WSP Holdings: The Deal Is Running Out Of Time Again
- WSP Holdings does not have enough time to close the revised merger deal before the outside date of May 31st.
- The fundamentals of WSP Holdings remain very weak and the company fails to timely file annual report again. The corruption investigation of PetroChina could heavily impact the company.
- The new acquirer could walk away for free if the deal does not close by the outside date, and we think it is rational for him to do so.
- We recommend a short position in the stock given the attractive risk-reward ratio.