Ann: M&R Proposal to acquire Clough at $1.46 per , page-12

re: Ann: M&R Proposal to acquire Clough at $1... Hard to say what is best course of action- all depends on individual trading style.
Due diligence just means they have allowed themselves some more time to go thru all the co affairs so they are sure of the info on which they have based their offer.
This means risk. Market pricing accordingly ie., outlay $1.42 , get $1.52 in about 2 months.
Say interest is max 2 cents, balance 8 cents due risk.
In case of Clo, offer is from a major shareholder so risk is low; however if anything does go wrong then price drops to $1.10 or lower.
So upside limited to 10 cents;
downside is probably higher than 40cents.
Again market is pricing the odds as approx 4 times more likely to go ahead - just a rough way of looking at it.
As time progresses will trend towards the offer price.
And if unlucky, drop to 1.10 within 1 hour!
Hope this helps, good luck,