AON - Deal spreads narrower after one of worst days ever in risk arb land

Spreads of major deals such as AMD's (NASDAQ:AMD) purchase of Xilinx (NASDAQ:XLNX) and Analog Devices (NASDAQ:ADI) acquisition of Maxim Integrated (NASDAQ:MXIM) narrowed after hitting some of widest ever yesterday since the deals were announced. “I’ve never seen anything like it," Roy Behren, managing member and portfolio manager at Westchester Capital, said in an interview with Seeking Alpha last night. "Maybe in March of 2020 with the COVID, other than you can tell people are just selling out of positions." Behren is referring to last March when deal spreads severely widened during Covid when investors thought the pandemic could derail LVMH's purchase of Tiffany and AbbVie's acquisition of Allergan. The Xilinx/AMD deal spread widened to about $65/share yesterday, or about 45%, though today it has narrowed to about $44, or 29%. Spreads of deals that need Chinese approval yesterday widened as investors appeared to be de-risking on general concerns about China as

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Deal spreads narrower after one of worst days ever in risk arb land