Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Fortunately, I did not bale from ALU last week. If the offer, as on Thursday 15th February is worth $68.50 a share, is this now the price per share the ASX should reflect? Assuming the offer goes through, do we eventually get a formal offer for our shares from Renesas Electronics? Or, is there more to play here?
Hi Geoff,
Well done! If MM were still long ALU we would be inclined to take the money today and look to re-allocate elsewhere, with any deal, there are always risks, hence our call about a bird in the hand! The market price should theoretically reflect the bid price, minus the cost of capital between now and the time to compete minus a risk premium. This deal does seem highly likely, hence not a lot of risk premium there while we cannot fathom anyone else trumping the huge price being paid.
Take a free trial.
No payment details required.
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
