Q: Good morning,
Noting that Filo is not trading at its takeout price, what are the risks and how likely are they to present that the deal falls through? Would you recommend selling shares at these levels based on any risks you foresee?
Thank you
Noting that Filo is not trading at its takeout price, what are the risks and how likely are they to present that the deal falls through? Would you recommend selling shares at these levels based on any risks you foresee?
Thank you
5i Research Answer:
The deal is cash or stock, but the cash portion is limited. Thus, shareholders will likely receive a combination of cash and LUN stock, and the 3.3% current offer-discount reflects time value and deal risk and share price fluctuations. We would, for now, HOLD. There is always some deal risk but we would be comfortable holding.