Bloomberg: Merger arb screen companies, offering, purchase, current

andytrader

So I dont get it, when I look at this screen, I see companies that are going to be bought at a decent premium to there current market value.

Why not just purchase the all cash offering ones ?

It can't be that easy, thats why I am asking to find out what the deal is here.

Viceroy

not all of them will go through - so there is inherent risk

laurab

What about the ones trading @ a discount to the offer!?!

___________________________________________________
ChickenTikka Wrote:
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> Being Born Wealthy > Being Jewish or WASPY > Born
> Pretty > Top 5 MBA > CFA > Avg MBA > Born middle
> class > Born lower class > Born in crack house >
> Born middleclass in Asia and working in IT but
> looking to switch to buyside

Windjammer

ASSet_MANagement Wrote:
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> What about the ones trading @ a discount to the
> offer!?!


they all are.

smuggycfa

^
Not according to MARB <GO> with the terminal sitting 3 inches to my left.

___________________________________________________
ChickenTikka Wrote:
-------------------------------------------------------
> Being Born Wealthy > Being Jewish or WASPY > Born
> Pretty > Top 5 MBA > CFA > Avg MBA > Born middle
> class > Born lower class > Born in crack house >
> Born middleclass in Asia and working in IT but
> looking to switch to buyside

lunarfollies

Deal risk. There are funds that specialize in doing nothing but this stuff. They try to analyze the chances of a deal blowing up, getting prolonged, etc.

economicz

^WHat sort of returns are a lot of these merg arb funds making?

pimpineasy

transferpricingCFA Wrote:
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> ^WHat sort of returns are a lot of these merg arb funds making?

It's a short gamma trade so you'll have many small gains followed by a large loss. Returns depend on the spread volatility, but think small consistent returns.

DSquaredSlim

So essentially these merg arb funds look at something like these bloomberg screen, investigate and asses which ones are likely to go through and invest in the target?