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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by sunshine7on Jun 15, 2016 11:03pm
377 Views
Post# 24969784

RE:Brexit and Buyout

RE:Brexit and BuyoutI know it seems like the buyout talks have been going on for months, but it started with the committee formed in April, Auction process closed end of May and now likely down to the short strokes. Weeks is a very short time to conclude a buy out contract, but surprise me. I would like to exit this circus and I know MT would too.
Longboarder wrote:

We will know the result of the Brexit vote by next Thursday night as polls close at 5pm EST.

It seems to me that if the vote is remain all signs point towards an immediate buyout. I beleive that buyers waiting on the sidelines aren't very concerned with the political/regulatory noise regarding pricing, and are simply waiting to see the result of Brexit. They would want to take the company private before the recovery of the pound, strong CXR second qtr, and fading of polical noise drive the stock price up. Although a remain vote would give CXR a big boost even without a buyout, It would also make sense for CXR management to get a fair deal done ASAP after a remain vote. Doing so would allow them to delever immediate value (and a substantial premium) to CXR shareholders and finally free CXR from the short sellers and sp manipulation that have burdened the company for so long. The timing also makes sense seeing as buyout talks have been going on for months, and we all know MT would love nothing more than to get a deal done quickly to burn the shorts.

This is simply my opinion, but I am curious to hear peoples opinions on the following questions:
1) Do you see a major reason why a buyout would not happen following a remain vote?
2) If vote is remain, how soon would you expect a buyout to be announced?
3) If vote is leave, what are the chances of a buyout materializing?
4) Do you think a buyout announcement in the next week (before Brexit) is a possibility?

Sorry for the long post, and thanks in advance to those who actually give useful and intelligent responses. Lastly, I realize that many are sick of the buyout rumours and the damage it has done to sp, but there is no reason not to have an intelligent discussion about the possibility.



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