The Power of Bidding Wars in Merger Arbitrage – Merger Arbitrage Mondays

In merger arbitrage, one of the most interesting things that can happen to any deal is the emergence of a bidding war for the target company. This helps offset some of the risk from failed mergers, which often leads to a big drop in the target’s stock price.

This week, we saw two bidding wars that came to different conclusions, but in both cases, it meant a win for the investors who had a position in the target.

Two Harbors Investment Corp. (TWO): $11.22

Market Cap: $1.18B

Deal Value: $8.45B

In the first case, we have Two Harbors:

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