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.
Red Robin Gourmet Burgers (RRGB)
Red Robin suffered the worst decline in its history (for the second week running) last week as the markets began to price in the effect the coronavirus will have