Hercules has agreed to be bought out by Ashland Inc.
The terms of the deal are as such; 18.60 in cash per share of Hercules as well as .093 shares of Ashland stock.
The terms of the deal make it difficult to get any absolute killer premium on the stock, but as the deal stands it is at 12% at the moment. the deal will be completed at the end of this year and is subject to a shareholder vote. many analysts believe the vote will agree on the merger.
But what makes me like this medium risk merger is the fact that both companies offer dividends. See my discussion about the advantages of Dividends in a bear market. Also, the resulting corporation will be a major global specialty company, which will probably see benefits of the merger almost immediately.
$19.99 (07/29/08)
