AAB.TO,
I recommend to CEO that AAB pay out a special dividend before the merger, since they are getting less than 1/2 of the company and contributing 10% more of the assets, and that's before their largest holding SUE.TO rallied 40%. I hope that message, along with your feedback, will lead them to consider it.
That being said, there are several reasons to vote in favor. SUE.TO holds some private investments that could be overvalued. I don't want to take $1 million hit to NAV from cancelling the merger, the combined company will have a lot more trading liqudity and should hopefully trade at less of a discount, and there is a huge merger-arb spread (i.e., AAB.CAT converted into DSM.CAV would be up about 20% from current depressed levels). A 20% gain is nothing to sneeze at.
For those reasons, I am considering holding my nose and voting in favor. Voting against is the principled thing to do, but at this stage I am focused on maximizing returns.
MC |
