Destination Maternity (DEST) – Merger Arbitrage – 34% upside
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.