takeover confirmed smh & fin, page-15

If there were no acquisition, I think the stock would bottom at $6 to $8. But that would be a cycle bottom price in a normal trading market. Whenever one company wants to acquire another - unless the company being acquired is illiquid and is being forced to sell - the buyer needs to pay a premium. That reflects many things, including the key company leader and shareowner setting a floor price on where he will willingly recommend the merger.

What's silly isn't paying $13. What's silly is your thinking that Sinochem is going to drop the merger and actually get $8.50 as its buy price for the whole company. Clearly as soon as they started to buy shares at $8.50 the shares would jump back to $11 to $12. And then we would be right back where we are now. What would be the point of that exercise for Sinochem?

Sinochem wants certainty. Nufarm gave them a price for certainty. That price in the big picture is a lot cheaper than they would pay when the cycle turns. Deal with it. :)