Vincent Fernando

CEG Parts with Buffett without Shareholder Approval

This is complete speculation, but the sell-off could have been due to M&A arb funds unwinding, as the stock would no longer fit their mandate. But it could have also fallen due to other concerns as well. It would be hard to know for sure. But this could be a potential reason, at least.


On Dec 18 09:08 AM MILESCFA wrote:

> "Shareholders were nevertheless likely to be overall positive on
> the deal given previous opposition to the MidAmerican $26.5 bid as
> being too low."
>
> That's what I thought but the stock sold off hard, an expensive lesson.
> What I did not anticipate is that as part of this deal, the rating
> agencies would downgrade the company and CEG would cut it's dividend.