GREY:EBGUF - Post by User
Comment by
TickerTwiton Jun 29, 2018 4:39pm
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Post# 28253994
RE:RE:RE:RE:Enb will likely get to 50.00 now....imho
RE:RE:RE:RE:Enb will likely get to 50.00 now....imhoI was very surprised when they based the conversion ratio on a single day's close. But the ratio would have been favourable to ENF shareholders either way.
ENB share price had fallen about 28% since its top at 59, while ENF was down about 22% from its top at 36. The 5% premium effectively shortened the ENF drop to about 18%.
Being handed an arbitrage win of 28% vs 18% is a windfall in a comparison of utility-like companies, even if not the bigger one some would wish.
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Sadie222 wrote:
The ratio is arbitrary, not based on value but on one selected trading day. That’s my objection. The ratio should have been based on averaged numbers, since the two were not always trading in sync and on the day chosen ENF had dropped noticeably more than ENB.