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Free money eh ?

As a PEP shareholder I thought I'd check the OAT board to see what their shareholders think of the possible deal. Well, nothing's wrong with your picture. Except that "free money" kind of implies cash & the PEP negotiations were for a stock deal.

Fairly significant difference, especially at this stage of the game. If a deal is struck (and $103 is a "lock") what will the PEP price basis be for the share exchange ratio ? Will there be any guarantee for OAT shareholders as to price of PEP ? The market has already closed the arbitrage gap quite a bit since Thursday.

If PEP overpays for OAT the market will adjust the price of PEP stock accordingly. Worse for me but unless OAT gets protection, eventually bad for you too.

I'd like to see the deal done (at a resonable price) and I'm glad that PEP management is actively searching for ways to grow. Here's hoping that we both come out ahead.

Sometimes the light's a shining on me - other times you can barely see... da DooDa Man
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