Lexmark International Inc. (LXK) Arbitrage

C

Cippo

Expected to close in the second half of 2016 for a closing value of $3.6 billion. Upon completion of the merger, shareholders of Lexmark International will receive $40.50 per share in cash.

Any news about this arbitrage? the spread: current prize(34$)/Merge closing value (40.5$) is drammatically increasing (17%).
But I cannot find bad news about this arbitrage.

thank you

cippo
 
Cippo said:
Expected to close in the second half of 2016 for a closing value of $3.6 billion. Upon completion of the merger, shareholders of Lexmark International will receive $40.50 per share in cash.

Any news about this arbitrage? the spread: current prize(34$)/Merge closing value (40.5$) is drammatically increasing (17%).
But I cannot find bad news about this arbitrage.

thank you

cippo
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There are a number of funds that do nothing but this, ARBNX is one that I've held in the past. I was bullish on the idea 5 years ago, but as you can see from the chart on this one it seems that merger arbs are pretty fairly priced by the market.
 
Sig said:
There are a number of funds that do nothing but this, ARBNX is one that I've held in the past. I was bullish on the idea 5 years ago, but as you can see from the chart on this one it seems that merger arbs are pretty fairly priced by the market.
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Merger Arb is just another form of selling puts. 10 wins, 1 loss. However, if you are in tune with the law, you can source some edge.
 
great news, thank you, CFIUS.
I was a little worried about the reliability of this strange consortium of investors led by Apex Technology Co., Ltd. and PAG Asia Capital.
 
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