Merger Arbitrage Commentary

The Merger Arbitrage Commentary category is a series of articles by MergerArbitrageLimited.com. These articles provide the reader with specific information and analysis on a variety of subjects. These may be larger or more complex deals that require additional commentary or deals that we use as an example to demonstrate an important issue. We may also include reviews of third party articles or books.

Commentary articles will generally be shorter in nature. In contrast, our merger arbitrage strategy section contains longer form content, educating the trader in the merger arbitrage process. However, these articles continue to make extensive use of the resources on this site. We heavily reference our Spread Tracker Top 20 list page and our Spread Performance category.

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Read more about the article Calculating Stock Based Merger Arbitrage Spreads – Barrick (ABX) & Randgold (GOLD) – An Example
Stock Based Merger Arbitrage Spreads

Calculating Stock Based Merger Arbitrage Spreads – Barrick (ABX) & Randgold (GOLD) – An Example

Is it possible that when calculating stock based merger arbitrage spreads the deal spread in the offer can trade at a premium? A value ABOVE the offer price as calculated from the acquirer stock price? This article analyses in depth and explains how and why this spread premium is possible. We also give an example how the arbitrageur can profit from similar situations.

Continue ReadingCalculating Stock Based Merger Arbitrage Spreads – Barrick (ABX) & Randgold (GOLD) – An Example
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