Current Merger Arbitrage Spreads, M&A Deals
The area you can make money in is the difference between the current stock price and the buyer's purchase price (if cash deal). It must be paid in cash, because in this market if a buyer offers a stock for stock deal, then the buyer's stock price is likely to fluctuate. That can eliminate the premium if the buyer's stock price drops significantly.
Buy
Stocks Online for $0. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com
Here's a list of likely
Mergers / Acquisitions:
>Constellation Energy Group
(CEG
)-
in September this energy giant accepted an offer from Warren
Buffett's MidAmerican Energy
Holdings for $4.73 billion.
Constellation filed for a shareholder proxy to vote in favor of the
acquisition.
Premium offered: 13.2%
or $3.10
Cash offered per share: $26.50
CEG current price: $23.40
Expected closing: within 7 months
>Rohm & Haas Co.
(ROH)-
to be bought by Dow Chemical Company
(DOW).
Premium
offered: 9% or $6.45
Cash offered per share: $78.00
ROH current price: $71.55
Expected closing: Jan. 2009/ Very early
2009
>Foundry Networks Inc. (FDRY)-
to be acquired by Brocade Communications Systems
Inc. (BRCD) for $2.6
billion.
Premium offered: 10.59% or
$1.58
Cash offered per share: $16.50 cash
FDRY current price: $14.92
Expected closing: Fourth quarter 2008
>Puget Energy Inc. (PSD)-
this deal is pending Macquarie
Bank's ability to borrow $7.4 billion, which is not easy
in these rough economic times.
Premium offered: 15.25%
or $3.97
Cash offered per share: $30.00
PSD current price: $26.03
Expected Closing: End of Dec. 2008
I will
be following more mergers and acquisitions, so stay tuned for more
money making opportunities.
There are chances that these acquisition deals might not go
through, so these gains are not guaranteed, but
likely.
Special Free Week offer to either the Print or Online
editions of The Wall Street Journal!!!
Priceline.com Hotels - save up to 50%
Why Invest in Stocks?Find Out On Zecco.com Free Blogs, Forums & Trade.
