Merger Arbitrage Mondays – April 04, 2011
Merger activity increased last week with six new deals announced and four deals closing.
I received an email over the weekend from someone who was new to the Merger Arbitrage strategy and wanted to learn more about it. I pointed him to my article on the Pfizer – Wyeth deal, which provides an introduction to the strategy for the uninitiated. I would also recommend reading the article John Paulson On The “Risk” In Risk Arbitrage by the folks at market folly.
Deal Statistics:
New Deals:
- The acquisition of Verigy (VRGY) by Advantest (ATE) for $1.1 billion or $15.00 per share in cash. Verigy announced the Advantest offer in December but the deal was finalized last week.
- The acquisition of Rural/Metro Corporation (RURL) by Warburg Pincus for $17.25 per share in cash. I had traded Rural a couple of times over the last year based on insider purchases by the CEO as you can see here.
- The acquisition of GSI Commerce (GSIC) by eBay Inc. (EBAY) for $2.4 billion or $29.25 per share in cash
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