Wayne, this may be worth a look for your Garbage thread ...
Tell me where I am getting this wrong:
WCEC is about to be acquired by VDCT - before year end.
"This is the largest video retail acquisition in the industry since the 1994 Viacom/Blockbuster merger and will propel Video City into the position of fifth largest video specialty retailer in the country. "
"The terms of the transaction call for each West Coast shareholder to receive .33 shares of Video City common
stock (subject to adjustments under certain conditions), and .05 shares of a Series F Preferred Stock ($25 stated value) for each share of
West Coast Entertainment common stock."
Now, .05 of a $25 stock is $1.25
.33 of a VDCT share at todays close is worth .278
So as of today, a share of WCEC that you can buy for 1/4 is worth over $1.50
What is wrong with this picture? I know the "certain conditions" are not specified, but that only pertains to the amount of VDCT regular shares. The preferred shares are still what catch my eye.
Sounds like a decent company after the acquisition as well, although recent numbers are down, it seems like it is worth more than .25
"The announcement was made by Robert Y. Lee, Chairman and CEO of Video City. Lee added, ''This accretive acquisition will give Video
City critical mass at the store front level, a profitable franchising operation, and another solid internet site, all of which strengthen our
position towards becoming a leading vertically integrated entertainment company.''
Your thoughts?
MG |
