Angies List - Stock trades above buyout amount

M

Mugono

Hello, this is the first time i've seen this. Would really appreciate some insight what has caused this (or any other e.g.s where this has occurred)

When i've seen these in the past, the stock trades UNDER the agreed buyout level not nearly $1 over the price !

When I last checked:

ANGI's current price: $9.48 p/s
Buyout price: $8.50 p/s

I did look to the option market to see if there was a way to lock this in... but

1. spreads are super wide
2. synthetic is trading around current price (not buyout price) ignoring cost of carry.

E.g re 2, the May 10 strike synthetic (+p - c) is pricing Bid: 0.4 Ask: 1.0

Thanks for reading
 
thanks for responding SoesWasBetter. From what I can tell, there was a choice between either stock or cash (the cash alternative = $8.50). I understand/note the point that if it was all stock or a combination of the cash/stock that the final price would fluctuate as the stock component changed.

By valuing the stock so much in excess of the pure cash alternative, is the interpretation that the market is valuing the stock alternative as much more valuable than taking the cash correct?
 
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