Q: Would you consider this a strong buy at this time given the large arbitage spread. Offer price seems to be working put to around cad$5.90 plus the newco share and its trading around cad$5.17. Any comcerns?
5i Research Answer:
No real concerns, but at its low valuation and considering shareholders may not be too pleased with the decline, the possibility of another bid has probably increased a few percent. We would consider it buyable as an arbitrage play, but also we do think ultimately the combined company will be rewarding for shareholders.