AT&T Breaks Below DTV Merger Band

AT&T ($T) is down 90 cents per share today to $33.60. That’s also below the DirecTV ($DTV) merger band.

To recap, the merger deal calls for:

DIRECTV shareholders will receive $95.00 per share under the terms of the merger, comprised of $28.50 per share in cash and $66.50 per share in AT&T stock. The stock portion will be subject to a collar such that DIRECTV shareholders will receive 1.905 AT&T shares if AT&T stock price is below $34.90 at closing and 1.724 AT&T shares if AT&T stock price is above $38.58 at closing. If AT&T stock price at closing is between $34.90 and $38.58, DIRECTV shareholders will receive a number of shares between 1.724 and 1.905, equal to $66.50 in value.

At this point, it basically means that DTV is worth $28.50 plus 1.905 shares of AT&T. With today’s drop, that makes the deal worth $92.51 for DTV.

Posted by on October 23rd, 2014 at 11:06 am


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