Q: Hello 5i team - you have/had a great long weekend!
My question is about Alta gas and their receipts for the WGL deal. The receipts are trading at 24.65 and the stock is at 23.84. If I understand this correctly if the deal goes through the receipts turn into stock so at 24.65 that would still be 8.88% dividend. And if the deal falls it gets paid at $31 per that would be a 25%+ gain ... what am I missing here - why shouldn't I purchase these receipts?
Thanks,
Sean.
My question is about Alta gas and their receipts for the WGL deal. The receipts are trading at 24.65 and the stock is at 23.84. If I understand this correctly if the deal goes through the receipts turn into stock so at 24.65 that would still be 8.88% dividend. And if the deal falls it gets paid at $31 per that would be a 25%+ gain ... what am I missing here - why shouldn't I purchase these receipts?
Thanks,
Sean.