Sunday, June 22, 2008

More M&A Commentary

Playing the M&A arb spreads can generate a nice little income during a volatile market. Right now, I'm only focusing on M&A's that were announced after the start of this financial crisis. Deals such as Getty Images (Ticker: GYI), which I'm playing, is a strong deal. Whereas Penn National Gaming (Ticker: PENN), which was announced before the start of the financial crisis is falling apart. Penn National Gaming is current trading at $37.04, which is well below the buyout price of $67+. This deal will get negotiated down to a lower price or will not get done at all. In this environment, I would go for recently announced deals such as Apria Healthcare (Ticker: AHG), which is being acquired for $21 / share by Blackstone (Ticker: BX).


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