Hi Waz.
An interesting question with plenty of people on both sides of the fence hence the stock trading well below the bid price:
- We have seen a number of suitors like TPG and other private equity firms walk away from bids and is commonly the case this bid is conditional and non-binding and that is reflected in the discount
- However the initial bid was strong and the company was granted exclusivity plus its overall a “cleaner” business with few skeletons likely to be lurking in any closets!
MM still believes the bid is successful and hence SIQ is a buy around $9.30.
We have answered your WHC question earlier, however as we have written, it’s important to manage position sizing as stocks rally significantly.