Wednesday, September 18, 2013

Onyx Just About Done

Today, Amgen (Ticker: AMGN) received antitrust approval for its acquisition of Onyx Pharmaceuticals, Inc (Ticker: ONXX). The tender offer expires on October 1st and this deal will close after the expiration of the tender offer. I’ve been selling the October 120 Puts and pocketing a decent premium. I’m surprised the spread remained this wide, but I guess some people were concerned about a potential delay in gaining the antitrust approval. I’ve already tendered my Onyx shares so in about two weeks I expect the cash to hit my account.


At September 19, 2013, Anonymous Anonymous said...

what you think about shorting some VPHM oct 35 puts?

At September 19, 2013, Blogger Money Turtle said...

I'm not playing VPHM yet. I still see lots of risk in this one.

At September 25, 2013, Anonymous Anonymous said...

Hi MT,
Have you looked at BBRY? The stock was trding at around $9 after the takeovefr news. Now it is down to $8.2. Is the market assuming a high risk that the deal won't go through? How long do you think it wil take for the takeover to be complete? What is your overall opinion on this? Is this a buying opportunity?

Also, have you looked at SPRD lately?

At September 25, 2013, Blogger Money Turtle said...

There's no definitive agreement in place with Fairfax's potential acquisition of Blackberry. It's just a tentative offer and the offer price may change based on what they uncover during the due diligence process. Lots of risk in this one so I'm not playing it right now. They have a go shop that ends on 11/4. Still need a definitive merger agreement with financing in place, which has not happened. Still a long way to go with this one. I would say if this were to happen, it could close sometime in Q2, 2014.

I have a large position in SPRD and I like the odds of this closing soon. Just need PRC approvals, which should happen soon. It's a state owned enterprise buying this company so I can't even imagine any regulatory issues popping up.


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