RE:Crickets chirping
The truth of the matter is that both companies are strong buys IF you believe in the synergistic cost savings. Capitalize those and they are multiples of their current equities. That is the beauty of a good merger. Do you believe those synergistic savings? I do because TPH was the IB working on them. They are not back of napkin and instead probably very detailed. You got employee savings, transportation savings, marketing savings, the list goes on and on. The equities in both these names are a fraction of their enterprise. That is why they barely trade. The debt owns both of these companies. The merger gives both companies a chance to do something for their equity. At the same time, they share a syndicate debt, and therefore the banks are happy too with less risk, higher interest coverage. And that probably means unwinding of doubtful reserves for their defaults. Banks are happy. Unless BNE has a better partner or buyer unsure how you can not be in favor. It is simple, straight forward.