Yes, possibly the better move.
I have another takeover which may be similar: HET buying CZR. A sane person must specify (notify the broker) that he/she wants the stock&cash combo and not the all cash default (cash being $17/sh for a stock trading at about $20/sh).
The issue for the cash&stock choice for PCO, is is the value fixed? And if so, at what point? That is, if VLO does go to say $150, the cash amount remains the same but is it that the person gets many fewer VLO shares so that the total amount received is equivalent to $72 dollars?
For the HET/CZR deal the deal shows a sliding scale. There's an end to that scale though so that as HET has moved up, fewer and fewer shares of HET will be received all right, but finally the number of shares of HET is fixed, and now...as HET has continued to move up, CZR stock moves up with it.
I never called the company on this HET/CZR deal. Only read Yahoo - and I never saw the deal numbers posted there. I only found out about the sliding scale specifics when months after deal announcement, the written deal prospectus was mailed to me.
Anyway, I believe you could be right, and given I don't know the sliding scale for this deal (if it even exists), I've now sold the few PCO shares in my IRA, and I've sold the shares held long-term (>1 yr) in my taxable account. I'll hold back on a decision on the rest of my PCO shares until I learn more about the deal specifics. |
