I've just worked out why the price of AVO is falling (probably everyone else has already). Its not about our mkt hating the deal at all, as it says in that clip. The last two days, the ANO price on the TSX has dropped from $7.87 to about $6.60 last night, ie about 15%. The Canadians hate this deal more than we do, and that is now translating into an equivalent worth in Australia based on the scrip bid ratio. Forgive me if I am wrong, but I presume this is because ANO will move from a share base of 139 million shares to a share base nearly double that, so their holders are looking at large dilution, for only addition of 2 moz or so to their 6 Moz? of reserves. But the merger-of-equals thing presumably related to the fact that the two companies have v similar mkt caps.
AVO Price at posting:
$2.95 Sentiment: Buy Disclosure: Held