Merger Arb With Wide Spreads (26th of Jan)

I am refreshing SSI review of all merger arbs with wide spreads. This is an update on my previously published pieces in July, September and November.

In this post you will find 18 merger arbitrage situations with my quick takes on all the cases and reasons for the spread. This review also highlights the most important updates and developments in the ongoing cases since our previous review.

I have already covered the more attractive merger arbs from this, including YI here, DMS here, GSMG here and here as well as CCHWF here and here. Meanwhile, SAVE, ATVI and TGNA are part of our Large Cap M&A basket from May. As for the rest, I find these to be in the ‘too hard pile’ – most of these rely on approvals from regulators or have a high risk of buyers walking away and the market is most likely pricing the risks correctly.

A printable PDF as well as full descriptions below.

Merger Arb Table 01 26 3 2

DMS was covered in Quick Pitches here.

 

Silicon Motion Technology (SIMO)

 

Spirit Airlines (SAVE)

  • Buyers: JetBlue Airways (JBLU)
  • Consideration: JBLU: $34.15/share
  • Spread: 56%
  • Exp. Closing: H1’24
  • Main risk: regulatory approval.

 

CCHWF was covered in Quick Pitches here and here.

 

 

 

 

 

 

 

GSMG was covered in Quick Pitches here and here.

 

 

 

 

YI is covered as a Portfolio Idea here.

 

 

 

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