I initiated a ~10% position in Sequenom, Inc. (Ticker: SQNM
) at $2.37. This
company is being acquired by Lab Corp. (Ticker: LH
) for $2.40 in cash via a tender offer,
which expires on September 7th
. I expect this deal to close on
, which would equate to a net gain of ~ 1.26% (~15%
annualized return). I see this as a rather straight forward deal with minimum
risk. It was rather easy to build a position at the bid price of $1.37.
I also picked up some Linkedin (Ticker: LNKD
) (long stock and short Puts).
Everyone knows this story and is probably a core holding for many large merger
arb funds. I see this as a very safe arb play and an area to park some extra cash.
I anticipate a closing by the end of November, which would equate to a net gain
of ~ 2% (~6% annualized return). A rather boring merger arb play, but sometimes
you need to be a bit conservative.
Finally, I initiated a position (~ 8% position) in Diamond
Resorts (Ticker: DRII
) at $29.50. This time share company is being acquired by Apollo for
$30.25 in cash via a tender offer. The first tender expired and has been
extended to August 24th
. I see a good chance that this deal will close on
if they’re able to quickly complete the debt offering.