Current Price –$3.49
Offer Price – $4.6
Upside – 34%
Expiration Date – Q3 2017 (expected)
Destination Maternity is due to merge with french Orchestra Premaman (KAZI) and the spread is 34%. The main official rationale for the merger is revenue synergies as both companies are selling complimentary products in different geographies.
Current Price –$35.5
Offer Price – $38.5
Upside – 8%
Expiration Date – Q1 2018 (or earlier)
8% in a year might not sound overly attractive at first, but I consider this arbitrage opportunity to be close to risk free. The partnership will gradually distribute its only asset (which is ATH shares – large cap health insurer) to unitholders and then liquidate. AAA trades in Amsterdam and it is possible to purchase units using Interactive Brokers.