CBS Corporation Exchange Offer with Odd-Lot (~$450 Opportunity)
- Company: CBS Corporation
- Ticker: CBS
- Market Cap: ~$35bn
- Size of Action: ~$3bn
- Type of Transaction: Exchange Offer with Odd-Lot Provision
- Current Price: $60.88
- Exchange Price: CBS shareholders are expected to receive $107.53 of CBSO every $100 of CBS tendered.
- Potential Gain (%): ~7.5% (exchange rate may vary, based on VWAP of both stocks)
- Expiration: 12:00am EST on July 9, 2014
- Tender Limit (Shares): 99
- Max Investment ($): ~$6,027
- Max Gain ($): ~$450
- Sec Filing: Link
- Summary: CBS Corporation is offering to exchange up to 97mm shares of CBSO for shares of CBS. The exchange rate is subject to the average of the daily volume-weighted average prices on July 7-9. Importantly, the exchange rate will incorporate a 7% discount to encourage shareholders to tender.
- Odd Lots: ...If the exchange offer is oversubscribed and CBS cannot accept all tenders of CBS Class B common stock at the exchange ratio, then all shares of CBS Class B common stock that are validly tendered will generally be accepted for exchange on a pro rata basis in proportion to the number of shares tendered. We refer to this as “proration.” Stockholders who beneficially own “odd-lots” (less than 100 shares in the aggregate) of CBS Class B common stock and who validly tender all their shares will not be subject to proration (other than participants who hold odd-lot shares as a participant in the Savings Plans)...
- Market Neutral Option: One can short can equal amount of CBSO shares to 'lock-in' your 7.5% gain and not be subject to the market movement of CBS.
- All information contained on or available through this Web Site (“the Content”) is for general information purposes only and does not constitute any investment advice.
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