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Strategies & Market Trends : Arbitrage Plays

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To: Paul Senior who wrote (15)6/17/1999 10:34:00 AM
From: Allen Furlan  Read Replies (2) of 376
 
Paul. both tyc/cnsp and neg/ctp seem to be reasonable risk but also low return. The cnsp seems to me to have the greatest probability of going through. The one I cant figure out is dd/phb. Next week the European Committee is supposed to meet and I believe this is the last regulatory hurdle. Then prospectus to SEC, shareholder meeting and I think completion in 3 months. Some market risk because it is a stock/cash deal. Stock conversion is based on 10 days prior to shareholder vote. Should be able to close the position with 1.5 in three months according to my calculations for 4% or 16% annualized. Still think that September 30 puts sold (13/16 two weeks ago) against cash margin of 10% of stock(3.8) was way to go.
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