Q: Please comment on ARX news. I own this stock; should I sell on the news or hold. Thanks!
5i Research Answer:
The deal is at about a 20% premium, and consists of 75% stock and 25% shares. It is the largest deal for Shell in 10 years, and fairly sizeable. We highly doubt there will be another party willing to get into a fight with Shell, so we would expect this deal to proceed. It is not a great premium, but OK. Still, we would keep shares for now.