Tropicana Entertainment (TPCA) – Tender Offer – 5.5% expected upside
Current Price – $42.6
Offer Price – $38 – $45
Upside – 5.5% (if priced at the upper limit)
Expiration Date – 2nd of August, 2017
This tender offer seems to be a step towards Carl Icahn taking the company private. Icahn’s IEP already owns 72.5% of the outstanding shares and will have 80%-95% after the tender. Due to this reason I believe that tender pricing at the upper limit is very likely (thus low risk 5.5% upside). After the tender Icahn will