GREY:CLGRF - Post by User
Post by
mac81on Mar 14, 2016 3:27pm
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Post# 24656868
The Art Of The Deal
The Art Of The DealI am going to try and decipher what has taken place with the proposed take over of CRJ by SSO. Please correct me if I get it wrong. The news release stated that SSO would purchase CRJ for $1.65 per share or 0.185 of a share of SSO as of the close of day March 4/2016. Since then SSO has dropped approximately $1.50 from their share price which includes 0.28 today. CRJ has dropped from a high of $1.57 the day of the announcement to today's share price of $1.33 down 0.05 today. If the deal is approved then would the ratio of 0.185 need to be revised to reflect the drop in value of SSO since the deal was announced? CRJ is guaranteed $1.65 per share regardless of what SSO's share price does between the announcement and the vote. If this is true than there seems to be no reason for CRJ to be losing value as they are guaranteed $1.65 per share. I would expect CRJ to reflect that reality at some point before the vote. I would appreciate any feedback anyone may have.