we're talking about a couple of cents between market and implied value from BPT's price. the market knows this deal will happen, hence the market spread is tiny. no discount, no premium.
between now and feb, oil and index markets will move around and these two will move in lockstep. i doubt the spread will widen much. we've seen how well the price was controlled to close the historic premium. this will now be a massive arb opportunity for robots to scalp half cents here and there.
i just bought a lot of DLS in the 50's, so am more interested in taking that profit off the table today and just investing in the new entity, hopefully at lower prices if oil stays soft for a bit. i suppose i could sell DLS today and buy DLS back later. i think the risk is to the downside in the short-term and i've just seen a >50% profit
DLS Price at posting:
82.5¢ Sentiment: None Disclosure: Held
