This reeks of a fake bid sponsored by the Fed to support the market. I doubt MER will last 3 months, the time needed to finalize the merger. Thoughts?
Remember when BAC took full ownership of CFC? Kinda the same scenario and results. People faded that gap, too. These govt. induced marriages just aren't as sexy as free market ones. Don't be fooled into thinking MER is a turnaround story. Look at CFC.
MER closed completely flat today. People were saying MER is going to $30, uh huh... "YOU LUCKY MER HOLDERS ARE GOING TO BE RRRRICH!!!!!"
agreed kin, as soon as MER opened at like 23 and started heading down i was tempted to short. either you are right and its a bogus bid, or people are just betting on it being rejected by boa or mer shareholders. but i dont trade stocks only futures and fx sadly
did you take that trade? it was an excellent call. the spread on the deal is like around 35% discount now.
It's a stock swap deal, don't forget that. The $29/share was an inferred price based on BAC's closing friday print. Obviously they expected it to get whacked down. At this rate, BAC may get MER at single digits.