This article explains the reasons behind the movement in a selection of the largest U.S. cash financed merger arbitrage spreads from the past week as calculated by Merger Arbitrage Limited. We analyze the attractiveness and profitability of each spread and indicate the trading position or action we have taken or intend to take based upon the analysis given. To conclude, we give brief summary and outlook for the overall merger arbitrage market.
Deal Spotlight
Bluegreen Vacations Corporation (BXG) climbed 1.74% to close the week at $15.17. This is a $0.83 discount to