Alterra Power MGMXD

RE:Tendering our Shares

[4PCneanderthal]

One could self tender AXY shares now and might actually acquire more shares of INE rather than wait for the close of the transaction.  The share tender ratio of 0.5563 which is simply $8.25AXY/$14.83INE as stated in the transaction agreement.  Nov 10 closing prices were $7.62AXY and $13.52INE.  The current ratio is then 7.62/13.52 = 0.5636 which is greater than the transaction tender ratio by 1.3% ((5636-5563)/5563).  Of course the current ratio changes constantly.  Assuming 10,000 shares, the gain of shares would be 73 (5636-5563) or $986.96 (73x$13.52 excluding broker cost).  If/as the INE price rises, the arbitrage action will provide additional gain.  If INE is at the price of $14.83(as in the transaction agreement) on the date of the AXY to INE stock exchange, then the additional gain would be ((1483-1352)/1352) 9.7%.  The actual prices of AXY and INE on the date of the finalization of the transaction are actually irrelevant, its the ratio of 0.5563 that matters.
Does this make sense?