So, today Mantra has agreed to Accor’s bid and has entered into...

So, today Mantra has agreed to Accor’s bid and has entered into a binding Scheme Implementation Agreement.

The implementation of the Scheme is subject to a number of customary conditions including the approval of Mantra’s shareholders and the Federal Court of Australia, as well as necessary regulatory approvals, including from Australia’s Foreign Investment Review Board (FIRB) and the Australian Competition and Consumer Commission (ACCC).

So there are 3 bodies who need to give their thumbs up to make this deal go through. Tough ask IMHO. Considering that Accor already is the largest hotelier in Australia with more than 20,000 hotels and 27,000 rooms and Accor being a foreign entity, I can’t see all 3 regulators approving this deal.

In that respect I am considering placing a sell order at or around the current price (went as high as 3.93 today). If the deal goes ahead, I stand to loose 3 cents per share. Tough. If it is knocked back, the SP will tumble big time. Even tougher.

What’s your opinion guys? Any comments welcome please.