TSX:LSG.DB - Post by User
Comment by
bigdaddycashon Oct 24, 2014 6:22pm
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Post# 23059949
RE:RE:RE:Sign me up
RE:RE:RE:Sign me upHow do you arrive at $1.85? Is this just a gross-up (of approx 30%) of the $1.40 conv price?
The debs convert to approx 75MM shares (at $1.40) whereas there are currently 422MM shares outstanding (would be approx 496MM shares incl conv debs but not including exec options and such).
Do the debs have special covenants that could prevent buyout below a desired price?
How would deb holders block a sale?
At $1.50 the cash price would be approx $750MM versus approx $920MM at $1.85 – big difference. I think free cash flow from current ops could support a $1.50 takeout – not sure about $1.85 at this point in time though. IMO, large institutional holder (e.g. Van Eck which reported over 57MM shares on Aug 6) would be tempted by $1.50.
gltals.