Thursday, February 28, 2013

Constellation Brands, Inc.

With Nexen, Inc out of the way… I’m on the look out for the next special situations play. I’ve started building a position in Constellation Brands, Inc. (Ticker: STZ). This company will be the prime beneficiary in Anheuser-Busch InBev’s (Ticker: BUD) acquisition of Grupo Modelo. Anheuser-Busch has agreed to sell control of the Modelo brands such as Corona in the US and a Mexican brewery to Constellation Brands for a very fair (cheap) price. There is a good probability that the DOJ will accept this remedy in order to allow Anheuser-Busch to proceed with its acquisition of Grupo Modelo. This will be a transformational deal for Constellation Brands making it the 3rd largest beer company in the US. I really like this deal for Constellation Brands and should know in mid-March regarding the decision from the DOJ. I can see Constellation Brands easily going to $50+ with the ok from the DOJ.

4 Comments:

At March 01, 2013, Anonymous Anonymous said...

How did you come up with a $50 target?

 
At March 05, 2013, Anonymous Anonymous said...

MT,

Is there a favorite free web site that you and anyone else uses to identify previously announced deals and what the current price arbitrage spread may be? A few of my previous favorites have all converted to subscription pay models.


Regards,

inforesource7

 
At March 05, 2013, Blogger Money Turtle said...

Here are some of the sites I use to gather some ideas.

http://www.sinletter.com/merger-arbitrage/

http://www.dealanalytics.com/php3/index.php3

http://intrinsicedge.blogspot.com/

http://www.indexiq.com/etfs/etfsiqh/iq-merger-arbitrage-etf.html#holdings

 
At March 06, 2013, Anonymous Anonymous said...

610MT,

Thank You for the web site links. sinletter was exactly what I was looking for.


Regards,

inforesource7

 

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