Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Michael Burry who wrote (7803)	7/21/1999 7:30:00 AM
From: valueminded	Read Replies (1) of 78476

Mike: The biggest risk is a reduction in the buyout price followed by a delay in consummating the deal (imo) Assume that the info on Yahoo is true and the deal is delayed from oct to jan. The three month time premium risk alone would reduce the present value by about 1.5% depending on your yield instruments. Obviously the market has priced in some "deal flexibility" as they expect the deal price to be reduced or delayed. Question, since Case has a relatively high debt load, New Hollands will probably roll over to New Holland debt (other option payoff=unlikely) If it is rolled over, the bond holders will want a premium no doubt for their trouble. This alone increases time risk (negotiation time) and possible the takeover premium as I am unsure how NH is accounting for this in the 4.3 billion. What are your thoughts ? thanks

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next