Cabot / Cimarex

[sundance]

To take advantage of the upcoming merger of Cabot and Cimarex -- will it be more advantageous to buy Cabot or Cimarex?

[Fraser921]

Based on trading prices: as of Friday's closing prices COG was the better buy

The exchanged ratio is 4.0146 cog per 1 xec so ( 4.0146*cog closing price 15.72) = $63.11.Since Xec closed at 63.75, buying COG direct is less expensive at 63.11.

This calculation doesn't account for any dividends the two companies would make pre merger

[dan_s]

Since there is a 99.9% chance that the merger closes at the end of September, the share prices should be trading in lockstep.