Merger Arbitrage Spread List December 9, 2018
This is the Merger Arbitrage Spread List December 9, 2018. 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. The most recent spread listings can be found here.
This risk arbitrage tracking list provides the user with an investable database of deal spread opportunities. Rules for inclusion in this list can be found on the spread tracker eligibility rules page along with additional help and user guidelines. Unlike some data providers, dividends, which can have a dramatic effect on the value of a spread have been included in the return calculation.
The Past
- There were two closed deals from last weeks top 20 list. These were Sonic Corp. (SONC) and Forest City Realty Trust Inc (FCE-A). Both of these deals were expected to close at the end of the year
- Along with SONC & FCE-A, IMPV & MZOR also drop out of the top 20 this week due to their stagnant movement and the widening of alternative spreads.
The Present
- The 4 T20 replacements this week are Tribune Media Company (TRCO), Tesaro, Inc. (TSRO), Investment Technology Group (ITG) & Navigators Group Inc (NAVG).
- Of these four replacements, 2 new cash deals were announced during the week namely TRCO & TSRO.
- The largest spread this week is AVA following the failure to obtain the necessary regulatory approval. As the parties to this deal have publicly stated they continue to consider their options, the deal remains active. That aside the largest deal is once again is RHT offering a return of 7.28%. The spread is marginally wider than last week but the annualised return remains low due to the extended time frame of expected completion. New entrant Tribune Media is offering a spread of 4.47% This deal is expected to close in the third quarter of next year.
- The average spread for the entire T20 list (excluding AVA) is a 2.19% return which is slightly below the recent historical average. This level of return is somewhat surprising in light of last weeks sell off in the broader market. With such thin margins available and an increasingly volatile market traders are advised to exercise a great deal of caution when selecting deals. The issues highlighted by AVA in this weeks performance analysis serve to reinforce this analysis.
The Future
- There are no earnings announcements expected during the forthcoming week from the members of this weeks list
- There arr no dividend payments expected during the coming week. A payment from ESND of $0.13, currently undergoing a stock tender offer, will not be made as per the SC TO-T/A filing on 12th December
- Any deal announcements relating to this weeks T20 list will be announced in real time, most often via out twitter feed @MergeArbLimited. A premium service offering additional information and advice is available to those who have previously donated using the paypal widget above.
