What to think ?I have read through all the recent NR from both JDO and CBU and didn't find any problems with the deal the two companies are working on.
A) On June 1st, JDO has reconfirmed what they had announced on May 23rd they are proceeding with the acquisition of CBU
B) JDO announced it agreed to sell the company's North Ferrier assets for $33.9 million to fund the acquisition of CBU. The deal is scheduled to close June 8.
C) The court has granted the extension for both companies to negotiate the deal and likely be available on Thursday June 14, 2007 at 1:30 p.m. for the conclusions of the proceedings.
D) Caribou announced June 1st they were to enter into negotiations with JED Oil Inc. ("JED") in respect of JED's offer to Caribou dated May 23, 2007 (the "JED Offer") and the Plan of Arrangement transaction contemplated therein.
I didn't have any contact with the companies for further explanations since as far as I could read and cross-check the informations, it seems to me things are in synch for a deal to happen.
So, what to think of the fact CBU trades at about 40-50% discount per the 10-1 CBU/JDO ratio that would normally means we should be close to $0.22 - $0.23 ??? I just can guess people prefer to wait on the sideline for a confirmation of the completion of JDO's assets sale which I expect to be released somewhere around June 8th...or and of course, the true test, i.e. the results of the proceeding no later than at hearing on June 14th...
Draw your own conclusions - I did and added to day as I surely think this is an opportunity to accumulate at the current level...
GLTA
MY1