Q: I have shares in Nvei that I would love to sell - bought at $77. Would you recommend waiting to see if the deal goes through, and if so what happens to the stock? Or in case the deal collapses, what target price might I look for before I sell? Thank you.
5i Research Answer:
The stock was $29.50C$ or $21.76US before news broke, and news seems to have been kept secret very well (it declined every day last week). With no deal we would assume it goes back to those levels. In terms of rumours, it is pretty good. We have a good source (Wall Street Journal), confirmation from the company, the name of at least one buyer (Advent). No price indication, though. We think there is enough 'smoke' here to keep the stock for a bit of time. If there is a deal, the stock will rise to close to the deal price, and then be delisted when the deal is finalized (this usually would take at least several months).