CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

Takeover metrics from SPB

[rustyblades]

The SPB investor site has a good presentation on the takeover. Page 12 of the presentation shows the deal as being very good for SPB.

Acquisition of Canexus

I'll be voting no although it may not make a difference. Seems to me most of the future upside will be going to the existing SPB shareholders. I'd rather see it go to zero than be taken out for a share exchange at the .153 ratio

[Roxy27]

rustyblades, CUS holders get exchanged at $1.70 per current SPB price, and you get all the upside of the synergies as an SPB shareholder (higher yield, capital growth, better mgm't, more liquid holding). Meanwhile the exisitng SPB shareholders share price has dropped due to the concerns of acquiring an over levered company with a jaded history. This is not bad for you, this is really good. You

[rustyblades]

Roxy The SPB share price has been at around $11 since the end of July so I don't see how the takeover has adversely affected the SPB share price. The secondary issue at $10.35 certainly recovered quickly to $11. Part of my reaction is frustration with the CUS management not following the plan they set out not too long ago. Any ideas on the sze of payouts the CUS management will get if the

[Roxy27]

Rusty, CUS was a giant clusterup.That's in the past so what mgm't gets isn't a concern of mine. Selling to SPB is the smartest thing they've done.   With the SPB deal you're getting SPB at a healthy discount. You won't double your money, not even a 50% return likely, but 20%+ in 1 year including distributions is realistic.  I bought CUS today after already owning

[cadiATS]

All great points !!

[HarryHairy]

Great points !!

[chiefie]

Thanks for your posts Roxy.

[leo101]

so that's why the price is under the superior take out price, the current shareholders might vote no and the price will go back down. Does the  lovely Leslie Lundquist still control tons of shares in her funds? If she does, her votes will carry a lot of weight. I'm thinking it might be worth the gamble at $1.45.