"KERRY Stokes's bid to merge Seven Network with his private mining and industrial equipment business WesTrac has received a shot in the arm with fund manager Mackenzie Cundill backing the $3 billion deal. "
Peter Cundill is a famous value investor. Ocasionally know as the Warren Buffet of Canada. http://tinyurl.com/ybyfznz
I am suprised that they are in favor of the deal but given a little more thought I guess: * Cundill is playing this as a merger arbitrage type transaction. * Cundill is going to sell SEV shortly after the transaction and is supporting it simply because of the likely "share price" appreciation rather than the increase in actual value versus risk. * Cundill was in this in the first place because of the disount to cash backing.
Watch if Mackenzie Cundill sells soon after the deal goes through.
SEV Price at posting:
$7.42 Sentiment: LT Sell Disclosure: Not Held
