Wednesday, September 24, 2008

It's The Final Count Down

Well, like the title says: It's the final count down... for Photon Dynamics (Ticker: PHTN). I entered into this arb play at ~ $13.65. There's been a lot of speculation that this deal may not close due to various reasons ranging from the small break up fee to financing issues. I agree there is risks in this deal falling apart, but each day that goes by without any news is good news. This company is being acquired by Orbotech for $15.60 in cash. The companies are just waiting for the OK from the Committee on Foreign Investments in the US (CFIUS). The expiration date for the CFIUS review is September 29th so we're getting very close. The acquirer is Orbotech (Ticker: ORBK) and you can see that the stock action of the acquiring company is going down compared to Photon Dynamics. I believe that the market is starting to bet that the deal goes through. We'll see next week...


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