As we get closer to the deal actually going through, the difference between what the stock is selling for and what it's actually worth should be getting smaller. Instead, in the case of Baker Hughes, the gap between what the stock is selling for and what it's actually worth has only been widening. A widening in this spread is a sign investors see growing risk that the transaction will not be closed. Wall Street traders might be selling the stock cheap because they don't think the merger is going to happen. So that's not a good sign.
6 replies (most recent on top)
You guys are idiots. If the deal fails then BHI banks with something like 4 billion. Kinda hard for a business to go belly up with that kind of payday
You are right about one thing. Stock trading is legalized gambling. Now it is only one algorithm betting against another algorithm as to whether the deal will go through or not. Either way, BHI is over.
Not even close to deal closing. If approved and I mean if you looking at the earliest first quarter 2016.
If i were a buyer, I'd want pieces.
Inteq in - sperry out - just sayin what y 're tninkin'
And if the deal does fall through I wonder if BHI will survive for long. After the stock price plummets will someone else make an offer for 1/2 what HAL agreed to or will BHI sell itself of in pieces.