I am playing both the MMI and the AAC buyout deals.
AAC appears to be an excellent risk reward play with a "kicker" that is hard to value; therefore, any professional would not be able to give it any real financial wherewithal. Thus the opportunity for a slightly better financial return for the holding period to close.
With MMI, I am relying on St Paul, who I have worked with in the past, and they are straight shooting professionals. So I expect the deal to close, although not until well along in the second quarter, at the earliest.
I was looking at the wide spread in the Mask/Plab deal, but I am uncomfortable with the volatility of that sector at this stage of the market. Also, it appears that there have been some evolution of the deal (changes along the way)...perhaps it could be of some interst after the conference call Friday morning. Wide spreads are usually wide for a reason and I am not sure I understand the reasons well enough to play this one.
I normally participate in a number of arbitrage positions and spinoffs at any one time, with generally good overall results. However, having been burned several times in high risk arbitrage positions, I tend to go for a lower risk -acceptable reward portfolio. Nevertheless, I sometimes participate in the higher risk arb deals.
Any input always appreciated. |
