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.
Current Price –$3.67
Expected Price - $6.5
Upside – 77%
Expiration Date - Dec 2017
This is my second look at the pending WBA/RAD merger – I was spectacularly wrong the first time and the only consolation is that market was wrong as well – the spread narrowed to 3% before the deal started collapsing. The merger agreement has been adjusted – instead of $9/share WBA is planning to acquire RAD at $6.5-$7/share (77% upside) and higher number of stores will be divested
Current Price – $15
Expected Buyout – $23
Upside – 50%
Expiration Date – TBD (expected in H1 2017)
Penntex Midstream is likely to be fully acquired by ETP, which already owns 65% of the company. This is similar to OCI/OCIP transaction that was posted on the site earlier as well as a number of other consolidations in the MLP space (TRP/CPPL, TLLP/QEPM) whereby general partner which owns majority of MLP buys out the remaining limited partner units.
Current Price – $5.13
Expected Buyout – $6.5
Upside – 25%
Expiration Date – TBD
This is a fairly straightforward situation. Tangoe received non-binding proposals to be acquired by Marlin Equity Partners (10% shareholder) at $7.5/share and by Clearlake Capital Group and Vector Capital Management (jointly 25% shareholders) at $7/share. Following further discussions Marlin later reduced their proposal to $6.5/share. Clearlake/Vector have not issued any further updates with regards to their offer so it is not clear whether their proposal still stands.
Current Price –$7.5
Offer Price - $7.9
Upside – 5.3%
Expiration Date - TBD (expected Q1 2017)
This is a merger arbitrage situation, where current acquisition proposal understates the value of the company and the risk of deal getting cancelled is low. The spread is at 5.3%.
Current Price – $11.16
Expected Buyout – $11.85
Upside – 7%
Expiration Date – 31st of March, 2017
This is a relatively straightforward situation and I will keep the write-up light as I am travelling today (happy to expand more in the comments section later).
Zweig Fund (ZF) and Virtus Total Return Fund (DCA) will be merged by the end of March. Both closed end funds are administered by the same asset manager and shareholders have already agreed to the merger.
Current Price –$79.34
Offer Price - $93
Upside – 17.5%
Expiration Date - TBD (likely in H1 2017)
Let me start by saying that this is a large cap transaction and the deal is widely followed and analysed – I do not have any superior insights with regards to the likelihood of the transaction going through so my opinion is as good as anybody’s else. However, I believe this opportunity is quite interesting, spread is large (17%) and therefore worth flagging.
Upside – 2.7%
Expiration Date - Q1 2017
This idea was suggested to me by one reader of the site – it’s an arbitrage trade in Canadian preferred shares. Upside is tiny, but the deal itself is interesting – so I decided to write it up. I have a small position mainly to track how this transaction plays out.
Current Price –$8.25
Offer Price – $9.00
Upside – 9.0%
Expiration Date - Jan 2017
This is another large cap merger arbitrage deal where the spread of 9% is mostly due to pending regulatory approval. Recent developments suggest the deal is likely to close. At the same time there is opportunity to hedge the risk of the deal failing.
Current Price –$100.52
Offer price - $109
Upside – 8.5%
Expiration date – 4th November 2016
Current Price – $3.4
Offer Price – $3.7
Upside – 9%
Expiration date – 28 October 2016
This special situation results from recent forced selling due to delisting from Australia and New Zealand exchanges.
Long investors in Coats Group (listed in London Stock Exchange) stand to make 10%+ if prices revert to back to previous 30p/share vs current GBP 26p/share.
Investment thesis – bet on higher takeover price from AMC as CKEC shareholder will reject the current offer due to price being too low
Carmike Cinemas (4th largest movie theater company in US) is in the process of being bought by AMC Entertainment (2nd largest). This M&A would create the largest movie theater chain in US with obvious benefits and large synergies for AMC.
Carmike Cinemas trades at $30.47 vs. current takeover price of $30.00.
Current Price –$23
Offer Price - $25+ (expected)
Upside – 10%+ (expected)
Expiration Date - 13th of December, 2016
Current Price –$2.76
Offer price - $3.45
Upside – 25%
Expiration date – TBD (likely sometime in Nov, 2016)