Merry Christmas and Happy Holidays from the team at InsideArbitrage.
We had expected merger activity to slow down the week before Christmas but the pace of new deals, potential deals and even hostile offers continued unabated. In this midst of all this activity, we launched a new community on InsideArbitrage for our Premium, Plus and Yield Guru subscribers that you can access here.
With nine new topics and 37 responses in a single week, the community is already off to a great start and I think it will build over time as more of you participate and share ideas with your fellow investors. A discussion about merger arb downside review where Bob shares his downside prices for several deals and his process in reaching those prices was particularly insightful.
Mirati Therapeutics (MRTX) $58.94
Instead of discussing a specific deal, I am going to briefly discuss a deal with interesting optionality. We discussed the acquisition of Mirati Therapeutics (MRTX) by Bristol-Myers Squibb Company (BMY) for $5.8 billion in our October 2023 Mid-Month Update because the deal was trading at $55.94, below the $58 per share all cash acquisition price. The deal also includes one non-tradeable Contingent Value Right (CVR) potentially worth $12.00 per share in cash.