Originally Posted by
CincoDeMayo
Basically, yes. Unless you’re day trading it doesn’t matter as we march to an ultimate decision and outcome. The merger can be approved and NK stock goes to $32 overnight, did NK suddenly become profitable and problems are gone? Must be, their market cap just increased 4x. Haha. Nope.
But using your logic, NK is worth more than JBLU based on your market cap assessment.
NK market cap is where it is in hopes JB does come through and grossly overpays to retire NK stock. As you said, NK valuation would be significantly less if it wasn’t for this potential windfall. Next, JB has to finance that debt at market rates which is significantly higher now than it was when JB put this deal together. Likely least of 2 evils is to cut the 400M check and run away.