Deals, Deals and More Deals...

What is Merger Arbitrage?

When a company agrees to be acquired by another company, its stock price tends to rise over time to just below the stated acquisition price. In order to realize a gain, our portfolio must lock in the “spread”, which is the difference between the price at which the acquisition target trades and the price the acquiring company will pay for the acquisition target. Through extensive research, we form a view as to whether the acquisition is likely to be completed and then invest accordingly. The objective is to purchase the stock of the target company at a price below the acquisition price and thereafter receive the acquisition price upon closure of the deal.

Deals… Deals… and More Deals unveils the mystery of arbitrage investing. Simply stated, risk arbitrage is investing in a merger or acquisition target and holding the stock until the deal closes.

The practice of merger arbitrage has arisen from the takeover and consolidations that have transformed businesses for the past 100 years. Deals… Deals… and More Deals examines the history of arbitrage, from the great consolidators of the late 19^th Century to the U.S. megadeals of the 1990’s.

Merger Masters presents revealing profiles of monumentally successful merger investors based on exclusive interviews with some of the greatest minds to practice the art of arbitrage. They share their insights on the discipline that underlies their fortunes, whether they practice the “plain vanilla” strategy of announced deals, the aggressive strategy of activist investment, or any strategy in between on the risk spectrum.