Merger Arb Spreads

Discussion in 'Strategy Building' started by TheStudent, Sep 26, 2003.

  1. "The proposed merger was subject to one of the longest-ever running reviews at the FCC, becoming entangled with the struggle between Democrats and Republicans over the Hispanic vote. Univision Chairman and Chief Executive Jerrold Perenchio has been a major supporter of Republican candidates, while Spanish Broadcasting's Chief Executive Raul Alarcon tips slightly toward the Democrats."

    Seems this arb was quite a bit like an option that either was worth $2 or some large negative amount. This was no lock.
     
    #11     Oct 2, 2003
  2. Sioux

    Sioux


    Ivan Boesky wrote a book in the 1980's titled "Merger Mania",
    2 years before he went to the pokey.
     
    #12     Oct 2, 2003
  3. Sioux and Joe Trader - thanks for your pointers.

    I personally think there is a way to rethink the merger arb game - hence the interest in obtaining data. I'm yanking it out from a Bloomie one deal at a time, so not very efficient at all.

    btw, just to give back - everyone interested in merger arb should read the Mitchell Pulvino paper (2001). The work there is quite definitive on traditional merger arbs.
     
    #13     Oct 3, 2003