RE:RE:RE:RE:RE:Can anyone explainIn my experience, 4% for a CHINESE bid is cheap... The market usually gives those a much higher spread... I suppose the potential for a higher bid is something to factor in here...
The biggest issue with those is the timing... Approvals from Investment Canada and from the Chinese government can be notoriously long and delayed!
The Chinese government like to keep a strong hold on the value of the RMB and to autorize the payment of 1B+ in foreign currency (US or CAD) takes a lot of paper work and time.
To be transparent, I sold quickly after the announcement at 5.82 CAD hoping to capture a bigger spread as time passed... I would have anticipated it to be sitting at 5.7 CAD or slightly bellow by now... I'm still waiting.
I must admit that the 5$ CALLS strategy is quite smart... Wonder why anyone would want to play that? I guess some would want the upside of a higher bid with no downside of a Chinese deal falling apart.