OCI Partners (OCIP) – Merger Arbitrage – 5.3% upside
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%.