So, despite not really feeling at least some of the motivation(s?) I tend to like to feel when I'm writing something here, since it's new years (or still plausibly close enough, particularly if you are chinese) I've decided to try to keep posting here more regularly, if only as an excercise in good (or at least plausibly close enough, particularly if you read at a third grade level) writing.
So, let's talk business news.
I'm confused.
I read an AP article today about the acquisition of supermarketeer Albertsons by a conglomerate of other interests. (Interestingly enough, I had just been looking at their stock last friday, which is no doubt why the article caught my attention) Anyhow, let me excerpt:
(emphasis mine)
Here's my question... wouldn't you think that the prospect of twenty-six dollars in cash PLUS a share in the acquiring company would tend to push the value of their stock... oh, I don't know... ABOVE TWENTY SIX DOLLARS???
So why is it that as of market close on Tuesday, Albertsons stock had fallen to around twenty five dollars a share?
I have to conclude that there is something I am missing here... is it that this deal is not finalized, and risks the same sort of fall through as the one of a month ago? The tone of the article seems to suggest a certain definitive nature to the conclusion of the negotiations this time, but perhaps I'm reading too much into it.
Market gurus are encouraged to forward me their explanations, along with their "more hot tips" for the coming month. Just no recommendations of Nigerian crude oil futures please.
So, let's talk business news.
I'm confused.
I read an AP article today about the acquisition of supermarketeer Albertsons by a conglomerate of other interests. (Interestingly enough, I had just been looking at their stock last friday, which is no doubt why the article caught my attention) Anyhow, let me excerpt:
Minneapolis-based Supervalu and the drugstore chain CVS Corp. led an investment group that said Monday it will buy Albertson's for $9.7 billion in cash and stock. The group made a similar attempt to buy Albertson's about a month ago, but the deal collapsed.
Albertson's stockholders will get about $26.29 in cash and Supervalu stock for each Albertson's share. The buyers are also assuming about $7.7 billion in debt.
(emphasis mine)
Here's my question... wouldn't you think that the prospect of twenty-six dollars in cash PLUS a share in the acquiring company would tend to push the value of their stock... oh, I don't know... ABOVE TWENTY SIX DOLLARS???
So why is it that as of market close on Tuesday, Albertsons stock had fallen to around twenty five dollars a share?
I have to conclude that there is something I am missing here... is it that this deal is not finalized, and risks the same sort of fall through as the one of a month ago? The tone of the article seems to suggest a certain definitive nature to the conclusion of the negotiations this time, but perhaps I'm reading too much into it.
Market gurus are encouraged to forward me their explanations, along with their "more hot tips" for the coming month. Just no recommendations of Nigerian crude oil futures please.
