I don't get it. Since USWI is being bought out by ACCC for an exchange of .077 stock swap, I don't understand why USWI is trading under $2 since .077 of $40 is $3.08.
(ACCC still closed above $43 today) Or why ACCC is nowhere near
the $50 being offered by TALK. Is it due to a lot of thing pending
approval?
thanks,
-Carlos
An excerpt from a Nov 7 release.
As reported October 31, TALK said it advised ACCC that it was prepared to offer $50 in TALK common stock for each ACCC
common share, without regard to ACCC's completion of its acquisition of US WATS Inc. (Nasdaq:USWI - news).
As reported, ACCC on October 30 said it received an unsolicited proposal from TALK under which TALK would exchange $50 in
TALK common for each share of ACCC common unless ACCC had completed, or was ''committed to'' completing its acquisition of
USWI, in which case the exchange rate would be $40 in TALK common for each ACCC share.
As reported on October 28, ACCC signed a definitive agreement to acquire USWI in a stock swap of about 0.077 of an ACCC
common share for each USWI common share, subject to adjustment, in a transaction valued at about $46,000,000. Under the agreement,
ACCC would also assume about $3,000,000 of other liabilities from USWI. |
