Post by
humppyus on Nov 08, 2017 9:53am
Well Isn't This a Sticky Wicket
I am trying to get my head around this one. Right now I am glad I did sell back in late Sept. Basically from what I see here is William Hill is not satisfied with its negotiations with Scientific and is prepared to take a $40,000,000 loss to block the sale. Most likely a negotiation tactic, but definately an escalated one at the very least to try and force Scientific's hand.
Any other thoughts out there.
Comment by
uograd on Nov 08, 2017 9:58am
loss would be even greater because they would kill the deal and likely price would drop to 1.80 or so. Weird for sure.
Comment by
hipfner on Nov 08, 2017 9:59am
Obviously bullish, but the market is not always rational. If W.Hill is happy to take a $40million loss to increase their share count they clearly believe that the $2.40 bid is grossly undervaluing the company. Now they'll check with other institutions and see if a buyout offer can be made, or alternatively force a much higher buyout price.