If the acquisition is at $104 why does the stock trade at such a discount?
Is the market building in a renegotiation of the price since the company is loosing so many customers to cloud services like AWS Workspaces and Azure windows desktop.
7 replies (most recent on top)
How does it not benefit shareholders? Without the deal the stock would be in the 60s if not lower.
Employees are screwed, probably either way.
Why go through with the deal? Who does it benefit? Not employees or shareholders.
Banks are bracing for billions of dollars of potential losses on leveraged buyouts, as risky corporate debt becomes harder and harder to sell.
Citrix alone could be responsible for a $1 billion hit.
https://www.bloomberg.com/news/articles/2022-06-23/wall-street-faces-billion-dollar-losses-on-sinking-buyout-debt
Stock price almost back at 100 bucks, so we’re good. Merger will go ahead as planned followed by an comprehensive assessment of the processes by the Hackett group.
Stock won’t rise to $104 unless people are buying it to drive up the price. Deal closes and tibco has to pay $104 for all remaining shares. If you want a 6% increase in profit then buy ctxs. If you want to close out this chapter of their demise you walk away.
Typical panic selling plus low liquidity
Bit of panic selling I think. Stock is back up to $95 now and will rise nearer to $104 as the acquisition closes.