Tuesday, September 08, 2009

Sold Highland Partners

I closed out my risk arb play in Highland Partners (Ticker: HLND) at $7.60 per share (unit). The buyout price is for $7.75, which is still pending SEC approval of the definite proxy and shareholder vote. This is a gas limited partnership and with the price of natural gas at ~ $2.50 / MMBtu, this deal is starting to look a bit expensive. With that in mind, I sold today for a 3.68% gain over a 9 week period, which equates to an annualized return of ~ 21%.

So as all of you have heard already, the European Union is launching an in depth investigation of Oracles (Ticker: ORCL) purchase of Sun Microsystems (Ticker: JAVA). They issued a provisional deadline of January 19, 2010 to complete the investigation. There’s no doubt that this deal will eventually close, but the question is when? I doubt that they’ll wait until the deadline to issue a decision. Anyways, I’m still hanging onto the Sun Microsystems play.

I nibbled at some Facet Biotech Corp. (Ticker: FACT) today. This company is in play with Biogen Idec (Ticker: BIIB) trying to acquire the company on the cheap. The bottom line is that Biogen Idec has got to increase its bid if they want to acquire this company. We’ll see how this plays out…


At September 12, 2009, Anonymous Anonymous said...

Totally agree with you. Might close before Jan2009. Will build a position again. Btw, thanks for the 13F-HR links - excellent resource! Keep it up, David

At October 02, 2009, Anonymous Anonymous said...

What your price expectation when the deal close ?

At October 04, 2009, Blogger Money Turtle said...

I'm assuming you're referring to Facet Biotech. The Street is looking for ~ $20 to seal the deal. So we'll see... I've sold out of the position, but it's a good risk reward.


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