Citi has commented on the extension of the put-up-or-shut-up bid deadline for Keywords Studios PLC (AIM:KWS, OTC:KYYWF), indicating it is a mixed outcome.
While the extension suggests that the previously announced £25.50 offer is likely to proceed, it also points to complexities in the due diligence process, which was expected to be straightforward.
Despite these complications, Citi remains optimistic about the deal's completion, adjusting its price target to £23.15 to reflect an 80% probability of success.
This is higher than the current market-implied probability of 72%, suggesting a positive risk/reward scenario.