Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, January 31, 2020

Article Excerpt

CINCINNATI BELL, $13.71. symbol CBB on New York, is primarily a regional provider of residential and business Internet and cable TV services. It reaches more than 1.3 million homes in Ohio, Kentucky, Indiana and Hawaii with its fibre broadband, video and voice services. The company is currently undergoing a transformation to upgrade its network to next-generation fibre, which will fuel the growth of 5G mobile technology. On December 23, 2019, Canada’s Brookfield Infrastructure Partners L.P. (symbol BIP.UN on Toronto) announced an agreement to buy the Ohio-based company for $2.6 billion, or $10.50 per share. However, on January 24, 2020, Cincinnati Bell received an unsolicited offer of $12 a share from another unnamed infrastructure fund. Although the agreement with Brookfield remains in effect, Cincinnati Bell has commenced discussions with the new bidder. Brookfield Infrastructure has yet to comment on the second bid for Cincinnati Bell. Still, shares of Cincinnati Bell now trade above the latest $12 offer. That indicates investors are expecting a higher bid. OUR…