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)
PACB was again amongst the largest movers this week. Despite a slow start to the week, Wednesday saw the start of a rise which took the stock higher until