9 per share sounds right! It's a a fraud.
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If we file. We'll be too fine. We're too big to fail guys. Remember we'll get a bail out. So don't sweat it. Worse case scenario - mitt romneys team Bain takes us over and fixes us then runs for president with Martin craighead as his vp. We re-invade Iraq and get the no bid contract for oil services for all of the Middle East. See how that works ? History repeats itself. Oh and happy back to the future day !
If the deal falls through, BHI gets a cash injection of $3.5B from HAL. Right now, BHI stock price is $53.17 and HAL is $37.68. If the deal does go through, one share of baker turns into 1.12 shares of HAL + $19 cash. If you do the math, that's $61.20per share of BHI at current value. If the deal falls through versus closing today, shareholders would effectively lose 13%.
Why do you think a 13% loss would cause BHI stock to tank 72%? If you factor in the 3.5B in cash, versus the original $34.6B valuation of the deal, that's 10% recovered cash right there. If you take into account the reduction of assets and talent BHI has been implementing, the current value is probably more like $17B. So 3.5B would be 20%.
If the deal falls through, the BHI stockholder actually comes out ahead! Since they effectively control the stock price by buying/selling, there's no reason it should go down.
The media, HAL and BHI execs want you to believe it would be catastrophic for the deal to fail, because they stand to lose if it does. BHI and HAL exec teams will be gone, plus they'll lose most of their payouts due to them at closing. The media is for big government control, and both BHI and HAL are textbook crony companies. Making a bigger crony company is easier to control than two independent ones.
Executive management will certainly have a plan for management but not necessarily a plan for BHI ...golden parachutes versus golden showers..!
I can tell you for sure that management has a plan. This is why the CEO makes the same salary as Payton Manning.
If the deal does fail BHI stock will fall to ~$15 (a more realistic figure based on the financial report). HAL will face a penalty of $3.5billion but could then pick up BHI for a quarter of the $34billion it was going to pay. It may do even better because BHI would be broken up and HAL could cherry pick the pieces that it wants. However, I'm sure BHI executive management have thought through all these possibilities and have a plan.
Bankrupt? What are you smoking? BHI isn't WFT and won't be even if the HAL deal fails to happen.
I hope i get laid off soon and get me severance package cause this ship is sinking and im ready to get the F_#% off
Next is : F-cking stage...All BHI staff will be f-cked.