Closed Out Hospira / Portfolio Update
I closed out my short Put positions in Hospira (Ticker: HSP) this week. I generated a decent gain and decided it was a good time to reduce my risk a bit. This was an unhedged (naked) position so if there are any hiccups with the US or EU antitrust regulators, I would be in a little bind. On the other hand, I continued to build a short Put position in Receptos (Ticker: RCPT) and I believe this deal will close rather quickly without any antitrust issues.
I haven’t done this for a while, but here is an overall snap
shot of my current non retirement portfolio holdings and the percentage weighting:
posted by Money Turtle @ 4:07 PM
6 comments
6 Comments:
TEVA/ASPX deal closed in 37 days. Is it the same time frame for CELG/RCPT deal? where can i get more information on M/A pending and regulatory approvals?
Celgene commenced the tender offer today and will expire on 8/24. This deal should close by the end of August.
There are really no free sites that dig up regulatory approvals / timelines for you. This is information that you will need to dig up yourself (going to the filings and regulatory sites) or pay a good amount to obtain. Dealanalytics.com is a good site that provides this type of information, but they do charge a bit for this info.
You think there is any chance of an overbid?
The options prices are indicating a higher bid, but I’m not betting on one. So no, I don’t think there will be a higher bid for RCPT.
Why a 5 dollar spread if it is closing by end of August?
The spread (~ 2%) is probably attributed to a potential any clinical events that could cause a material adverse scenario. From my experience this type of spread is fairly typical in a biotech buyout.
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