User 190518

Options Trader: Monday Outlook

This is one of the best blogs on the market as it stands now that I have read in the last 7 days. Keep up the excellent work.

Genuity Capital Expects BCE Deal to Close

My opinion is that there is some obstacle among the buyers preventing them submitting the revised documentation required by the CRTC. It probably relates to loss of equal control by the US buyers as ordained by Konrad Von Finckenstein. The request for a delay cannot be logically attributed to a logistical logjam at the buyers law firrms. They have teams available 24/7 for deals like this. The request curiously was sent at a very late stage to the CRTC leading me to conclude that the buyers were bargaining among themselves furiously hoping to reach a settlement up to the last possible moment.

My second worry is that the bondholders can drag this case on easily past November financing commitment deadlines by appealing to the Supreme Court. One month in our (in fact most) court system is the equivalent of the blink of a layman's eye.

Clearly there are still big hurdles. The Clear Channel deal looks like the banks will have to pay up. The BCE committed banks may be saved by either the CRTC or the bondholders protracted legal proceedings.