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+--- Thread: Any thoughts on this LO-RAI deal???? (/showthread.php?tid=616)
Any thoughts on this LO-RAI deal???? - Robandcindy2 - 07-16-2014
Have some LO with which we are up $1400.
(Yes, every now and then a blind squirrel finds a nut)
Do I (we) hold....and take the deal or take the money and run????
REF:
http://investorplace.com/2014/07/lorillard-reynolds-american-rai-lo-stock/
http://seekingalpha.com/article/2315775-update-lorillard-shareholders-may-be-disappointed-by-acquisition-price-but-consideration-will-likely-be-final
http://seekingalpha.com/article/2315975-reynolds-american-and-lorillard-finally-agree-to-terms-in-a-long-awaited-merger
http://seekingalpha.com/article/2316305-lorillard-is-a-bad-deal-for-reynolds-american-investors
RE: Any thoughts on this LO-RAI deal???? - Dividend Watcher - 07-16-2014
I'm still not clear on the logic of the deal other than a larger RAI to compete with MO/PM.
As I said elsewhere, the blu line will be sold to Imperial whilst RAI's new, untested in the market e-cig will be retained. The only big asset I see is RAI becoming a major force in the menthol market. With zealots looking to control everything you do in your life, that isn't the most promising thing looking forward.
For me, I'm going to wait and see if the price will come back a little closer to the buyout price and then sell. Where will I put the money? I'm still not settled on that yet. I'm finding no big benefit for the investor/owner in the situation.
RE: Any thoughts on this LO-RAI deal???? - ChadR - 07-17-2014
With the huge drop in price for LO after the merger was announced, that made up my mind to sit and wait. Though getting a 10% discount might make me buy some more LO and wait for the increase in the stock price to the merger price.
RE: Any thoughts on this LO-RAI deal???? - Dividend Watcher - 07-19-2014
Ok, I've done a little more research on the deal. LO shareholders will receive $55.50 in cash and 0.2909 shares of RAI for each share of LO. Since I'm not interested in owning RAI, I think I'll sell soon and move on. The low cash part of the deal may hinder much more recovery in price if many people have the same opinion of RAI that I do.
I bought LO because they had a niche with the menthol market and blu e-cigs. It differentiated them from MO and RAI.
RE: Any thoughts on this LO-RAI deal???? - rapidacid - 07-23-2014
(07-19-2014, 11:12 PM)Dividend Watcher Wrote: LO shareholders will receive $55.50 in cash and 0.2909 shares of RAI for each share of LO
I believe it's actually $50.5 in cash. SA Article
RE: Any thoughts on this LO-RAI deal???? - Dividend Watcher - 07-23-2014
rapidacid, thanks for the correction. Yes, brain-finger disfunction.