Merger Arbitrage Spread List May 19, 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 May 19, 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.
Not quite sure you’re ready for merger arbitrage yet?
Why not read our “How to Profit from Merger Arbitrage” guide first.
Merger Arbitrage Spread List Guidelines
Each Sunday a copy of this page, including the embedded excel file, is transferred to the “Spreads Archive” page for easy reference. You can find last weeks top 20 in this section. A companion post, a review of the week’s biggest movers to the previous week’s list of largest merger arbitrage spreads is also available. This companion report highlights the gainers & losers as well as deal completions or failures along with additional merger arbitrage investment commentary.
Additional Resources
In addition to our FREE merger arbitrage spread list you can also check out more great FREE content on this site using the menu bar above. Scroll through the listings on the “performance” and “strategy” pages to view our regular weekly output. To the right you can see what everyone else is reading in “Popular Posts” or click on the “Archive” links. Our Website Enhancements and Functionality page provides a comprehensive guide to maximising the information available on this site.
You can download our FREE to use Excel merger arbitrage spread calculation tool. This can calculate any stock-for-stock deal spreads you may be interested in along with detailed instructions for use.
The Past
- InfraREIT, Inc. (HIFR), was the only closed deal during the week from the list
- Nightstar Therapeutics (NITE) & Navigators Group Inc (NAVG) are the other stocks other than InfraREIT, Inc. dropping out of the list this week
- There were NO failed deals from last week’s list.
The Present
- The T20 list now operates with a full complement of 20 constituents and 0 cash positions
- There are no new deal spreads that makes our list this week
- Control4 (CTRL), Multi-Color Corporation (LABL) & Electronics for Imaging (EFII) are the existing T20 entrants this week.
- The largest (simple) spread this week is Mellanox (MLNX) offering 10.73%.
- The average spread of the T20 components is 3.89%. This return is SIGNIFICANTLY higher than last week. This reflects the LARGE broad decline in deal spreads during the week but also specific declines such as MLNX and ONCE.
- The average completion date is November 10 (versus October 5). This gives an annualized return of 8.28%
The Future
- There are no earnings announcements from the members of the list scheduled for this week
- Advanced Disposal Services (ADSW) is the only special meeting scheduled for this week from our T20 list
- There are no stocks going ex-div this week.
- Deal announcements relating to this week’s T20 list will be announced in real time via our twitter feed @MergeArbLimited
And Finally…
- The market continues to digest and interpret the actions and implications of a potential trade war. Deals and spreads with a Chinese connection have been hit as fears grow of retaliatory practices.
- We have continually warned for some time that these issues could hit merger arbitrage spreads. This has become apparent during the past week. Spreads have widened whilst the broader market remained relatively unchanged but with a heightened level of fear. Newer spreads are most at risk with more deal uncertainty but may provide attractive opportunities.
- Be careful using leverage in these situations, especially longer dated deals. The dry power we advised you maintain may now come in to play and serve you well.
