Brendan, if the merger is not approved by shareholders, then this particular deal is off. At that point I suppose they could try again, but I have no experience with this sort of thing. Re details or justifications for the fixed exchange rate...No, none were offered that I remember. But if you were making the deal representing one or the other, I think you would have wanted it written up in the same way: They took the market value of the cos. before the market knew about the merger, while the market was still valueing them as separate entities. Then they decided from there what the cos. were worth, and then the deal was struck. If I had been either Casey or Eric, I would have wanted a FIRM FIXED exchange rate also. I can't blame Eric Benhamou for not wanting the value of his "currency" to fluctuate with the whims of the market place. This way both cos. have to rise and fall together, to keep the deal at the agreed upon terms.
DK |
