OTCPK:TMBMF - Post by User
Comment by
Alphaseeker1984on May 25, 2017 6:25pm
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Post# 26285502
RE:$4.52 is our de facto price now.... (11%+)
RE:$4.52 is our de facto price now.... (11%+)dosperros - unfortunately this deal seems to have limitations on how much stock one can elect to take in exchange so the upside is capped for TMB shareholders at a little over 1/3 of the increase in RYAM shares going forward until the deal closes. Perhaps that is why the investigation has been initiated. I suspect that TMB and RYAM have their bases covered with fairness opinions which have been properly vetted so I am not holding out hope that they bump up the price. IMO the only hope this deal would have of being upped is if another offer were to materialise from another strategic (Sateri, Borregaard, etc...). My guess is that has been explored and it a no go as well...but I would be happy to be wrong.
From the press release:
"These elections are subject to proration to ensure that no more than 63% of the aggregate Tembec shares shall receive the cash consideration and no more than 37% will receive the stock consideration."