Posted On: 09/24/2015 12:34:50 PM
Post# of 11038
All my opinions. That's the reason there has to be a cash option, a reference price. Also, you cannot force a shareholder from a liquid investment to an non-liquid one in a different company in a different country. Shareholders should have the option to decide.
Shorts cover at whatever price they can find. If market price is lower than the merger price, great. Have seen this happen when payment takes time, but difference in price is minimum, 5% or less. Some may decide to cover at a higher price and avoid fines.
In this particular case, where there's only one or a few big shorters, we won't see a short squeeze and a complete market circus. I think shorts will just quietly accept the charge and see NTCC draft the funds. This way, the market won't notice the NSS position and they will preserve their "good" image.
Shorts cover at whatever price they can find. If market price is lower than the merger price, great. Have seen this happen when payment takes time, but difference in price is minimum, 5% or less. Some may decide to cover at a higher price and avoid fines.
In this particular case, where there's only one or a few big shorters, we won't see a short squeeze and a complete market circus. I think shorts will just quietly accept the charge and see NTCC draft the funds. This way, the market won't notice the NSS position and they will preserve their "good" image.
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IMHO
Always, always do you own DD. Only invest funds you can afford to lose and trust nobody but yourself.
Always, always do you own DD. Only invest funds you can afford to lose and trust nobody but yourself.
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