- Equal Energy entered into a definitive agreement to be acquired at $5.43. With two weeks left until the effective merger date shares are trading at $4.75.
- Investors seem to be overly concerned with a possibility of a merger failure and do not recognize the upside from the other competing bids and proposals.
- At current share price levels investors are likely to realize upside potential of at least 15%-25% in a few weeks or a more optimistic 70%-180% upside by year end.
- The downside risk is minimal due to competing bids and alternative proposals to increase shareholder value.