DIGE being bought for $61 per share
A Dutch company announced intent to buy DIGE for ~$61 per share
Stay tuned
Stay tuned
posted by Andrew at
8:43 AM
Sunday, June 03, 2007
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4 Comments:
Hi
Can you please comment why DIGE closed below the price it is being bought ?
Purchase Price / Share = $61.25
Closing Price / Share = $56.82
So even if i buy now i can make close to 4.5 dollars profit.
Thanks
I see 2 things:
1. Always a bit of a gap due to time value of money and the risk that the deal doesn't happen
2. Acquiree is using a share based formula, and their share price dropped 10% today.
There will be no 3rd party. Per the deal, DIGE has to stop any discussions with anyone else
As I read it, the deal is $61.25 OR 3.545 shares of Qiagen stock.
Which will Live Rocket choose?
I read the fine print and it is not an either cash or shares. There is a limit on how much cash is on offer - meaning that DIGE shareholders are held sway by Qiagen's stock price, which is down.
I don't know enough about the acquiring company to make a decision about staying or taking th emoney and running.
I'd like to take the cash and buy stock in the companies I've identified.
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