Dear Ed - not really. From the realistic sense, NT is paying 60 shares of NT for every 100 shares of BAY to the BAY holders. At the time of the agreement, NT was trading at about $64. Therefore, the PR said it is about $38/shr at that instance. Since then, NT has been traded down to $53/shr. So, if the deal were to consummate today, BAY would worth only ~$32/shr. Since there is always a discount [time value, uncertainty etc;] therefore, BAY gets stuck around $30. Esssentially, $38 is a meaningless number, depending on how NT behaves. Unlikely that it may be, if for some cosmic reasons <VBG> that NT is trading at $100/shr, then you will see BAY at about $55/shr.
Hope this help
Best, Bosco |
