RE:RE:RE:RE:Market's insanity... TRZ vs CFPI guess we just have a difference in perception here...
I view the TRZ deal as a quasi certainty and the CFP deal as much more uncertain here.
If I had to attribute a pourcentage of the deals passing... I would say I would give TRZ 90% (maybe even 95%)... while I would give CFP 70% at this point.
Obviously, I'm a lot more optimist on the process for TRZ from this point on... I think it's a no brainer for the governement... They will pose some opposition and give out a few demands to give the apparence that they did something... But they can't refuse the deal altogether... TRZ as been losing money for years and years, they won't just force them to do it till they go bankrupt. Given the situation, it's probably the best outcome as opposed to the alternative.
Who knows what could happen with CFP at this early point in the process? Sure, I think it'll pass, but I do believe there is more uncertainty as there are so many steps to be accomplished.
My main argument for buying TRZ over CFP is the downside risk... If CFP fails, it's going back down to where it was before the announcement (8-10$)... While TRZ would go down to 13$ or 14$ as Mach gives a strong support here and the board of TRZ could always pick up the phone and apologize to them. With a price of TRZ flirting with 15$, it's almost priced as the deal failed already.
nelson07 wrote: You make all valid points but don't forget that we don't know how the new transport minister
will decide.
Having 60% of the transatlantic market is huge and we all know that Transat head office
will get shut down if the deals is approved.
There will a lot of pressure made on the transport minister...
If J. Pattisson made this offer, it is not to back down if the special committe ask for a
little bit more.That is why there is such a huge difference in the pricing of the two.
Quasi certainty i the CFP offer VS a lot of ??? with the TRZ deal.
One of my best friend has a lot of TRZ so i am routing for the deal to go through
but at the same time,i am affraid that he may loose a lot.
Good luck to all TRZ shareholders
Time will tell