Tuesday, November 22, 2011

Bought Some Global Education & Technology Group

The China plays have been good to me so far. I picked up a few shares of Global Education & Technology Group Limited (Ticker: GEDU) yesterday at $10.54. This company is being acquired by Pearson PLC (the publisher of the Financial Times) for $11.006 per share. Normally I would not look too much into a deal like this because a deal usually takes 3 months or so to close if everything goes well. I decided to read the press release for the fun of it and the thing that caught my eye was that they expect to close this deal before the end of the fourth quarter of this year. Now this starts getting interesting and I ran some quick numbers and this looks like a decent merger arb play. I'm looking at generating a total return of 3.95% (34.68% annualized return assuming a closing date of 12/31/11) with a purchase price of $10.54. I’ll take this kind of return anytime…


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