Can it be so easy and be missed by everyone else? Best counts I can come up with were 42.2 M shares CRH prior to their class action settlement, add 5 M for the settlement (11.8% increase/dilution) and the IHS merger still comes out at a value for CRH of $5.46 per share assuming IHS at $29.
I'm leery that some info is missing, most of the "brilliant" decisions I have made based on this kind of situation ended up costing me!
Source info follows:
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Monday October 21,96 The Merger:
Under terms of the agreement, Coram stockholders will receive approximately $5.50 in value in IHS common stock for each share owned of Coram common stock with a fixed exchange rate. The agreement specifies that IHS will issue 0.2111 shares of IHS common stock for each share of Coram common stock currently outstanding. When the acquisition is consummated, IHS will issue
approximately 10.8 million shares of common stock. At September 30, 1996 IHS had 23,117,904 shares of common stock outstanding. The equity value of the merger is approximately $280 million, based on the exchange terms. The total value of the transaction, including the assumptions of Coram's debt by IHS and other financial obligations, will approximate $655 million. Excluding
transaction costs, IHS expects this merger to be accretive to its earnings per share in 1997 and thereafter.
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DENVER, Jan 31 (Reuter) - Coram Healthcare Corp Friday said it received approval from the U.S. District Court in Denver of its agreement to settle a securities class action and a related derivative lawsuit.
In addition to certain cash consideration, Coram is issuing five million new shares of its common stock pursuant to the settlement of the class action.
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