RE:I called it a day - Peltz put his name on Aurora which is the only likely reason he remains interested; salvaging his brand/track record which would likely be a key concern. He has warrants he can exercise at $~10.00 contingent on ACB's SP hitting $~30 which is meaningless. So, how far will he go?
- Balance Sheet- further impairment write downs are on the horizon, goodwill at min will likely exceed $1 billion. Subsequently, could there be inventory/other impairment adjustments?
- Debt- one could only guess the pressures being placed on Aurora operations by its lenders. Covenants breached? Who knows but is that a likelihood?. In any event, what are the prospects of a financial institution granting more credit to Aurora? Therefore, put the batteries in the printing press, produce more certs/dilution and screw shareholders more than they have already.
A super-competent CEO may belay market attitudes towards Aurora but given the shape of the balance sheet, who would want to take that on WITHOUT a super-deal with an outside investor/manager such as Mondelez? Then, there is the investment portfolio, its relevancy/profitability and if not, how board oversight at the outset played a role in the MASSIVE impairment write-downs that have, and need to occur.
Thursday is a critical day for Aurora.