Lexmark International Inc. (LXK) Arbitrage

Discussion in 'Stocks' started by Cippo, Sep 27, 2016.

  1. Cippo

    Cippo

    Expected to close in the second half of 2016 for a closing value of $3.6 billion. Upon completion of the merger, shareholders of Lexmark International will receive $40.50 per share in cash.

    Any news about this arbitrage? the spread: current prize(34$)/Merge closing value (40.5$) is drammatically increasing (17%).
    But I cannot find bad news about this arbitrage.

    thank you

    cippo
     
  2. Sig

    Sig

    There are a number of funds that do nothing but this, ARBNX is one that I've held in the past. I was bullish on the idea 5 years ago, but as you can see from the chart on this one it seems that merger arbs are pretty fairly priced by the market.
     
  3. newwurldmn

    newwurldmn

    Merger Arb is just another form of selling puts. 10 wins, 1 loss. However, if you are in tune with the law, you can source some edge.
     
  4. newwurldmn

    newwurldmn

    LXK on the tape. CFIUS approval! Deal is probably a lock now.
     
  5. Cippo

    Cippo

    great news, thank you, CFIUS.
    I was a little worried about the reliability of this strange consortium of investors led by Apex Technology Co., Ltd. and PAG Asia Capital.
     
  6. Jamie J.

    Jamie J.

    Today LXK is a good gainer. But be careful. It may last not long. I wouldn't completely rely on this stock.
     
  7. Cippo

    Cippo

    Do you mean after the conclution of the merging? I agree, printing business cannot last longer.