WTTR - Nuverra Stock Silliness: Stock Should Be Below $1.60 Based On Merger Agreement
- Select Energy (WTTR) announced its intention to buy Nuverra Environmental Solutions (NES) on Monday morning in an all-stock transaction.
- The exchange ratio is 0.255 WTTR shares for each NES share.
- Based on Monday’s closing prices, NES is priced well above its merger value, even though it declined 46% from Monday’s high of $3.40.
- Tiny chance of a higher bid, most likely explanation for wild NES trading is short-term irrational behavior.
For further details see:
Nuverra Stock Silliness: Stock Should Be Below $1.60 Based On Merger Agreement