CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

RE:Please explain

[dudsywow]

KETZA wrote: The info is probably somewhere on the board but I don't feel like reading 50 pages to obtain the information. Having said that, I wonder why Canexus is trading so low.

We know the Canexus shareholders voted overwhelmingly to approve the arrangement pursuant to which Superior Plus Corp. ("Superior") will acquire all of the issued and outstanding common shares of Canexus on the basis of 0.153 of a common share of Superior for each Canexus share.

SPB trading near a 52wk low but even at that price it would still mean $1,40. ($9.16 X 0.153)
Are investors expecting shares of SPB to drop further more and are keeping CUS shares below the offer?
Thanks for your input.

This is strictly regulatory risk.  If you believe the deal will get approved, in some form, by the regulators, then the spread will close.  I believe we'll know later this week.