Hi Ant,
Thanks for your response. I think on Monday we saw CMM going up based on the first gut feeling of CMM shareholders, which told them that the deal would really value them at 0.4xWTG, whatever share price WTG would have at the potential date of the transaction.
Then, when CMM shareholders started to think about things a bit longer, they suddenly realised that there is a significant chance that, because of the sheer uncertainty that is built into this merger deal, the whole deal may not be applauded by shareholders, leading them to vote against. This once again would lead CMM to pay a $13.5M penalty, which is about $0.06/share. That penalty could be really bad for CMM and since shareholders do not like uncertainty, our share price is now going down.
So to conclude: the current share price does not show what the valuation of WTG should be - it rather shows what will happen if the deal is off. And that scenario is unfortunately not a positive one, which I am afraid we owe to CMM management who have clearly not thought this through very well.
