Yes, "buyer beware" on these takeovers.
In my basket some are progressing ok, others not.
SIMO has fallen. Maybe because it's going to take a lot longer, if ever, for the Chinese to approve its merger.
I'm holding on, because SIMO still looks okay on its metrics I see. And Elroy still likes it -g-.
SAVE's also dropped a couple of points. I have enough shares, and I'll hold. Another one where the merger may take longer than many expect.
I missed SJI but will enter now. A 6% yield if the transaction closes within a year.
Petal's Swedish Match (tobacco) is down today a bit. I added more shares.
HOLI. Looks like interested parties are finally going to make a firm offer. The stock's up about 15% on the today's news of the possible offer. Coming down a bit from this morning, it's now at about $19.45. Something is off kilter though if the news reports are correct:
"A consortium led by China's Hollysys Automation Technologies, Ltd's (NASDAQ: HOLI) management aims to take the U.S.-listed automation and control system maker private in a deal at a $1.8 billion valuation, Reuters reports.
The consortium plans to offer about $29 per share, representing a premium of 71% to the firm's September 1 closing price of $16.96.
The management team, led by founder and CEO Wang Changli, has won endorsement for the deal from the municipal government of Beijing."
$19.45 to $29 is too great a spread. Even if the offer isn't all cash. Maybe it's cash + debt? Anyway, I added more shares today.
Buyer beware! |
