KWD tender offer case

**zhang242463** Tue Feb 12, 2008 12:44 pm

KWD tender offer case
see the press release. Currently KWD is trading at 20.97 with buyout at 21$. Those who hasn't tendered the share will not receive 21$ until a few month later when merge is completed. This looks like a short opportunity as tomorrow, the stock will drop to 21-2month worth of interest, which is likely to be 2%.

http://biz.yahoo.com/bw/080212/20080212005784.html?.v=1

**blast_investor** Wed Feb 13, 2008 2:30 pm

It looks like your short play does not work as planned.

Tender offer got 90% of shares, and now it enters into merger.

Today stock price rose more than $21 per share, probably due to short covering.

**zhang242463** Wed Feb 13, 2008 4:00 pm

I think the short is forced to cover because the shares are tendered in. If someone short a stock that is tendered, he is forced to cover it.

blast_investor wrote: It looks like your short play does not work as planned.

Tender offer got 90% of shares, and now it enters into merger.

Today stock price rose more than $21 per share, probably due to short covering.