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It looks pretty normal to me Carl. There is a 5% discount to the
deal price which is minor considering there are still regulatory
hurdles and a law suit pending by a large shareholder claiming the
price is too low and unfair to investors. Also, the close could be
out 6 months according to press releases so one is getting a hoped
for 5% return on a six month investment. You could have received 1/2
that in a CD without any risk, so all in all, everything looks pretty
normal to me for a deal with no white knights on the horizon.
Bob
At 07:05 AM 12/28/2007, you wrote:
>Gents,
>
>I rarely asked for advice but this time am a bit confused and feel
>stuck in an option position turning odd:
>On Dec 21 after seession close there was an official annoucement that
>GLDN (Gold Telecom) would be purchased by VimpelCom at a price of
>$105. Tender to commence on Jan18 or before. At the time price was at
>103 and this is why I decided to purchase the stock (1000 GLDN) while
>at the same time selling 10 PUT Jan100 and 10 CALL Jan105. My
>expectations was that the stock would quickly jump to 105 and stay
>there. So I would benefit from the stock bought at 103 ($ 2,000) and
>wait for the expiration of both PUT and CALL on Jan18 which would
>normally expire valueless.
>I got 0.65 for the PUT and 0.50 for the CALL on Dec 24 and bought the
>stock 102.35.
>But the problem is that the stock is since then dropping steadily and
>now at 99.35!!
>How is that possible as the stock has been offered $105 a share ??
>Are some of you guys familiar with this situation? What would be your
>best advice here? I feel like I want to close out everything now but
>not sure this is the wisest thing to do.
>
>Thanks by all means.
>
>Carl
>
>
>
>
>Yahoo! Groups Links
>
>
>
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