RE: RE: RE: RE: RE: Anyone talk to management... While it may indicate a potential alternate offer, it may also indicate the relative tax consequences.
PRY is selling below most shareholders' ACB, and thus is a candidate for tax loss selling, STO is selling above most shareholder's ACB and thus has a capital gain for selling, naturally reducing the number of willing sellers.
PRY shareholders are simply selling PRY and buying STO to lock in a loss without exposure to shareprice appreciation in the 30 day "no own" window. Thus selling pressure on PRY, which has low relative strength and buying pressure on STO which has high relative strength, the price differential simply follows to create a premium demanded by STO holders that has to be paid to release stock.
This gap will disappear as we approach deal effective date. Until then STO owners who are not concerned with capital gains could sell STO and immediately buy PRY to maximize the number of shares they will ultimately own.