Could you please provide your thoughts about Selling NA and Buying CWB?

Question

According to the agreement, one CWB (41.18) share will get 0.45 NA (107.77) share. It sounds like a too good deal to sell NA and use the proceed to buy CWB at current price. Since RBC buying HSBC gets through, this one seems easily to get through from regulatory agency.

Guy Dube · Answer

There is always a risk that the deal failed... CWB share value could drop by 20%+ if the deal is not closed... Also the deal is .45 NA shares/CWB... if NA shares decreased by 10%, you will have no margin of security and a smaller yield until the completion of the deal. I would wait, but if you want to buy few shares of CWB you can, but please do not sell all your position to buy cwb...