RE:RE:RE:RE:RE:RE:RE:ALA.R fer mecommonsense9 wrote:
Suppose tommorow it was announced they had agreements that would effectively mean they would clear all regulatory hrdles for the merger. Would the virtual certainty of merger being completed cause ALA to go up or down?
When the WGL acquistion was first announced early this year stock price
dropped from around $34--$35 to $30--$31. Since then SP was on a downward
trend until it recovered to nearly $30 on reports of good earning and dividend
increase, none of which had anything to do with the acquistion.
For the SP to go up above $31 upon news of approval of the deal would
mean market sentiment has changed and that the current depressed price
is a result of anxiety over the deal falling through, Obviously that would
mean SP is going to take a hit if ALA is going to withdraw from the deal.
Think about this. At the time of the annoncement of the news of WGL acquisition
ALA was on an upward trend. All the positive news so far in all likelihood should
have moved it to the high 30s by now. Remember a few years ago ALA could
raise capital at a price around $50. With this in mind do you think it make
sense for ALA to decline further over the certainty of no deal?
Unless you believe ALA has nowhere to go but upward regardless
of the outcome of the WGL acquistion deal the answer to your question
seems pretty obvious.