In early Oct. after the possible take private offer on NBLY was announced, I started keeping tabs on it. From the initial pop the price action is down on a daily basis, it seems.
When do we expect more public info to be released on this one? It sure smells like the old DND bait and switch example of the past year or so and we know how that one has played out. (apologize for the cynical DND comment, but it's the most recent example I could think of)
Is the arbitrage opportunity here picking up speed, or a sign that the market thinks this deal will not complete, thus stay away?
Many thanks for your help.
The offer is a bit more definitive than the 'soft' overture DND management made. TD had provided a fairness opinion, and an independent board committee has agreed to terms. But, at this stage, it is still just a letter of intent, not an official bid. The board needs to review details before signing a definitive agreement. Financing is necessary. The board has stated they will not comment until it is either official, or cancelled. As far as arbs go, it has potential. We added some to our growth portfolio because of this. But it is important to note this is not a risk-free trade. Market weakness has a way of making deals harder to close. The stock is drifting lower daily, yet is still $4 above where the stock was before the 'offer'. We are fine owning it, but investors need to understand much could still go wrong here. But, there is now an equal up/down scenario (assuming it goes to $12 on no bid) and we would still put odds higher that a deal does get done here.