Merger Arbitrage Spread List June 16, 2019
This list of the largest merger arbitrage spreads is a FREE list of cash spreads trading on major US exchanges. The Merger Arbitrage Spread List June 16, 2019 is the latest list of opportunities available. 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.
Merger Arbitrage Spread List Guidelines
Following the information in the spreadsheet below is a brief analysis of the data. This includes the sections “Past”, “Present” and “Future”. The “Past” section details stocks that dropped out from the previous week’s list. See our list archive for previous articles. The “Present” lists any new stock additions to the list and gives a brief analysis of the return metrics of the portfolio. There is also limited commentary of the portfolio and wider economic picture. The “Future” lists known upcoming corporate events for the coming week relating to the stocks listed.
For more advanced users the individual generic URL for these archived pages is “https://mergerarbitragelimited.com/largest-merger-arbitrage-spreads-YYYYMMDD“. Where “YYYYMMDD” is the international standard ISO 8601 for dates. For example, a trader could use this generic URL BUT replace “YYYYMMDD” with “20190616”. This would refer to Sunday June 16, 2019 (a Sunday archived list). In this example, the trader locates directly the list of largest merger arbitrage spreads 20190616 post.
Merger Arbitrage Spread List June 16, 2019
The Past
- Luxoft Holding (LXFT) was the only current list member closing during the week. Whereas former member KeyW Holding (KEYW) was the other deal we have previously tracked to close during the week
- There were no deal failures from last week’s list.
- Luxoft Holding (LXFT), Electronics for Imaging (EFII) and Multi-Color Corporation (LABL) are the three stocks dropping out of the list this week. The latter two stocks trading close to the current offer price in anticipation of the deals closing.
The Present
- The T20 list now operates with a full complement of 20 constituents and 0 cash positions
- Medidata Solutions (MDSO) and Shutterfly (SFLY) are new deals to enter our list this week
- CIRCOR International (CIR) is an existing deal that also enters the T20 list.
- The largest (simple) spread this week is Pacific Biosciences of California (PACB) offering 20.30%.
- The average spread of the T20 components is 5.12%. This return is almost 1% higher than last week. This reflects the large spreads from the price declines in PACB and ONCE.
- The average completion date is January 2, 2020 (versus December 16). This gives an annualized return of 9.54%
The Future
- Red Hat (RHT) is scheduled to announce Q1 earnings results on Thursday, June 20th, after market close. Barnes & Noble (BKS) reports 4Q19 Wednesday.
- Versum Materials (VSM) has a special meeting scheduled for 17 June and Mellanox (MLNX) has a special meeting scheduled for 20 June
- There are no ex-div announcements from the members of the list scheduled for this week.
- Deal announcements relating to this week’s T20 list will be announced in real time via our twitter feed @MergeArbLimited
And Finally…
- Deal spreads with Chinese connections continue to be volatile. This is in addition to Broadcom’s announcement that the ongoing trade dispute is hurting demand in the semiconductor industry.
- Spreads broadly widened during the week but with specific issues taking the spotlight. This is despite a wider recovery in the broader market and a declining interest rate giving merger arbitrageurs a welcome boost. With new deals announced, quality opportunities are available in the market however. Although we anticipate continued volatility.
- Be careful using leverage in these situations, especially longer dated deals.
