Jim, you left out the ..."just now"...
My view is that this company has done extremely well, several splits in last couple of years, including one last week, reflecting successful growth effort. However, they are at the top of their game as they are making this deal, and the market is looking very shaky overall. Ergo, as I am now dependent on their price for the value of my PAIR until deal is done in July, I'll take my cash, thanks. (Waiting a few days for possible better offers...) That way, if they continue upward, I can later compare with what I invested my proceeds in, but if they tank, I'm not required to take .43 of wherever they wind up at time of closing.
The fundamental problem with this deal is there is no premium for PAIR holders. All you get is tax-free exchange, and that is meaningless to much of the investor base, retirement plans, institutions, etc. As the large part of my PAIR investment is IRA, I can ignore tax consequences as well. That leaves little incentive to see what can go right or wrong with the market between now and July (!). Basically, ADTC is a good company, highly priced, locking me into a swap I would not make ordinarily if I were selling my PAIR. Bye. |
