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.
Pattern Energy Group (PEGI)
Pattern Energy Group makes a rare appearance into the largest movers this week. The stock which started the week $0.08 higher than the current offer price began to drift upwards