johnnysize

Procter & Gamble Plans to Sell Folgers to Smuckers: Win-Win?

Ok folks... here u go. For every 100 shares of PG u own u will recieve 1.14x pg/sjm - that ratio is about 1.6 shares right now. So 1.6 x sjm gives u a value in PG about 8 dollars higher. So effectively, If u exchange your PG u will end up with SJM at a discount to where it trades, or a premium to PG...however u want to look at it. The problem is this... you will not recieve the full 1.6 shares because it is subject to proration(which could be as little at 3%) and the 1.6 shares is not fixed. It will be determined on a 3 day averaging period 2 days before the closing of the exchange (Nov 5th). Also, there is a cap on the trade of 1.7213 shares as to protect the market from simply jamming SJM down too far and jacking PG to the moon. Leave this one to the pro's unless you own less than 100 shares because I do believe odd lot shareholders will NOT be prorated.