Would appreciate to elaborate pros and cons, Please !!
Thank You
NA has certainly outperformed the sector over the last five years. The receipts carry the same dividend, but conversion to shares is dependent on deal closing. We would probably expect about a 5% to 7% discount. So it becomes a question of the discount, vs the the likelihood of deal completion, combined with how NA does in general and/or without deal completion. Since NA shares have fallen quite a lot on the deal and issue, we would probably lean to the stock vs the receipts, because if the deal fails, this drawdown from the issue will likely reverse, over time. In other words, while there will be a discount on the receipts, the stock might recover the difference if the deal fails to close. Considering the extra regulatory risk in any bank deal, we would rather NOT bet on regulators. But we would be comfortable either way, really, but if becomes a question of whether an investor expects deal closing. This really, is the only main consideration of the two.