Converge Technology Solutions Corp T.CTS

A Similar Viewpoint

[retiredcf]

CTS just exercised an option to increase their amount of funding from $500M to $600M.  Does this indicate they might not have reached an agreement re a takeover? 

Not necesarily. Regardless of what's happening in the background business needs to continue. Keep in mind CTS had been approached, and may not be a willing seller. 

----------------------------------------------------------------------------

Is the sell off in CTS today rational because they increased their credit facility by 100M, or is it just retail investors panicking because they think no deal will come? What's the stock worth with no deal; most analysts say 8-9. 
 

BUY

Converge Technology Solutions(CTS-T)

10/02/2023

 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

Recent selloff is an overreaction; most companies are happy to have higher credit lines regardless of what else is going on. 

They provide flexibility of course. 

We think $8.50 to $9.50 would be an acceptable price for buyer and seller.  

Technology

 

Stockchase Insights

$5.380

 

[AlwaysLong683]

In my view, if there is no takeout and the Committee recommends business as usual, things boil down to the following: 1) How will the market react to the news that there is no takeout in terms of where the share price settles at post-announcement? (I suspect most shareholders who were banking on a takeout would sell) 2) Wonder if there was in fact a firm takeout offer for $8 or more per share