TSX:AX.PR.E - Post by User
Comment by
babybunnyon Oct 20, 2023 9:54am
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Post# 35692773
RE:RE:On a little more serious note.......
RE:RE:On a little more serious note.......WIshful thinking. In the last couple takeovers that I have been involved in, the company doing the takeover retains a shell of the company it has taken over as a subsidiary and keeps the preferred shares intact. Or they at least threaten to do so, then they offer to convert the old preferreds into new preferreds with the same or similar terms. Depending on the financial strength of the new company vs. the old one, the price of the preferreds could rise or fall. The new company has no obligation whatsoever to redeem the preferred shares.
That all being said, a takevoer of the whole of Artis seems extremely unlikely at least in the remainder of 2023. We minority unitholders would not accept a flimsy offer under duress when there is so much upside. Perhaps after the unit price snaps back to around $10 and institutions regain a healthy appetite for great gobs of real estate, but not now.
Baby Bunny