Here is the situation: company A has stock based tender offer of company B. Each share of company B is 0.5 of those of company A. Currently, the company A is $50, and $20 for company B. The deadline of the offer is in two weeks. I want to do the following trading: buy 1000 shares of company A, sell 500 shares of company B at the same time, and accept the tender offer. Therefore, I will potentially make $5000 for the trading if the tender offer is completed. The risk is 1). If the offer is extended, my capital will be tied up there, 2). If company A cancels the tender offer, company B will drop significantly I will lose money accordingly. In this situation, what kind of legal action can I do to make company A accept my shares of company B? Any suggestion or comment? Thanks, Jim
Can anyone give me some comments or suggestions on the trade? Or simply not to trade because it is too risky.