Q: What is your assessment of the takeover of Absolute by Crosspoint partners? Can I assume that it is highly unlikely that there will be a competing bid? Would you therefore sell it now or wait for the shares to be taken up at the offer price?
5i Research Answer:
If replacing ABST we would suggest DSG. The offer is all US dollars, so certainly there is a currency impact. Year to date the Canadian dollar is basically unchanged. We would not consider currency to be a big risk in the relative short time frame to close. We would consider the odds of a competing bid low, but not zero, so would prefer to hold right now. We would give odds in the 15% range. Its business is somewhat unique and it has a good customer base.