Merger Arbitrage Spread List March 17, 2019
This is the Merger Arbitrage Spread List March 17, 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 FREEon 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
- Esterline Technologies Corporation (ESL) was the only completed deal from last weeks T20 list
- There were NO failed deals from last weeks list.
- Versum Materials (VSM) drops out of the list due to the spread now trading at a premium to the offer price.
The Present
- Ellie Mae (ELLI) and Ultimate Software (ULTI) are the T20 replacements already in existence this week
- Mellanox (MLNX) is the new cash deal 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 8.70%. New enternat Mellanox (MLNX) is the second largest offering 5.96%.
- The average spread for the positive portion of the T20 list is a 1.46% return. This return is higher than last week due primarily to the addition of MLNX. The T20 list is now back up to 18 constituents. To maintain consistency we have instigated (in line with the rules) two 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.
- We have warned for some time that speculating on the outcome of the broader economic picture or wider geo-political scene is not within the sphere of merger arbitrage. Despite merger arbitrage spreads widening during the week before last they have again tightened during the previous week. Any broader market increase such as the increase experienced this past week will not move the overall spread portfolio much higher whereas any market shock could have a significantly negative effect.
- 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
- There are no dividend payments expected during the coming week
- The go-shop provision for Ellie Mae (ELLI) is due to expire on Monday 18th March.
- Any deal announcements relating to this weeks T20 list will be announced in real time, most often via out twitter feed @MergeArbLimited.
