With a flurry of transactions announced over the last few weeks, I’m initiating a position in the Bass Pro Cabela’s merger. But first, an overview of the recent news and a quick portfolio update.
Just as America is about to elect its next president, companies have rushed to announce their merger plans, in a move that departs with other election years. I will cover these first before giving some updates on the portfolio and give a few reasons why I initiated a position in the Bass Pro Cabela’s merger.
But first, the latest M&A activity. Continue reading “Bass Pro Cabela’s Merger, News And Portfolio”
The markets never sleep, and while I was away on a (well deserved!) trip, a few things worth mentioning happened in the M&A space
Summer.. always a good time to be checked out of the financial world. But that I’m taking a break doesn’t mean nothing is happening, and before publishing about a new deal hopefully early next week, I want to quickly review what’s happened recently in our little merger arbitrage business now that I’m back from vacation. Continue reading “Back From Vacation: What Happened Since I Left?”
On March 16, 2016, Coherent (NASDAQ: COHR) annouced that it was acquiring Rofin-Sinar (NASDAQ: RSTI) for US$32.50/share. Now in the last finish line, the deal seems like a relatively easy win.
The transaction had a few milestones to hit on the road map, including shareholder vote and some regulatory approvals. Now that the vote has taken place and Coherent received clearance from the US regulator to acquire Rofin-Sinar, the only thing left to do is getting approval from the European Commission. Continue reading “Coherent/Rofin: One Last Small Regulatory Approval”
On Feb. 3, 2016, China Ming Yang Wind Power (NYSE: MY) announced it had entered into a definitive merger agreement for a going private transaction led by a consortium of investors, including the company’s Chairman and CEO, Mr. Zhang. With little in the way of the transaction closing around mid-June and ~4% of price upside remaining, investors should consider picking up a few shares for what should be a smooth ride.
Going private transactions are often the best arbitrage opportunities, since the antitrust reviews are usually not a concern (the impact of those transactions on a company’s pricing power is limited). What’s more, when the deal is put together by a bunch of insiders with significant control, the chances of it going through are high, especially if no alternative transaction has emerged. China Ming Yang Wind Power displays all the attributes of an attractive merger arbitrage opportunity that is being largely ignored because of the limited liquidity in the stock. However, for the average retail investor, there are more than enough shares changing hands daily to realize a ~55% annualized return, and below are reasons why investors should go ahead. Continue reading “China Ming Yang Wind Power: Potential 55% Annualized Return”
Baxalta Shire merger: On Jan. 11, 2016, Shire (NASDAQ: SHPG) made the headlines of the pharma news when it announced that it had agreed to buy Baxalta (NYSE: BXLT) for US$32bn in a cash and stock transaction. The spread sits currently at ~7% and below are the key reasons why the outcome should be favorable (i.e. the deal closing)
Continue reading “Baxalta Shire Merger: Attractive Spread”