Today, Atlantic Power had trades above US$3.03 (the proposed cash merger price):
At 11:04am (pacific time) somebody pumped in an order for 400k shares.
Although I have expressed my doubts at the feasibility of a counteroffer scenario, we will see. The past couple trading days saw the stock trading at a relatively high merger arbitrage (roughly 3-4% for a half year) and I was expecting this to close a little. However, trades above the US$3.02 point are highly suggestive that somebody is gambling on a superior bid coming.
I haven’t sold any of my shares since the initial merger announcement.
Fingers & toes crossed !
I don’t think we’ll see a counter offer necessarily but probably a shareholder suggesting the price is too low which could result in a bump. Presumably after the management circular is filed.
Sacha…there’s an interesting SA article on AT prefs called atlantic-power-preferred-shareholders-should-vote-against-proposed-takeover-unless-better………..
not sure how the paywall works….maybe you can link it.
Main question is can the prefer holders kaibosh the deal by voting no – or can the transaction still proceed just leaving the prefer outstanding – in which case they’ll lose out big time.
JP Morgan today filed they dumped most of their ATP stake which was previously a 5.3% passive position as of January 20th, 2021.
I really do not think we will receive a counter-offer unless something really crazy happens in the next couple months.
Meeting is slated for April 7, 2021. Record date is February 16, 2021. Any would-be suitors have until Friday to pick up a ton of stock!