https://preview.redd.it/qxo7zj3o4ux91.jpg?auto=webp&s=901fd25d0cac5ddf5acd9de92839e77dbf221c0a
States to block special ACI dividend payout. Stating Albertsons wont have Liquidity when the Kroger merger does not go through!
View Reddit by FATKEDLUVSCAKE – View Source
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Thats me! I AM SHAREHOLDERS!
Dividend? Wut dat?
>This is outrageous! Albertsons is clearly trying to take advantage of its shareholders by giving them a massive dividend payout while the company is in such financial trouble. This just goes to show how greedy and selfish corporations can be. I hope the attorneys general are successful in blocking this payment, and that other companies don’t try something similar in the future.
Wait.. ELIF here, how is this a bad thing if you hold Albertsons stock?
If the merger doesn’t go through, Albertson’s gets 600 million from Kroger. Read the 8k filing.
Not only that, but it’s more of a buyout than a merger. $KR gives $ACI $34.10/sh minus the $6.85/sh special dividend. That puts $ACI at $27.25/sh. It was close to that prior to the ex-div date. It dipped the day after to around it’s pre-announcement price where it still is currently. If you did the math and bought both sides then it’s a 30% gain or breakeven scenario. If you didnt buy the $KR dip then you didnt hedge your bet.
What would happen to options if the dividend gets blocked? The options before the record date became non standard options. Would this be reversed?