Air Canada is taking off? Message Board

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Gold/Mining/Energy : Air Canada is taking off?

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To: chummer who wrote (916)	10/19/1999 3:05:00 PM
From: Alomex	Read Replies (1) of 1033

Lets see,Air Canada offers $12/share,Onex $8.25. I can see why you failed grade 2 arithmetic,why can't you see this is a better deal.Onex is going to have to sweeten their deal,as it is Air Canada's deal is better for everyone involved. Onex' offer is a combination of cash and shares. Since the shares of the new AirCo are not yet valued by the market, determining the exact value of the offer requires quite a bit more than second grade arithmetic, which is what you are using in the inane $8.25 < 12 comparison. The best guess by analysts is about $12 a share. Admiteddly if Onex choses to pay all cash you would get $8.25 as you point out, but this is a highly unlikely event. For all I care, you might as well valuate the offer of Onex wiht the assumption that they will find a diamond and gold mine right under CA hangars at Pearson. An all cash tender from Onex is that unlikely... Even the analysts are saying this is superior to Onex' low ball offer. Well, AC stock went up 3.6%, "shooting up" all the way to $10.10. Yeap, the analysts are very excited about a $12 a share offer.

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