CBS Corporation Exchange Offer with Odd-Lot (~$450 Opportunity)

Posted on June 13, 2014 by admin
  • 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.
This entry was posted in Odd Lot Tender Offers. Bookmark the permalink.