re: Ann: Saputo Announces Improved and Simpli...
Won't disagree. But the drop is usually only until the companies have gone through the transition phase and once the costs have been done and the cost benefits start to be shown in reports the company usually bounces back pretty quick.
just a side note, if we talk normals, the company doing the takeover will normally drop share price during the takeover. This has been the opposite in the case here, so normal scenarios may not apply.
The other factor is that selling out for the quick buck is not always the best case, as long term holders may just still have a long term time frame and BGA offers a good chance of a second bite of the cherry plus long term growth. Many of these holders have large capital gains on their WCB holdings which will erode a lot of there value, so $2 plus a stake in BGA may be what they are after.
Only 3.733% have taken up the offer from Saputo,which I would have thought would have been higher considering original divvy bonus which acceptances had to be in by today to get. Maybe people don't like what they see from Saputo.
WCB Price at posting:
$9.22 Sentiment: Hold Disclosure: Not Held
