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Technology Stocks : Avant (AVNT)
AVNT 30.42-0.6%10:49 AM EST
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To: Cosmo Daisey who wrote (2019)1/7/1998 6:06:00 PM
From: Jonathan Greenberg   of 3441
 
Ok, just me thinking out loud, here.

If the price of AVNT stock is below 25 at the time of the merger (say 10), the price used to calculate the share conversion (the conversion factor) is based on AVNT stock being worth 25. If AVNT stock is more than 35, the conversion factor is based on 35 (although I laugh when I think about that possibility). That much is in the Dec. 12th Edgar filing.

So assume you sell TMAI short and the merger goes through. The amount of AVNT stock you get (have to cover) is based on an AVNT stock price of 25. But what if the AVNT price is 10 at the time of the merger. The amount of stock you have to cover from shorting TMAI is converted to AVNT stock, but AVNT stock valued at 25.

Am I way off base or wouldn't that just be the cat's meow to pick up 15 points on a short just due to the merger?

This can't be right, it's too easy. Can someone tell me why I am wrong?

Thanks,
JG
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