to twog or not to twog

randomlight said: "I don`t get it.International Energy (ILGY) is buying Transworld Oil & Gas (TWOG). ILGY announced on the 15th of March that "Each Transworld Oil & Gas (TWOG) shareholder will receive one (1) share of International Energy, Ltd. (currently .65) for every ten (10) shares of Transworld Oil & Gas (currently approx .02)". Shareholders of record on March 25, 2006 are expected to receive the dividend by the second week of April 2006. Now I am pretty new to all this but the math works out pretty good. 10 x .02 = .20 to be traded for what is currently a .65 share. Could anyone tell me what is wrong if anything with this picture ?"

pt0872 said: "I'm very new to this site...but do read alot and I do work in corporate actions. Did it say anything about proration rates? Usually at this rate there isnt proration....is it a cash/share merger? you may be receiving cash entitlements for the difference. Just a few options...."