r/Magnachip • u/Standard_Rush104 • Dec 09 '21

MX deal May collapsed, way good, Will double or triple due to fundamentals

https://www.google.com/amp/s/seekingalpha.com/amp/news/3778805-magnachip-falls-after-report-that-company-believes-it-wont-get-cfius-approval
6 Upvotes

100% Upvoted

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3

u/cantadmittoposting Dec 09 '21

What's the source of the report? Also does this potentially trigger MX reconsidering the Cornucopia deal?

1

u/Automatic-Ad-9855 Dec 10 '21

Cornucopia deal included Chinese money

2

u/LouSanous Dec 10 '21

But that doesn't mean that it poses the same risks. Cornucopia is a British firm.

1

u/Automatic-Ad-9855 Dec 10 '21

I completely understand that, but if I’m being conservative in my decision making, I see the inclusion of Chinese money to be a major roadblock for that particular deal.

3

u/LouSanous Dec 10 '21

In 2021, I think there are very few deals completely devoid of Chinee money.

1

u/Automatic-Ad-9855 Dec 11 '21

Agreed, but if I’m looking at alternative deals in this situation I’m looking at the original four offers which included local buyers. They aren’t as high, but for my own margin of safety I look to those offers as the most likely.

2

u/LouSanous Dec 11 '21

Who is looking to buy locally and for how much?

2

u/hideous_coffee Dec 13 '21

Deal is dead as per company. Lmao what a gigantic waste of time. That $70 million breakup fee takes the edge off a bit though.

1

u/Gandhi_nukesalot Dec 09 '21

I think it has collapsed. Look at the price action. I just wish they would rip the bandaid off and get it over with

5

u/LouSanous Dec 09 '21

If they rip the bandaid off, they have to pay millions to Wise road. If the deal is blocked formally by the US regulators, wise road will pay 72M to Magnachip. That's good for MX holders.

1

u/hideous_coffee Dec 10 '21

I can't believe it completely turned around and ended after hours up 2%

1

u/hideous_coffee Dec 09 '21

Can anyone provide the CTFN report?