The long and short of it from 5i, like it or not!
5i Research Answer: Alfa already owns 19% of the company, and the company wants a deal. O'Hara (an investment group) has accumulated 19% and this amount may throw a wrench into a takeover. In addition, the bid is not yet 'official'. There remains risk, and Alfa's debt increases a lot with the acquisition. Combined, these make investors a little gun shy. We think the company 'needs' to be taken over, and the $6.50 will 'probably' succeed. The buyers pool is small, and investors need to keep in mind it has close to $5 billion in debt that also needs to be absorbed in a takeover. We think $6.50 should be viewed as a gift considering how financial troubled the company is.