Question about MER stock price

Discussion in 'Trading' started by gwac, Sep 14, 2008.

  1. gwac


    If BOA offers 26, with such a large short position that has to be covered, could the price go higher or will there be enough supply at 26???? Anybody with experience in this!
  2. mwerbe


    lol the price will be lower like 25.50 if the offer is 26 until the deal actually closes, the arb funds would have a field day shorting the stock if the price ever got to 26
  3. When the buyout price is announced, the price would generally come in around $24-25, the difference is due to opportunity cost of holding the underlying vs investing your cash at the risk free rate (Depends on how far into the future the planned acquisition is). Theres also risk in holding if the deal eventually falls through. There will be plenty of people willing to sell, but not for much less than the price i listed. Anything else will be arbed.
  4. Temasek must be thanking god
  5. Why would BAC buy MER at $26. Why not $20. Or wait a week and pick it up at $2. I think BAC shareholders will get murdered. Short BAC on open.
  6. The feds are pushing hard on BAC to make this deal. However, if the BS meter rings loud enough, BAC's stock will crater and they will be unable to close the deal.
  7. Singapore owns 14% of MER. the US govt will not let a sovereign fund investment fail.
  8. Why did BSC surge over $11 when JPM raised their bid to $10?
  9. They thought someone else might step in
  10. Well since they are offering $29 a share and i am plannig to cover it
    Should i cover it at 9.30 when the market open or wait till tomorrow GS reports :- ~
    #10     Sep 14, 2008