On May 31th, just ten days from now, the Special Meeting of Chariot Resources (CHD.to) shareholders takes place to approve the sale of the company to China Sci-Tech. The price of the sale is $0.67 per share and under normal circumstances of a buyout, the arbitrage between the open market price of the company to be taken over and the sale price closes as the big day approaches. Indeed, in recent weeks CHD.to stock has traded at a solid 65c, with 66c shown on occasion, too.
So why, all of a sudden, is CHD trading weak?
The current 63c provides a decent 6.35% arbitrage upside (pre-commish, of course) to the nominal 67c sale price to China Sci-Tech. It’s kinda strange to see it go weak this late in the day, isn’t it? What’s that old one about brides and altars they use in the bizworld again…..?