Q: Hello,
Does the pronounced move up in NBLY today indicate that the PCP acquisition has progressed in some significant manner? Earlier news releases reported that PCP had until Nov 13th to complete negotiations. Any insight would be appreciated.
Thank-you,
Stephen
Does the pronounced move up in NBLY today indicate that the PCP acquisition has progressed in some significant manner? Earlier news releases reported that PCP had until Nov 13th to complete negotiations. Any insight would be appreciated.
Thank-you,
Stephen
5i Research Answer:
There was good news and bad news this morning (Monday). PCP has now secured financing for the transaction. This is important, but with some delays the exclusivity period has now been extended to January 15. Investors in takeovers rarely like 'extensions' but we think the financing move outweighs the delay. Investors are positioning themselves for a nice gain if all goes well and the deal goes through. There is still risk here, but we do expect the transaction to proceed as initially proposed.