where are the arbs?, page-3

Hi Troops,

My understanding is :

• Three large funds now hold ~25% of the issued capital
• Baytex needs 75% to get the deal across the line
• These funds are obviously agitating for a higher bid out of Baytex
• Baytex share price has gone up since the acquisition was announced which may enable them to use their scrip to sweeten the deal
• The flipside (and the reason why the share price has fallen) is that if Baytex don’t get the 75% and pull the bid the view is that the stock would open lower by 25-30%

Sold the bulk around $4.10 however am still holding 125K shares and will continue to take the punt.