Merger Arbitrage Spread List December 23, 2018
This is the Merger Arbitrage Spread List December 23, 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.
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The Past
- There were no closed deals from last weeks top 20 list
- There was one failed deal from last weeks list. RCII chose to terminate their deal on the 18th December
- The three stocks to drop out of last weeks list were Rent-A-Center Inc (RCII), Belmond (BEL) & Electro Scientific Industries (ESIO)
The Present
- The 3 T20 replacements this week are Navigators Group Inc (NAVG), Esterline Technologies Corporation (ESL) & Bojangles (BOJA)
- Of these three replacements, none are new cash deals
- The largest spread this week again is AVA. This follows the failure to obtain the necessary regulatory approval and a slight recovery in the stock price during the past week. As the parties to this deal have publicly stated they continue to consider their options, the deal remains active. As the stock declined during the week and is now more exposed to market fluctuations the spread has widened again to 20.84%. That aside, the largest (simple) spread is once again is RHT offering a return of 9.60%. The spread is almost 2% wider than last week reflecting the broader market sell off but the annualised return remains at a similar level due to the extended time frame of expected completion. New entrants Navigators Group Inc (NAVG), Esterline Technologies Corporation (ESL) & Bojangles (BOJA) are offering spreads of 1.17%, 1.02% and 0.50% respectively
- The average spread for the entire T20 list (excluding AVA) is a 3.47% return which is significantly higher than the recent historical average. This increase in the level of return is expected in light of last weeks sell off in the broader market. Investors are still advised however to exercise a great deal of caution when selecting deals. As mentioned in last weeks notes, the broader market sell off affects ALL stocks regardless of their M&A status. Always be careful using leverage in these situations especially when deals are not completing as expected and spreads widen. Have at least some dry power at the ready.
The Future
- There are no earnings announcements expected during the forthcoming week from the members of this weeks list
- There are no dividend payments expected during the coming week
- 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.
