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Strategies & Market Trends : Option Strategies
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To: alanrs who wrote (1764)9/1/2016 10:14:40 AM
From: Cliff0rd   of 2591
 
The construction of the merger looks not healthy in the sense of that it is not done as in the normal way. However, Elon Musk is heavily incentivised to merge the companies. He has a large ownership of shares in both companies. He is kind of strange. He stated that Tesla could be a 1 trillion dollar market cap company in several years. The committee that he installed is just fake. Again, not to put pressure and influence the process. Although, he is not on the board it is very likely that he will push for a merger. If you read the announcement he was really pushing for it. Your news article proves that he is indeed pushing for it. The whole process is just a facade. It just shows that he did everything according to the rules.

It only has to be formally done. In order to not be suspicious, he abstained from voting, installed a committee and finally there is a period of time to allow other firms to place bids.

I think that when the firms do not merge, SolarCity's stock would collapse. He also purchased a large amount of SolarCity bonds recently. The latter would also decrease in value. Everybody knows that SolarCity is not a healthy company. In my opinion, I think that no other firm will place bids for SolarCity. The voting for the merger will take place after the deadline of other firms to place bids. I think it must be around October.

I am considering purchasing call options around the voting of the merger.
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