By Phil Boeyen, ShareChat Business News Editor
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Tuesday 23rd October 2001 |
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Contact says it will release on Friday its unaudited results for the year ended September. Analysts have been picking a bottom-line profit of over $100 million.
Edison Mission is offering $3.85 a share but the energy company's stock has been trading 15 cents above that on Tuesday morning at $4.00 a share.
Edison Mission was quick to quell any suggestions that it was underbidding the company when it first announced its offer, claiming it had already paid a premium for control when it bought its first tranche of shares at $5.00 in 1999.
Shareholders will also be keen to see what kind of final dividend Contact plans to pay. If the Edison takeover goes ahead, sellers will not be eligible for the payout.
There's considerable market sentiment that Edison Mission's offer is on the low side and it will be forced to stump up with more cash, however many of the original small investors may be happy to book a profit on their original investment price of $3.10 per share.
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