jb, you cantankerous (not so old) Curmudgeon, my instincts tell me that you are right. Jain tells us that the merger immediately will be accretive to earnings and all who spoke at the conference call (Russ, Jain and Amur, I believe)affirmed that the merger is based on synergies. Clearly, so far, Wall Street does not accept the views expressed by the participants who announced the deal. Presumably, the dog and pony road show is designed to satisfy the powers that be with the validity of those affirmations. I must assume that the principals who constructed the deal understood there would be a problem with acceptance or the road show would not have been arranged to take place so soon after the announcement. Unless shown otherwise, I also assume that the principals are confident they are able to allay current fears and convince Wall Street that their announced assessment is correct. Soon we will know. In the meantime, I do not propose to second guess the executives who are in a position to know the facts and details that dictated the merger and, thus, are far better able to determine the issues that seem to be troubling us. I am not avoiding the reality that the post announcement price action is a matter of concern. On the other hand, I am encouraged by the fact that more than a few of the recently announced mergers seem to have encountered the same immediate adverse reaction, but shortly recovered after the nature of the transaction became clarified. I hope I am right...If so, we can amble down to the local pub to celebrate and quaff some Wolaver Pale Ale. We can invite levy and his buddies, Q and G. The shark ladies are not brew fanciers. Moreover Sarkie is angry with levy. This will have to be a male only event. Must stop. Lightning all around.
Sy |
