$74.51
0.00 (0%)
Fording Canadian Coal Trust (USA) (NYSE:FDG.DL)
CAPS Rating:
The Company is an open-ended mutual fund trust. The Trust makes directly and indirectly owns all of the interests of Fording LP. It uses the cash it receives from its investments to make quarterly distributions to its unitholders.
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Just acquired at at a 12% premium. CAPS does not let your properly structure an arb oppurtunity, but you can still bet on the merger being completed.Basic details:Teck Cominco (TCK) is acquiring Fording Canadian Coal Trust (FDG) for $82.00 cash and 0.245 shares of TCK for each sahre of FDG held. At the time I write this pitch that works out to $98.87 per share. (82 + 0.245*45.20). Which is just over a 12% premium. Thats a nice little CAPS gain for a 3m or so turn around. (Assuming the deal goes through and TCK doesn't tank).
That's assuming CAPS gives you credit for the TCK premium. Since CAPS point-based rather than dollar-based, I wouldn't expect to see any benefit to the 0.245 shares of TCK being scored in CAPS.When FDG closes, CAPS would likely end it at a price of $82.00, which is below your $87.25 starting price.I ended my FDG pick on here for that reason when the purchase was announced.