SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : JDS Uniphase (JDSU)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: pat mudge who wrote (13889)11/5/2000 4:44:16 AM
From: DukeCrow  Read Replies (1) of 24042
 
Pat,

I've read some articles on arbs and the JDSU/SDLI deal, and it appears that arbs aren't that aggressive in playing the spread. They are mostly playing the spread when it widens to 20% or so and then unwind after they make a couple percentage points. Basically, they have no clue as to whether the deal will or won't close and aren't willing to take the risk involved in holding the arb position until the deal closes. Also, the high price of SDLI makes this a capital intensive arb play, and most arbs don't feel comfortable putting up the capital to help narrow the gap further.

I don't think the spread will close appreciably until the companies give some kind of "all clear" signal.

Just MO.

Ali
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News