SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: italiana who wrote (7452)7/2/1999 11:55:00 PM
From: WhySoSoon  Read Replies (2) | Respond to of 13953
 
You are correct. T * 1.05 = E so T should trade above E but it is not currently. In reality, it is T * 1.05 + risk premium = E. The risk premium that the Street assigns in this case is apparently 10%. This risk premium is the price you pay in case the deal cannot be closed either due to the TBFC shareholders disapproval, regulatory disapproval, any misrepresentation of the deal or adverse/different market condition that makes the original completely different. Make your own judgement call.



To: italiana who wrote (7452)7/3/1999 3:24:00 AM
From: Nandu  Respond to of 13953
 
I did this already. Instead of buying more EGRP, I bought some TBFC couple weeks back at 32.5, equivalent to about $31 per EGRP share once the deal is done. EGRP was at 35 then.


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News