One current Biota share will be equal to 0.669 NABI share. I...

One current Biota share will be equal to 0.669 NABI share.

I fail to see there is clear arbitrage here.


If you go to the NABI's balance sheet, you will find that the quantum of the return of cash to NABI shareholders, if the meger goes through, is still unknown. Based on the balance sheet, there will be little cash returned as the shareholder equity was only about U$59M.

If the valuation by those posters there is correct (about $2 cash return if liquidated), then, you do not have to consider the merger, just buy into NABI because it is already undervalued by 20%.

How is the unearned revenue of about U$33m going to become earned during the next 5 months? Think about it!


Just my thoughts.