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.
Bitauto Holdings (BITA)
Bitauto Holdings produced one of the best performances this week. The stock has an offer of $16 from Tencent Holdings (OTCPK:TCEHY). We note the historical underperformance of this stock.