I think downer overpaid by about $500m, if you look at that on a diluted per share basis, its probably about 0.80 per share.
Downer is looking at an ex-rights price of $7, subtract the $0.80 from paying too much and we get a $6.20, which could be a theoretical ceiling price. Its reported that the rights issue is struggling at $6 which further supports that.
I think in practice the share price should go below $6.20 due to increased risk of debt, integrations issues, risks internal to spotless, and damage done to the reputation of downer managment.
I think at a bit of guess $5 could happen within months, still not sure im willing to put money on it and short it though...
Wow - a mega disaster in the making, page-16
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$5.78 |
Change
0.060(1.05%) |
Mkt cap ! $3.626B | |||
| Open | High | Low | Value | Volume |
| $5.78 | $5.88 | $5.77 | $3.584M | 617.4K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 8576 | $5.78 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $5.80 | 9210 | 3 |
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