Oh dear! bad timing mate or what. If you sold at 63 you would have been 4.4% better off if you had waited until today. Depends on your entry price, but if you did manage to get out at 63p with a significant profit then well done.
Ok I note the optimism of others but I'm out of here. FTSE250 down another 2% today and CWC 2p off. LG is now at a 52 week low and the world is either in a bear market or a state of collective panic re oil, minerals China etc. Would rather hold cash at this time. GLA.
Kenny, don't get too panicky yet. There are months to go before the deal completes so the LG share price to which CWC is now tied (as Grayling correctly states) could well rise again. Additionally, if you intend to receive LG shares when you do dispose of the CWC share, they will eventually be sold in dollars which will the be converted into pounds. In my last post I put a link explains that the pound is expected to drop sharply later this year which could mean a much higher return.
The deal can only be a rip off if the price offered was intentionally set too low, which at the time of the offer it certainly was not. All that has happened is that in the meantime the markets have tanked and the LG price (to which CWC is now tied) has dropped. If CWC were standalone who is to say it would not have dropped back to the present price or lower anyway? Similar to the Shell/BG deal, which looks less attractive now the price of oil/gas has dropped so far. Will Shell pull out of the merger...I think not. Likewise this LG/CWC deal will go though at the market determined price.
Ok panic selling is happening as people realize a takeover at these prices is a rip off for current shareholders. Anything less than 70p is nonsense. Someone needs to pull the plug now and allow cwc to continue trading through this current weakness in share prices and hold out for better value in the future IMHO
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