This article explains the reasons behind the movement in a selection of the largest U.S. cash merger arbitrage spreads from the past week as calculated by Merger Arbitrage Limited. We analyze the attractiveness and profitability of each spread going forward and indicate the trading position or action we have taken or intend to take based upon the analysis given.
Pacific Biosciences of California (PACB)
Pacific Biosciences of California had one of its more volatile weeks last week. The stock started brightly but on Tuesday took a nosedive. PACB then recovered throughout the rest