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InsideArbitrage Event Driven Monitor – October 25, 2024

  • October 25, 2024

Merger Arbitrage

  1. CPRI: U.S. District Judge Jennifer Rochon blocked the acquisition of Capri (CPRI) by Tapestry (TPR), concluding the deal would harm competition in the market for “accessible luxury” handbags. “The decision granting the FTC’s request for a preliminary injunction is disappointing and, we believe, incorrect on the law and the facts,” Tapestry said, adding that it intends to appeal the decision.
  2. FYBR: On October 24, 2024, Glendon Capital Management LP, a major shareholder of Frontier Communications Inc. (FYBR) with nearly 10% ownership, has sent a letter to Frontier’s Board of Directors expressing its opposition to the proposed acquisition by Verizon Communications Inc. (VZ) at $38.50 per share. Glendon argues that Frontier’s enterprise value is at least $26 billion, 30% higher than the $20 billion value implied by the Verizon transaction, based on recent comparable deals and Frontier’s projected future cash flows. The firm also criticized the Board’s rushed scheduling of the record date and special shareholder meeting, calling for an extension to allow investors sufficient time to evaluate Frontier’s standalone value.

You can check out new deals, all deal updates, and spreads on active deals in our Merger Arbitrage Tool for premium members here.

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