RE: cash portionMy understanding is that each RES shareholder receives a HEI share plus a special return on capital of $2.50. Each RES shareholder has the option of tendering there HEI share for $18. HEI will buy back 27.8 million shares of RES for $18 on a pro-rata basis for. If all RES shareholders tender for $18 it amounts to $3.33 per share.
Quite confusing but in summary if you don't like HEI you take the $2.50 + $3.33 + HEI share. The implied value of the new HEI share is $7.97(based on $13.80) IMO this is excessively low I am a buyer of RES at these levels because even with the merger (which based on the boards sentiment is a worse case scenario) I should still earn a reasonable return.