MANITOBA TELECOM T.MBT

Buy at 38.00

[showtime3]

sell at 40.00 Easy money

[hotrunner]

not so easy and not so fast. First the take over has to be approved by the Fed Govt Second, the deal closes early next year. Finally, if the stock price of BCE goes up you win, if the stock price goes down you loose.

[fellowship]

Not if you cash it all in.  $40 is the price offered by BCE. If one chooses to get 60 ish % of BCE share instead he will probably gambling some more.

[hotrunner]

if the deal goes thru, yes you would get your $40 cash. what happens if the CRTC blocks the takeover , then what ? what are the chances that the deal is squashed ?

[fellowship]

Too many "what if"...Take it or leave it. Is that easy :)

[MOJOJONO]

Lots of what ifs, but the real hurdle is if government allows for BCE to bulk up further. Assuming it goes through being able to get pure  cash is not a sure thing for investors: "MTS shareholders will be able to elect to receive $40.00 per share in cash or 0.6756 of a BCE common share for each MTS common share, subject to proration, such that the aggregate consideration

[hotrunner]

forgot to add....... "it plans to pay for the deal with about $1.4-billion in cash as well as shares and will issue about 28 million common shares."  

[Curvature]

This post has been removed in accordance with Community Policy

[MOJOJONO]

If you believe the deal will go through, but don't want to lock up capital. Write Put options @ 38. I think thedeal will go through, but I'm scared if it doesn't then Ill be holding more MBT than I'd want. Wrote 2 Oct Puts. https://m-x.ca/nego_cotes_in_en.php?symbol=MBT&instrument=MBT+++161021P38.00#cote Currently, you can sell approximately $1.45 / contract. Price will