Q: Good morning
Thinking about the possible divestitures that POT will likely make to get approval of the merger. Are assets in situations like this typically sold before or after the merger?
If the assets are sold after the merger and at a premium to book value, it would seem the premium would be shared among shareholders of both companies even though the premium was not anticipated at the time the company values were set for the merger.
It would make more sense to me to sell prior to the merger and distribute the premium over book to the POT shareholders. Of course, if the premium is insignificant then it is a moot point.
Anyway, just curious to hear your thoughts.
Thanks for all your help.
Peter
Thinking about the possible divestitures that POT will likely make to get approval of the merger. Are assets in situations like this typically sold before or after the merger?
If the assets are sold after the merger and at a premium to book value, it would seem the premium would be shared among shareholders of both companies even though the premium was not anticipated at the time the company values were set for the merger.
It would make more sense to me to sell prior to the merger and distribute the premium over book to the POT shareholders. Of course, if the premium is insignificant then it is a moot point.
Anyway, just curious to hear your thoughts.
Thanks for all your help.
Peter