Merger Arbitrage Spread List March 3, 2019
This is the Merger Arbitrage Spread List March 3, 2019. A FREE list of the largest cash merger arbitrage opportunities trading on major US exchanges. The FREE spreadsheet below contains the latest essential deal information and criteria as per official company announcements. This merger arbitrage spread list provides the user with an investable database of deal spread opportunities. This information can provide a solid foundation for making merger arbitrage investing part of your investment portfolio. We encourage traders and investors to perform their own due diligence before making investments. However, merger arbitrage (also known as risk arbitrage) is relatively simple to understand and execute.
Not quite sure you’re ready for merger arbitrage yet?
Why not read our “How to Profit from Merger Arbitrage” guide first.
In addition to our free merger arbitrage spread list you can also check out more great content for FREE on this site using the menu bar above. Scroll through the listings on the “performance” and “analysis” pages to view our regular weekly output. To the right you can see what everyone else is reading from the “Popular Posts section or click on the “Archive” links. You can download our free to use Excel merger arbitrage spread calculation tool for calculating any stock-for-stock deal spreads you may be interested in along with detailed instructions for use.
A review of the week’s biggest movers highlighting the winners, losers and completions to last weeks top 20 list is also already available.
The Past
- There were 2 closed deals from last weeks T20 list, TransMontaigne Partners (TLP) and Investment Technology Group (ITG)
- There were NO failed deals from last weeks list.
- Along with TransMontaigne Partners (TLP), Investment Technology Group (ITG) drops out of the list due to the spread now trading at a premium to the offer price.
The Present
- There are no existing T20 existing replacements this week
- Spark Therapeutics (ONCE), Multi-Color Corporation (LABL) & Versum Materials (VSM) are the new cash deals announced during the week that made our list
- The largest (simple) spread this week continues to be Pacific Biosciences of California (PACB), offering a return of 8.84%. Redhat (RHT), which declined by $0.24 during the week sees its spread up to 4.06%. Tribune Media Company (TRCO) which recovered during the week sees it’s spread move 1.25% if TWO dividend payments are included. We have only included two in our calculation as historically the third payment for the year extends marginally beyond the three month payment cycle and thus beyond the official completion date.
- The average spread for the positive portion of the T20 list is a 1.08% return. This return is higher than last week. The T20 list now has only 16 constituents. To maintain consistency we have instigated (in line with the rules) four parts of cash in the vacant arbitrage spaces. Holding a cash position as part of the T20 portfolio also avoids the over reliance and weighting on the existing positions whose volatility may have had an outsized effect on the portfolio.
- Speculating on the outcome of trade negotiations or or nuclear talk with North Korea is not within the sphere of merger arbitrage. Even if the is a satisfactory resolution to these issues, merger arbitrage cash spreads now have even less room for manoeuvre. For this reason we continue to advise taking profits when possible and be ready to take advantage of any pullback should it occur.
- Always be careful using leverage in these situations and maintain at least some dry power for future opportunities.
The Future
- There are no scheduled earnings announcements for the forthcoming week
- Tribune Media Company (TRCO) goes ex-div on Friday
- Any deal announcements relating to this weeks T20 list will be announced in real time, most often via out twitter feed @MergeArbLimited.
