Topic: How To Invest

Stock Pickers Digest Hotline – Friday, October 7, 2016

Article Excerpt

CHEMTRADE LOGISTICS INCOME FUND, $18.31, symbol CHE.UN on Toronto, has now launched a hostile takeover bid for Canexus Corp. (symbol CUS on Toronto) by approaching its shareholders directly. Canexus produces and sells sodium chlorate and chlor-alkali products to the pulp and paper, water treatment, and oil and gas sectors. A friendly takeover has the approval of the company being taken over. A hostile takeover is a bid for a company where its management either opposes being taken over, or opposes the firm launching the takeover bid. In either case, the firm then takes its takeover offer directly to shareholders. Chemtrade has done just that: it is now offering Canexus shareholders $1.50 a share in cash for a total of $280 million. That’s up from its friendly takeover bid of $1.47 a share. Canexus management rejected that offer. It has also recommended shareholders reject Chemtrade’s latest bid. However, the offer of $1.50 a share represents a substantial 22% premium over the $1.23 a share Canexus traded…