Merger Arbitrage Spread List June 23, 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 23, 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.
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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, completions & failures along with additional merger arbitrage investment commentary.
Merger Arbitrage Spread List
The Past
- Quantenna Communications (QTNA) was the only current list member closing during the week.
- There were no deal failures from last week’s list.
- CIRCOR International (CIR) is the other stock dropping out of the list this week. This stock is now trading above the current offer price in anticipation of a higher offer from Crane (CR).
The Present
- The T20 list now operates with a full complement of 20 constituents and 0 cash positions
- Array BioPharma (ARRY) is a new deal to enter our list this week, whilst International Speedway (ISCA) is an existing deal that also enters the T20 list.
- The largest (simple) spread this week is Pacific Biosciences of California (PACB) offering 28.41%.
- The average spread of the T20 components is 4.92%. This return is similar to last week. This reflects the large spread following decline of PACB despite a broader portfolio rise.
- The average completion date is January 13, 2020 (versus January 2 previously). This gives an annualized return of 8.97%
The Future
- There are no earnings announcements from the list scheduled for this week.
- WABCO Holdings (WBC) has a special meeting scheduled for 27 June.
- Cypress (CY) is expected to go ex-div on June 26.
- We will announce deal news relating to this week’s T20 list in real time via our twitter feed @MergeArbLimited.
And Finally…
- Regulatory issues appear to dominate the headlines this week. An upcoming meeting between China and the USA has calmed the markets during the week and helped stocks advance in addition to the possibility of an interest rate cut before year end.
- Spreads broadly narrowed during the week but with specific issues taking the spotlight. This is especially true for PACB. With new deals being drip fed into the market, quality opportunities are available. However, we anticipate continued volatility especially in light of the above upcoming trade talks.
- Be careful using leverage in these situations, especially longer dated deals.
