Alterra Power MGMXD

Conditions of Sale

[twoblue]

From AXY press release:

0. TRANSACTION DETAILS

   Under the terms of the Arrangement Agreement, Innergex is offering to acquire all of the issued and outstanding Alterra Common Shares by way of a plan of arrangement. Alterra shareholders will receive, at the election of each such shareholder, either (i) $8.25 in cash or (ii) 0.5563 Innergex Common Shares for ...........

Am I wrong in assuming that upon a successful completion of this deal with Innergex, one of our options is to take $8.25 in cash for each share we own?  At todays price that would mean about $0.60 per share increase.  Is buying more shares here a good idea or not???

[SimplyRunRig]

There is a limited pool of shares and cash available. If too many choose one or the other, some of them will get the combination.

[twoblue]

If there is a limited pool, how does the company determine who gets cash/share if there is an overflow request for cash, say?  At present price, cash would be over requested. 

[SimplyRunRig]

Here's an interesting read filled with information and stories, which will likely leave you with even more questions: https://hbr.org/1999/11/stock-or-cash-the-trade-offs-for-buyers-and-sellers-in-mergers-and-acquisitions