Post by
SargeX on Jan 06, 2021 2:20pm
Interesting math on take-over price
I continued my trimming of BPY.UN this morning. Since the take-over annoucement on Monday. we've sold the 1200 extra shares we had bought in early Dec with the thought of the take-over happening (of course I had no idea it would be this quick or would ovbiously have bought more).
We then trimmed a total of 1750 of our 3250 "long term" shares at an average of $21.62. I know this may result in us leaving a bit of dough on the table if BAM bumps up the offer but it will be above the $16.50US offer.
After doing the math, I find it interesting that a $16.50US offer at a 0.785 exchange rate equals $21.02Cdn. A $17.50US offer (which I suspect will happen) at 0.785 equas $22.29Cdn.
I also think that the US dollar is going to weaken more so the exchange rate might end up at 0.79 or even 0.80 which will lower the Cdn$ amount.
Anyway, these calcs make me comfortable with what I've done.
The only other factors would be a higher offer and the take-over getting voted down. We still have 1500 shares as a bit of a hedge and I'll be voting no on the offer.
Ciao
Sarge
Comment by
ChungasRevenge on Jan 06, 2021 8:43pm
What if BAM starts climbing? Up .84 today. .84x.40= .34 If you had 3500 shares like you said. 3500x.40 = 1400 1400x.34= $476 You would have gained $476 today
Comment by
rad10 on Jan 07, 2021 10:14am
Better offer in the pipeline.