Virgin Mobile USA (VM) being bought by Sprint Nextel (S). It is a stock deal with restrictions. Based on the terms (see snippet at bottom of this post), here’s how it would work out:
First, if your shares cost you $5.50 in the first place, to at least break even, S’s 10-day avg closing price ending [...]
Not an arbitrage opp, but more like a long term roll of the dice… you get 7-year stock warrants on this one! Wait… what?
Frontier Financial Corporation (NASDAQ: FTBK) is to be acquired by Acquisition Holdings, Inc. (NYSE Amex: DSP) (”SPAH”). The deal is 0.053 shares of DSP stock (currently trading at $9.73 on July 31, [...]
I’ve updated some existing positions since I last added info to this blog, so here’s a recap:
JAVA:
Deal to be bought by Oracle instead of IBM. (Approved by shareholders on July 16, 2009). New offer price: $9.50/sh cash. Not sure on deal close date, so I will assume 12/31/2009. My entry was $8.20. I decide to [...]
Looks like my TAGS position is still on track to pay out. Mgmt scheduled a special meeting Aug 20, 2009 to vote on the previous merger agreement with a group of investers.
I should make 18% ROI if the deal closes.
Arbitrage opp. Proposed deal from AT&T (T) for Centennial Communications (CYCL) is $8.50/sh due to close by the end of 4Q 2009. There are some warning signs / risk, thus the gap.
More thoughts on this deal from DividendGrowthInvestor at Seeking Alpha.
Gap: ($8.50 - $7.46) / $7.46 = 13.9% ROI (33.4% annualized if it takes till [...]
