10-23-2016, 12:19 PM
(10-23-2016, 09:32 AM)crimsonghost747 Wrote: Terms: Time Warner owners will receive $107.50 per share comprised of $53.75 of cash and $53.75 in AT&T stock. A collar is involved, meaning TWX shareholders get 1.437 shares of AT&T should its average stock price be below $37.411 at closing, and 1.3 shares of AT&T should it be above $41.349 (Friday's close for T was $37.49, and for TWX $89.48).
$107.50 offered for a company that has been hovering at a little under $80 for the majority of the year. I don't mind the buy itself, I think Time Warner is a good company and I've been eyeing them myself quite a few times, but the price seems to be way through the roof.
And half with shares, half with cash... so add another 40+ billion to the debt. Not a big fan of this deal.
Yup....this deal reeks. I am not a fan of the AT&T management and decided to sell earlier in the summer. After repeated promises that the company will focus on reducing debt in the post-DirecTV merger, the company did not show any restraint whatsoever. They were bidding on horrible assets like Yahoo just to beat out Verizon and were on the verge of getting into a price war. And now this?!! $108B!!! Third largest M&A deal ever announced....fueled by over $40B in debt?!! No thanks.