Q: As the NA price drops due to its offer to buy CWB is it a buy at this point or better to wait to settle the dust. Also, do you expect issuance of one billion new equity will offer at a lower price than current market price or it may dampen share price further?
5i Research Answer:
We think the deal makes sense for NA even at the premium paid. We would be comfortable buying, but we do not think one needs to rush. It may bounce around for awhile. The subscription receipts we think are attractive, and if the deal fails money is returned. But they will likely put some short term pressure on the share price. But overall, we endorse this deal.