Anthony,
I think I know what's going on:
WorldCom shares (WCOM), which reached a
52-week high of $47.625 Monday, traded as high as
$48.125 Tuesday before closing at $47.9375, up 37.5
cents, or 0.8%, on Nasdaq volume of 12.5 million.
Average daily volume is 9.6 million.
MCI (MCIC) stock leapfrogged Monday's 52-week
high of $57.125 to hit $58 Tuesday. At the close, the
shares were up 75 cents, or 1.3%, at $57.6875 on
Nasdaq volume of 4.5 million, compared to a daily
average of 4.7 million.
Note that MCIC rose 1.3% vs. WCOM's 0.8%. I bet that, as the merger becomes more likely, arbs short WCOM and buy MCIC to capture the spread between the two.
Hey, may be it's not too late to join them. Does anyone remember the exact MCIC-to-WCOM conversion ratio? I mean, how many shares of WCOM will be exchanged for one share of MCIC?
PTB |
