Q: What is your opinion of the ELD/FOM deal? Do you expect it to close and if so would you take advantage of the drop in ELD's price to initiate a position? Thanks...
5i Research Answer:
As far as offers go, it is not great. The market is acting like another offer will be forthcoming and we would HOLD for this possibility. Still, odds of a new bid in a friendly deal are never that high. If interested in ELD we would see the dip as a buy opportunity. If it gets FOM at the current bid it will be good for the company. If not, the stock could rise anyway unless it gets into a bidding war.