Manitoba Tel - Closes at $40.37, Anyone Surprised?

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tony767p
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Manitoba Tel - Closes at $40.37, Anyone Surprised?

Post by tony767p »

Hello all,

Apologies in advance for the following potentially dumb questions...

As a holder of MBT since 2009, I note that it closed Friday at 40.37 which is above the BCE offer price of $40. Not sure why, but I'm vaguely surprised.

I telephoned TDDI with my disposal instructions (cash) as instructed back in January.

Now that the transaction has closed, does anyone know when the payout will take place? My cursory search reveals nothing.

If it drags on for a while, can I place a sell order online with TDDI (if it stays above $40), and claim the rights of "snooze, you lose" when BCE finally gets around to me?

My first takeover experience, hence all the questions.

Thanks in advance for the collective wisdom here, cheers,

Tony
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Re: MBT closes at 40.37, anyone surprised?

Post by Sensei »

Hello,

I own BCE shares. If I had owned MBT shares, I would have opted for 100% stock. You'd be getting one of Canada's bluest of the blue chip companies. It has a dividend yield of about 5%. The dividend has increased every year at least for 15 years. I'm showing a capital gain of 126% over 7 or 8 years. Also, by accepting shares, you avoid any capital gains tax.

Anyway, sounds like you've burned your bridges there.
Cheers

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tony767p
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Re: MBT closes at 40.37, anyone surprised?

Post by tony767p »

Hi Sensei,

Yup, you're right, bridges are burned, so, moving forward, the question remains, wait for BCE to come with cash, or sell now to highest bidder?

My shares are in a registered account, so no Capital Gains.

According to my calculator, after Friday's nice pop to $58.30, BCE's offer of .6756 share for each MBT share, would equate to about $39.39 per share, so I'd be happy to let them go for $40.37, but is that legit?

Again, I appreciate the collective wisdom here, cheers,

Tony
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Re: MBT closes at 40.37, anyone surprised?

Post by AltaRed »

Sensei wrote: 18 Mar 2017 22:01 You'd be getting one of Canada's bluest of the blue chip companies. It has a dividend yield of about 5%. The dividend has increased every year at least for 15 years. I'm showing a capital gain of 126% over 7 or 8 years.
Except BCE needs to stop growing its dividend for awhile. Both it's dividend payout ratio and debt load is high. A material increase in interest on debt will hurt a lot. The primary thing keeping me in BCE is it still has a double digit ROE/ROCE. If/when that falters much further, I will be 'out'.
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Re: MBT closes at 40.37, anyone surprised?

Post by Sensei »

tony767p wrote: 19 Mar 2017 10:44 but is that legit?
Tony
You could always try to put in a buy order and see what happens. If it is not possible you'll know soon enough.
Cheers

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tony767p
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Re: Manitoba Tel - Closes at $40.37, Anyone Surprised?

Post by tony767p »

Question has gone moot - opened below $40 today, now trading at 39.77.

I snooze, I lose. Sigh.
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Re: Manitoba Tel - Closes at $40.37, Anyone Surprised?

Post by Peculiar_Investor »

Market makers and professional merger arbitrage investors usually play an active role in these types of situation and I'd find it hard to believe for large companies like BCE and MTS that there would be any scraps left over for the retail investor to profit from the situation.
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Re: Manitoba Tel - Closes at $40.37, Anyone Surprised?

Post by minimalist »

Still waiting for my cash from BMOIL for MBT....

I thought this deal was supposed to close on March 17 but it is now March 25 and my BMOIL account is still showing my MBT shares. Sent them a message 3 days ago but no reply.
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Re: Manitoba Tel - Closes at $40.37, Anyone Surprised?

Post by AltaRed »

As I understand it, it can take circa a week for changes to be noted in brokerage accounts. Probably a result of the work effort undertaken by the transfer agents than the brokerage itself. I believe that all folks like BMO IL do is post what is given to them from external sources. Somewhere else, I saw a note from someone in another forum say that they saw the data in their TDDI account yesterday. Be patient.
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Re: Manitoba Tel - Closes at $40.37, Anyone Surprised?

Post by minimalist »

AltaRed wrote: 25 Mar 2017 13:08 As I understand it, it can take circa a week for changes to be noted in brokerage accounts. Probably a result of the work effort undertaken by the transfer agents than the brokerage itself. I believe that all folks like BMO IL do is post what is given to them from external sources. Somewhere else, I saw a note from someone in another forum say that they saw the data in their TDDI account yesterday. Be patient.
Thanks. I just wanted to get this cash to work right away.
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Re: Manitoba Tel - Closes at $40.37, Anyone Surprised?

Post by tony767p »

Yup,

TDDI showed the disposition and acquisition transactions on Mar 24, fwiw.

Cheers,
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