Amcor looks oversold and we expect to see a rally back to $14.00 over the next 8 weeks.
Amcor announced a proposal to acquire Bemis in August, when the deal was valued at about $9 billion.
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Bemis operates 56 packaging plants in 12 countries but most of its operations are in the USA; Amcor operates 195 packaging plants in 43 countries.
Amcor will shift its main share-market listing to the New York Stock Exchange in the all-scrip buyout, which would make it the world’s largest plastic packaging group.
It will ditch the ASX as its primary home, but still intends to give Australian shareholders exposure through Chess Depository Interests on the ASX.
We expect hedge funds to begin unwinding their short AMC long Bemis position which will create added buy-side demand into the market for AMC shares.
Amcor
