A misjudgement

Earlier this year I got into a position in a Canadian power generation company called Boralex Income Fund(BIF). Boralex, the company out of which BIF was spun out of in 2002 made a takeover bid for BIF in May. The bid grossly undervalued BIF's assets, but as the companies were closely linked operationally and Boralex already held a quarter of BIF's outstanding units I assumed that the takeover attempt would be successful and so I sold my position in May(see earlier post). My assessment was wrong and Boralex has been able to get the acceptance of only 68% unitholders in spite of improving the offer twice by increasing the interest rate of the offered debentures and lowering the conversion price.