Merger Arbitrage Spread List June 2, 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 June 2, 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.
Merger Arbitrage Spread List Guidelines
Following the information in the spreadsheet below is a brief analysis of the data. This includes the sections “Past”, “Present” and “Future”. The “Past” section details stocks that dropped out from the previous week’s list. See our list archive for previous articles. The “Present” lists any new stock additions to the list and gives a brief analysis of the return metrics of the portfolio. There is also limited commentary of the portfolio and wider economic picture. The “Future” lists known upcoming corporate events for the coming week relating to the stocks listed.
Each Sunday, mergerarbitragelimited.com transfers a copy of this page, including the embedded excel file, 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 merger arbitrage spread list you can also access more FREE content 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.
Merger Arbitrage Spread List
The Past
- Travelport (TVPT) was the only closed deals from the list during the week
- There were no deal failures from last week’s list.
- There were no additional stocks to dropping out of the list this week
The Present
- The T20 list now operates with a full complement of 20 constituents and 0 cash positions
- Electronics for Imaging (EFII) is the deal spread replacement to enter our list this week
- There are no other T20 entrants this week.
- The largest (simple) spread this week is Pacific Biosciences of California (PACB) offering 19.40%.
- The average spread of the T20 components is once again 4.11%. This return is exactly the same as last week remains at an elevated level. This reflects the large targeted decline in deal spreads such as PACB and the closure of TVPT.
- The average completion date is November 28 (versus November 3). This gives an annualized return of 8.56%
The Future
- There are no earnings announcements from the members of the list scheduled for this week
- No special meetings are scheduled for this week from our T20 list
- There are no stocks going ex-div this week.
- Spark Therapeutics (ONCE) expects the HSR waiting period to expire on or about June 7, 2019 unless otherwise stated.
- Deal announcements relating to this week’s T20 list will be announced in real time via our twitter feed @MergeArbLimited
And Finally…
- New trade complications and ongoing disputes continue to cause market fluctuations. Deal spreads with Chinese connections continue to be the most volatile as the market reacts to speculation in the press. For instance, see TVPT movement before the deal closure announcement.
- Spreads remain wide as the broader market fluctuates. Readers who took our previous advice should be able to find attractive opportunities in this market. However, some of these deals are experiencing a new wave of issues relating to the ongoing economic turmoil. Still, one expects these deals to complete but in an extended timeframe. We advise investors to use caution and always fully research investments.
- Be careful using leverage in these situations, especially longer dated deals.
