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-0.000405338606030581 0 0.00197726149283238 0.000988630746416192 0.000494315373208184 -0.000494315373208008 -0.000494315373208008 -0.000494315373208008
Stock impact report

Fidelity's Acquisition Of FGL: There Is A Downside Potential [Seeking Alpha]

F&G Annuities & Life, Inc. (FG) 
Last f&g annuities & life, inc. earnings: 2/26 04:15 pm Check Earnings Report
US:NYSE Investor Relations: cfcorpandfidelity.com
Company Research Source: Seeking Alpha
SummaryOn February, 7, 2020, Fidelity National announced an agreement to buy FGL Holdings. Shareholders may elect to receive, for each share, either $12.50 in cash or 0.2558 shares of FNF common stock.Given the stated share/cash split, FGL shareholders appear set to receive ~$7.70 per share. On this basis, there is downside potential of 24% in FGL stock.The merger agreement is subject to several standard conditions, including the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and obtaining the approval form FGL shareholders.Remember that the company contacted potential bidders in a go-shop period. If other potential bidders did not want to buy the FGL, they may not do it now.I would expect the share price to drop from ~$10 to less than $8, and believe investors are best served to liquidate their positions right now. I will not wait for the acquisition to close.Editor's note: this article was amended on 4/23/2020 to reflect the correct tickers for the involved co Show less Read more
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