I have a small interest (big for me) in WRK. They are going through a merger set to complete July 7th.
I noticed that their short % has gone up exponentially today, which has led me to questions.
Details: WRK should open at about $52 today from what I’m seeing.
Merger terms will be 1 share of WRK will get the owner 1 share of new WestRock Smurfitt Kappa stock (remaining WRK in the S&P500) +$5 per share.
If someone were to short WRK prior to the acquisition: would they owe for a position on shares alone or shares +$5 per share?
New stock is set to be valued lower than WRK currently. So if the cash is not included in the short could be a good option?
Someone with some expertise on shorts weigh in?
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