...finished the day (Sept 15) at $17.06, only up one cent? I mean, they close at 17.05 on Friday, then announce they are being bought out by BAC for $29 on Sunday night. Now I know MER is not going to zoom straight to $29 on Monday (because of the risk that the deal could blow up, etc.), but how does MER gap up to $21, then run up to $22.68, only to close flat? Did I miss some news? Or are these two stocks already trading in tandem? Can someone hold my hand on this one? Am I having a massive brain fart?
Well i guess there was so much selling that MER could not go to $29 ??I myself thought MER will open atleast $29 or $32 what a dispointment. The finance market is going bizare I called the broker and he said the deal has to be approved yet Dont know what,s going on
You obviously have no clue on markets. When BAC buyout was announced it was all stock deal and the risk premium that the deal will fall apart is high. BAC fell hard today and when it is all stock you have to factor in these things.
Well, I figured it would settle in the low 20's until the deal is closed. Surely some pair traders might know this answer.