I sold CYCL at $8.37 today. Considering the deal with AT&T is $8.50, I think I am close enough to bail (plus the deal is not 100% yet). So, I was in at $7.46. This was not a simulated position. I bought 400 shares. So, my stats on this deal were:
(400 x $7.46) + $4.50 [...]
AT&T and CYCL both said recently that the merger deal will happen early Q4, 2009:
“… AT&T and Centennial Communications Corp. (NASDAQ: CYCL) announced today that, assuming timely satisfaction or waiver of all remaining closing conditions including receipt of the required regulatory approvals, they now anticipate the pending acquisition of Centennial by AT&T to be completed [...]
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 [...]
