RE:RE:RE:Rogers buys ShawI expected RCI SP to drop to between 50-55 as it is overpaying, Shaw has also had negative market sentiment towards it. Dont think Rogers has said about how this would be financed and if any asset sales would occur.
I guess you are right about risk of rejection by regulators. Downside of potential rejected deal as well on Shaw SP. But 20% is a massive discount when the major shareholder approves and the purchaser is in good financial position. I sold Cineplex at 34.25 and even before Covid Cineworld wasnt in great finacial position.
I think the overlap in cable is 0 Shaw is Alberta, BC and Rogers is Ontario and Atlantic. There is some overlap in Ontario cellular but as a percentage of the overall customers not that much as a percentage.
If this was Telus the #1 Western telecom and a similar size as Rogers there would be a near 100% chance of rejection due to removal of competition.
TimeScape wrote: Te reason that Shaw is trading well below the deal price, and that Rogers isn't up more than it is, is because there is a very real risk that this deal will not be allowed by the regulators. If it goes through it will be a huge win for Rogers. $1 billion in synergies annually.