There was still some uncertainty on the regulatory risks and...

There was still some uncertainty on the regulatory risks and timing. The conference call just now seems to have given more confidence as SP is moving again. Management was very confident that the risks were low and with the mitigations in place that any hurdles would not break the deal.

Main discussion was around the CFIUS approval. Here were the points discussed:
1) standard review should be 30-75 days
2) if a full investigation was required then it would be 105 days
3) deal can close without CFIUS approval
4) very limited risks as it is not a defence or technology deal. SRX keep only a very small amount of patient data. Radioactive materials are very minute and not weaponizable.

There are many mitigations if any of the above force actions from CFIUS. CDH will even tolerate up to $50M in lost US income caused by any of the forced actions from regulatory bodies. This is a third of the US income and would have to be a very extreme action which the CEO through was very unlikely.

So, I believe from here it will be a timing issue and as regulatory approvals are ticked off one by one, the gap between SP and offer price will reach bond type returns.