AT&T Inc (T)

[recinvestor]

Honestly, I'm not concerned one way or the other. I'm long T and TWX.

T offers a great dividend every quarter so I just sit on a position and collect.

Long term I love T, especially if the TWX acquisition goes through.

Based on terms of the TWX acquisition if it goes through, TWX shareholders will receive $107.50 per share which breaks down 50/50 cash and stock. $53.75 in cash, $53.75 in stock.

The stock portion of the deal is subject to a collar (controlling the price range).

If T's average price at closing of deal is below $37.411, TWX shareholders receive 1.437 shares of T for every TWX share they owned.

If T's average price at closing of deal is above $41.349, TWX shareholders receive 1.3 shares of T for every TWX share they owned.

Basically, it would be beneficial for TWX shareholders if T's price goes above $41.349, because if the transaction goes through, TWX shareholders will benefit from the higher price of T, as their average would be below.

Hope this makes some sense.

Go T and TWX
Rec