Liquor Stores N.A. LQSIF

Globe says Sundial's move on Alcanna surprises Zamparo

[Pat123]

He is very polite and careful with the words he used:

The Globe and Mail reports in its Saturday, Oct. 9, edition that CIBC World Markets analyst John Zamparo has reaffirmed his "neutral" recommendation for Alcanna. The Globe's David Leeder writes in the Eye On Equities column that Mr. Zamparo boosted his share target for Alcanna by $1.25 to $8.75. Analysts on average target the shares at $10.83. Mr. Zamparo says in a note: "Sundial's proposed acquisition of Alcanna comes as somewhat of a surprise, but the business is a strategic fit with Sundial's existing retail platform -- particularly in cannabis -- and acquisitive nature. The deal offers only an 8-per-cent premium vs. [Thursday's] close, but a much larger 33-per-cent premium relative to September 1, when the letter of intent was signed. Alcanna would, in our opinion, benefit from the inclusion of some cash (rather than all-stock in a notoriously volatile industry) or price protection, but this likely would've come with a more modest offer. We believe this deal represents appropriate value for Alcanna investors."


Appropriate another way to say minimal offer