Rogers Communications Ord Shs Class A T.RCI.B

Rogers buys Shaw

[Dibah420]

EOM

[Defiance2050]

Not to pleased with how large the premium is. But suprised at how at open RCI is up several percent and Shaw is at a large discount compared to the deal price.

[TimeScape]

Te reason that Shaw is trading well below the deal price, and that Rogers isn't up more than it is, is because there is a very real risk that this deal will not be allowed by the regulators.  If it goes through it will be a huge win for Rogers.  $1 billion in synergies annually.

[Defiance2050]

I expected RCI SP to drop to between 50-55 as it is overpaying, Shaw has also had negative market sentiment towards it. Dont think Rogers has said about how this would be financed and if any asset sales would occur.  I guess you are right about risk of rejection by regulators. Downside of potential rejected deal as well on Shaw SP. But 20% is a massive discount when the major shareholder

[DeanEdmonton]

I agree with you. The biggest problem is the current government is hostile to the merger. While the merger would be good for Rogers in terms of size, synergies, cross Canada reach etc the debt they are taking on to do this is huge. Add to that the cost of 5G and that is going to be a magnum debt load. I am waiting for Rogers stock to finish running up and will unload them.

[deepblue]

Hope this goes through. Will be great for both sides.