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Allison Transmission Faces Risks and Costs Amid Potential Acquisition Failure

Allison Transmission Faces Risks and Costs Amid Potential Acquisition Failure

Allison Transmission (ALSN) has disclosed a new risk, in the Corporate Activity and Growth category.

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The potential failure to complete the Acquisition poses a significant risk to Allison Transmission, as it could adversely affect its business operations and stock price. The company may face negative reactions from financial markets, customers, suppliers, and employees, which could lead to a decline in market share and hinder strategic initiatives. Additionally, Allison Transmission would incur substantial costs related to the Acquisition without reaping any benefits, and might have to pay a termination fee to Dana if the Purchase Agreement is terminated under certain conditions. These factors could collectively impact the company’s ongoing business and operational results.

Overall, Wall Street has a Hold consensus rating on ALSN stock based on 1 Buy, 1 Sell and 4 Holds.

To learn more about Allison Transmission’s risk factors, click here.

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