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.
Strategies & Market Trends : Arbitrage Plays
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Michael Burry who started this subject5/5/2003 9:51:10 AM
From: Paul Senior  Read Replies (1) of 376
 
Sunday's NY Times Business interviews a fund whose managers specialize in merger plays. They have been buying into the takeover of CE by FDC. I have a very small amount of CE, but I've not been adding more. Each CE ($14.60 closing price Fri.) is being offered .4 shares of FDC ($40.22). I had been concerned about regulatory approval, but these managers say that FDC ought to be able to satisfy gov't concerns by selling a small portion of their business where there might be overlap.

I had another concern and that's that both stocks have risen in the current positive market, so I see a possible volatility issue. My preference always is to just buy the target company. With the rise in FDC though, this suggests that maybe the proper play is that one should not only buy CE but also should short FDC. Otherwise one could capture the spread but still lose money overall if FDC dropped back dragging CE with it.
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