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115 Posts.
30
12/10/18
21:47
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What a week for WDE shareholders.
WAM has 50 per cent acceptances - but fails from my numbers by 100 points on the 5 per cent market drop from the bid price.
Wilson might want to wait and see for a week but note the following:
1. These corporate actions cost money to arrange. Withdrawing the bid means the money goes down the tubes.
2. Perennial has a value bias - and value has done relatively well compared to growth stocks in the sell-off.
3. WDE option protections may have been triggered for some shares.
So even though the market has dropped 5 per cent - WDE may have outperformed the market - making it worthwhile to complete the takeover.
Pity we may not get the WAM divvy - but I think this takeover is a get out of jail card.
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