A Somewhat Curious and Smallish Revision to Merger Terms 

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

CK Infrastructure Holdings / Event-Driven

<p>"The all-stock offer from Li&rsquo;s Cheung Kong Infrastructure for affiliate Power Assets Holdings should be as much as 13 percent higher" Institutional Shareholder Services said in a report on Monday, 9 Nov 2015.&nbsp;</p><p>In addition, Glass Lewis has called for "materially improved terms...CKI have failed to offer PAH shareholders a particularly persuasive value narrative...PAH is viable as a standalone enterprise"</p><p>Given that a&nbsp;6.11% vote against would kill the deal, without an increase in terms, we believe this deal is in jeopardy. If fact, it doesn't appear to us that it is in many investors' interest to approve the deal 'as is'</p><div class="message show_user avatar divider" data-ts="1447141178.000479"><em>The most likely scenarios are: 1) A bump in the offer and deal completes 2) Deal Break</em></div><div class="message show_user avatar divider" data-ts="1447141178.000479">&nbsp;</div><div class="message show_user avatar divider" data-ts="1447141178.000479"><em>We see an asymmetric risk-reward situation here.</em></div>

"The all-stock offer from Li&rsquo;s Cheung Kong Infrastructure for affiliate Power Assets Holdings should be as much as 13 percent higher" Institutional Shareholder Services said in a report on Monday, 9 Nov 2015.&nbsp;In addition, Glass Lewis has called for "materially improved terms...CKI have failed to offer PAH shareholders a particularly persuasive value narrative...PAH is viable as a standalone enterprise"Given that a&nbsp;6.11% vote against would kill the deal, without an increase in terms, we believe this deal is in jeopardy. If fact, it doesn't appear to us that it is in many investors' interest to approve the deal 'as is'The most likely scenarios are: 1) A bump in the offer and deal completes 2) Deal Break&nbsp;We see an asymmetric risk-reward situation here.

CK Infrastructure Holdings

Heads I Win; Tails You Lose