CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

Be Wary on Canexus

[Olderguy]

The following statement in the Superior Plus Q1 report caused me to take a bird in the hand rather than one in the bush. "Potential Remedies" means the US may not approve the takeover or may have it substantially altered. Be wary, this is an election season and the US does not take kindly to Canadian takeovers.
 

• In the first quarter, Superior and Canexus continued to provide information to and have discussions with the regulatory authorities in Canada and the United States. Superior and Canexus mutually agreed to extend the Outside Date of the Arrangement Agreement by 90 days to June 29, 2016. The discussions with the regulatory authorities are currently focused on potential remedies.
•  

[Tobuyornot]

I take it to mean the very opposite.  Deal is on.m Just finding out what needs to be sold off separately before apporval.

[Olderguy]

It may also mean the deal is less attractive to Superior Plus and the purchase price has to change.

[Tobuyornot]

Looks like the market liked the NR.  CUS up on very good volume.

[mattmckenzie]

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[mattmckenzie]

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[Kherson]

LOL... You guys are breaking me up! Read the just released Superior MD&A report! Too funny... Kherson

[mattmckenzie]

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[Kherson]

Glad to see that the paid Canexus pumper is still pumping! Matt, we both know that if the merger deal fails, Canexus will be seeking CCAA protection! Kherson

[Roxy27]

Olderguy, Canexus has no assets in the US, so the comment about the US not liking Canadian takeovers is overstated IMO. Discussions will be focussed on competition and yes, the US will be sensitive to the impact to existing US companies. SPB could very well need to close/sell some of their capacity.  Good luck. 

[Kherson]

The above speaks volumes! I have been saying for 6 months now that Canexus will be seeking CCAA protection before any merger agreement is finalized... Kherson