Comments on: Mergers and Acquisitions Arbitrage Activity

By: Jae Jun

Jae Jun — Tue, 19 May 2009 07:12:06 +0000

Thanks for the updates John. I appreciated the research you’ve done and I’m sure others do as well.

By: John

John — Tue, 19 May 2009 00:51:09 +0000

Sorry for two posts but I got curious after my last one and checked into the NCX deal a bit more. Found this on MSN Money which may answer my question about Canadian approvals:

The U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and the Commissioner of Competition appointed under the Competition Act (Canada) issued a “no-action” letter advising the parties in writing that she does not have grounds on which to initiate proceedings before the Competition Tribunal under the merger provisions of the Competition Act (Canada).

I may take a position in NCX this week.

By: John

John — Tue, 19 May 2009 00:07:04 +0000

Just a quick note on NCX… I don’t hold a position because of something I heard awhile back that could cause a problem with the merger and could be why the spread is as wide as it is. I never followed up so I would be interested to hear any feedback, but the article that I read mentioned some worry of the formation of a monopoly and that the Canadian gov’t could get involved and strike the deal down because of a nationalistic stance.

Paul mentions the other conditions that have been satisfied, but I am pretty sure that the deal required some kind of Canadian Government agency ok.

I am playing ENPT, but small because of some shady dealings that I have read about the Din family. Again, not sure what to believe, as much of this was posted on message boards by less than reputable sources, but I think there is some cause for caution. I am beginning to question the lack of a set date for the shareholder meeting. I hope this is resolved soon. I might be more willing to take a bigger position then.

Any other opinions would be much appreciated…

By: Jae Jun

Jae Jun — Fri, 15 May 2009 07:28:01 +0000

@ Paul,

Thanks for the idea and update Paul.

By: Paul

Paul — Fri, 15 May 2009 02:49:06 +0000

@Tristin – I like the ENPT and NCX deals.

With NCX – the spread may not be large but the risk seems low.
1) shareholder approval
2) EU antitrust approval
3) No financing conditions

I don’t hold a position in ENPT.
I do hold a position in NCX.

By: Jae Jun

Jae Jun — Wed, 13 May 2009 07:28:41 +0000

Hi Tristan,

I haven’t been looking at mergers lately. There just doesn’t seem to be any really good ones. I’m not interested in gaining 10% over 5-6 months. It just doesn’t make sense.

The only one that may be worth the effort would probably be ENPT but that one still has over 1 1/2 months remaining.

With the market moving up, although it’s unclear whether the upward movement can be sustained, arbitrage plays aren’t so profitable. In a flat or down economy, yes. But if the market crashes again, I’m hoping to pick up some great companies I have on my list.

By: Tristan Luckett

Tristan Luckett — Tue, 12 May 2009 17:53:28 +0000

Jae,

I just started looking at Arb deals again. Anything on your radar?

Thanks,
Tristan

By: Jae Jun

Jae Jun — Mon, 27 Apr 2009 23:52:39 +0000

I didn’t invest much into DISK knowing the risk. My other positions have balanced it out but I’m holding and will see whether another company believes their assets is valuable.

By: Buy and Hold Plus

Buy and Hold Plus — Mon, 27 Apr 2009 23:49:45 +0000

You know, it’s funny you guys were talking about DISK. I got burnt on DISK.

And then I’m hoping for the ENPT deal to close like it’s supposed to.

http://buyandholdplus.com/blogweb/index.php?/archives/50-New-Purchase-ENPT.html

By: Jae Jun

Jae Jun — Mon, 20 Apr 2009 03:16:37 +0000

I guess my impatience got the better of me again. Im holding a small portion of DISK at the moment.

As for stock deals, I don’t like them period and I haven’t shorted anything before, so I hope someone else here can answer your question.