In point 1, as long as this spread exists, the Arbs will be moving in
and probably out which is why you were able to observe opposite
transactions of equal value happening at the same time. That was a
good observation since it shows the volume is being affected by this
trading pattern which will cease once the deal is done. And I go back
to the fund or venture firm that was unloading which was mentioned in
Barron's. I found interesting that MIFGY, according to Ian, was
underpriced as an IT mid-cap in the UK market. I think that is due
to the Arbs shorting, the Y2K discounting, and the merger with a US
firm that is carrying a lower multiple. When the deal is done, the
shorting ceases, it is again predominently a UK market issue, and the
multiple could drift back up to be consistent with what goes on over
there. Anyway, if true, there is maybe a week more to take a position
or add to a position at these prices. |
