RE: RE: Being pumped up for the Short I agree with your comments (though not sure any div cut will be necessary). One only has to look at the fact that AC consistently uses CHR for far more traffic than the contractual minimum to know the importance of CHR to AC.
I think in the meantime CHR may continue to go up, despite the arb concerns, as it tracks the stronger share price of AC. AC stock has now more than tripled from its low, based on strong traffic reports, labour settlements and most recently the pension deal. I also think there is a good chance that AC uses its improved financial position to buyout CHR. This would be essentially a risk-free acquisition for AC (as all of CHR's risk is related to AC), and would provide more flexibility. I suspect AC has dragged the arb process along in order to hold down CHR's share price and pressure CHR's board to do a deal. And CHR probably announced the buyback to have a weapon if CHR goes hostile.
JMHO