Dear Gary - the terms are in the orginal PR as well as the recently filed 8K [the last I checked a few days ago, it hasn't shown up on the yahoo version of edgar though.] I gather you've been around long enough to check the original sources, but quickly, it is a swap of 6 shares of NT for every 10 shares of BAY and the proposed timeframe is Q3.
Btw, while I don't hedge, your strategy of longing the acquiree and shorting the acquirer is obviously a typical hedging strategy. However, I don't see the gap disappearing totally until the consummation. Also, by no means to be critical of this time-honored strategy, this is not necessarily a no-brainer. While the chances are slim in this case, there is always the possibility for it to fall thru. In this case, your hedge would be a double whammy, for example, while it is not a perfect example, ADPT's attempt to acquire Symbios [it is not a perfect example since the latter is not a co but only a unit of Hyundai.]
good luck
best, Bosco |
