Disclosure: long-term holder of HZN.If its a bad deal for ROC,...

Disclosure: long-term holder of HZN.

If its a bad deal for ROC, then the ROC SP should go down; but

If its a good deal for HZN, then the ROC SP should go up, since you get .724 ROC shares for each HZN share.

If its a bad deal for ROC, then ROC SP should go up, as the proposed deal should tease out other advantageous takeover offers for ROC; but

The HZN sp has consistently traded at a premium to the merger ratio, suggesting that its more likely that a superior takeover offer may be made to HZN (ie the deal favours ROC).

My head hurts.

Either way its going to be difficult for either group of shareholders to make the case that their Board / Management has made a mistake as both companies have had a SP increase since the merger was announced.

Both groups of shareholders believe that their company has been grossly undervalued for an extended period, yet none of the "price catalysts" announced by either company over the past 2 years have had much impact.

The respective Boards will now be able to point to the scoreboard to validate their decision.