Preliminary results from Air Canada. SIB was slightly oversubscribed, purchase price of $18.80. Air Canada currently expects that shareholders who made auction tenders at or below the purchase price and purchase price tenders will have about 99.14% of their validly deposited Shares purchased by Air Canada(Excluding Odd Lot Tenders).
thanks for sharing. The tender offer price range is $18.50 - $21.00 CAD. Why the closing price today (5/27/2025) is 19.35 $CAD? People buying at 18.50$ or above could choose auction tenders to avoid tendering at a price lower than their purchase price, but they might end up losing the opportunity to tender as well.
In addition, the company announced the tender offer without providing a price range on 5/8/2025, and the share price closed at 18.39$ on 5/12, one day before the price range was announced. It seems somehow the buyers knew the tender price range before it was announced.
Share price moves for all sorts of reasons in the short term. when participating in a tender offer, I usually try to buy stocks below the lower tender offer price range to minimize risk of loss.
The management probably had a range in mind that they were willing to pay with the tender offer. They would probably set the price based on share price closer to announcement date.
Preliminary results from Air Canada. SIB was slightly oversubscribed, purchase price of $18.80. Air Canada currently expects that shareholders who made auction tenders at or below the purchase price and purchase price tenders will have about 99.14% of their validly deposited Shares purchased by Air Canada(Excluding Odd Lot Tenders).
thanks for sharing. The tender offer price range is $18.50 - $21.00 CAD. Why the closing price today (5/27/2025) is 19.35 $CAD? People buying at 18.50$ or above could choose auction tenders to avoid tendering at a price lower than their purchase price, but they might end up losing the opportunity to tender as well.
In addition, the company announced the tender offer without providing a price range on 5/8/2025, and the share price closed at 18.39$ on 5/12, one day before the price range was announced. It seems somehow the buyers knew the tender price range before it was announced.
Any ideas?
Share price moves for all sorts of reasons in the short term. when participating in a tender offer, I usually try to buy stocks below the lower tender offer price range to minimize risk of loss.
The management probably had a range in mind that they were willing to pay with the tender offer. They would probably set the price based on share price closer to announcement date.