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Bullboard - Stock Discussion Forum STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

TSX:STB.DB.A - Post Discussion

STUDENT TRANSPORTATION INC 5.25 PCT DEBS > Can someone please help explain the final trading activity
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Post by rorybreaker on Mar 18, 2018 1:34pm

Can someone please help explain the final trading activity

I am trying to figure out what to do with my shares as this winds down and was wondering if anyone could help me understand what this trade has become.  

1. The benefit of holding on until the shares are forceably sold in our accounts is that we will receive 2 more dividend payments, correct?  The stock on the NASDAQ is pegged at the buyout price of 7.50US.  Are the people buying the stock on the open market today, simply buying it to receive the dividend and then get bought our for 7.50 when the deal closes?  Would this be called Risk Arbitrage?

2. For those of us who own shares in Canadian dollars traded on the TSE, has this mainly become a play on the USD/CAD currency?  

Are there any other factors that may influence the share price?  I know the sale could fall through or that another company may offer higher, but assuiming the deal goes through at 7.50US, what else may happen to the price and why?  Has anyone sold yet, or are you hanging on?

Thanks
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