What to Do With Nicor (GAS) merger?
by Tom
The recent news of Nicors purchase has left me with a problem. Should I simply sell Nicor at its all time high (52.95) or take the cash and stock deal offerd buy AGL? Under the terms of the agreement, Nicor shareholders will be entitled to receive for each share of Nicor common stock, $21.20 in cash and 0.8382 shares of AGL Resources common stock, which together represent a value of $53.00 based on the volume-weighted average price for AGL Resources common stock for the 20 trading days ended December 1, 2010 (the last unaffected Nicor trading day). Following the completion of the merger, it is anticipated that AGL Resources shareholders will own approximately 67 percent and Nicor shareholders will own approximately 33 percent of the combined company.
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