Time to digest
so as this deal sinks in and has had some time to marinate, the more I think about it the more something doesn't sit right with me. Why 5 billion, no why 10 billion. Constellation already had the inside track. Their investment in canopy was public and should have been large enough to make them feel comfortable going forward until they started to see what revenues would be. Instead they come forward with an unbelievable, Blockbuster, 10 billion dollar deal. Why? Why so soon? Why now?
My theory goes something like this. Bruce Linton receives a call from a huge player that invites him to an informal meeting. At this informal meeting big numbers and intentions are revealed. Bruce being Bruce, a loyal trustworthy person and by his own words a person that doesn't forget about the people that helped him along the way, feels obligated to bring this information to Rob Sands and constellation brands for full disclosure and first right of refusal. Rob Sands already having the Golden Goose under his arm doesn't want to let it go and steps up and matches the offer that was informally presented to Bruce. What other reason could there be for the amount of money and the premium paid for the shares. To sweeten the deal they structure it in a fashion where Bruce and every other shareholder can still participate in future earnings.
the deal is structured so that constellation over the course of I believe it was 3 years go to choir up to 50 or 51% . Bruce in the interview I believe said 49 percent so I'm going to go with that . Think of that as a defense mechanism for any kind of and unwanted takeover bid.
This is of course all fictional from the inner workings of my mind so please don't use any of it to Fashion your investment decisions. Probably totally incorrect, but how cool would it be if it were correct.