Saturday, January 19, 2008
countrywide deal not sealed yet
takeovertakeunder is valued at $6.47 per share, but Countrywide is trading at only $5.11. How come? Well, have a look at the MAC clause (a/k/a section III 3.8(a) of the merger agreement), detailing the representations and warranties made by Countrywide...
there's skepticism in the market -- salmon himself notes that it's widespread. the $64 question: is it transient selling pressure from delevering arbitrageurs in the midst of a waterfall selloff? or is it an aggregate bet that bank of america won't close a deal that many had to justify by implying government pressure and aid?