Monday, December 13, 2010

Some Airgas and Beckman Coulter

I started sniffing around at some more risk arb plays… I picked up some Airgas (Ticker: ARG) last week @ $65.76. This one is full of drama and I don’t think Air Products & Chemicals (Ticker: APD), Inc will just give up the fight just yet. The big question is whether the Airgas poison pill will hold up in court. From my M&A course, we were taught that poison pills have not been effective in preventing a takeover and is used as a tool to maximize the share price of the target company. We shall see shortly…

I also picked up a few shared of Beckman Coulter (Ticker: BEC) today @ $70.82. I see this eventually be taken out at $80+. It’s still in the early bidding process, but I have the conviction to hang in there with this one.

Finally, I’ve been trading Radware (Ticker: RDWR), which is rumored to be acquired by Riverbed (Ticker: RVBD) or Hewlett-Packard (Ticker: HPQ) for $45+. I basically just broke even on the trades. I don’t have a strong conviction on this one and I’m just going to leave this one alone.


At December 29, 2010, Anonymous Jeff Meyer said...

I think you made a good decision on buying Airgas, I did the same. We have the same mindset on this one, and hopefully it pays off for the both of us, I am ready to see what happens next month. Hmm... lets go! $$$

At December 29, 2010, Blogger Money Turtle said...

Airgas is a good company, but the board is not acting in the interest of the shareholders. I like this judge handling this case and there is a good chance that he invalidates the poison pill. The poison pill has already served its purpose of raising the offer price and now it should be up to the shareholders to decide and not the board.


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