Tuesday, October 13, 2009

Almost There for Centennial Communications

I can finally see the light at the end of the tunnel in the Centennial Communications (Ticker: CYCL) / AT&T (Ticker: T) deal. This one was a longgg wait for those, who got in early. AT&T is acquiring Centennial Communications for $8.50 in cash. I initiated a position in Centennial Communications on 9/18/09 and continued to add with the last purchase on 10/5/09. Today, the Justice Department cleared the deal so the only obstacle remaining is clearance by the FCC, which should occur very shortly. AT&T has stated that they expect this deal to close early Q4, which in my mind means end of October. Assuming an end of October close, my return on this risk arb play will be 6.51%, which equates to an annualized return of 56.42%.

Here’s a summary of my purchases:

9/18 2X @ $7.98
9/22 0.3X @ $7.98
9/22 0.7X @ $7.99
9/29 0.2X @ $7.93
10/5 0.1X @ $7.93


Post a Comment

<< Home