All things excellent are as difficult as they are rare. – Spinoza
Scanning the merger arb tables today (1/18), ADAM caught my eye.
- Target: ADAM (7.63/share)
- Acquirer: EBIX (25.27/share)
- Terms: .3122 shares of EBIX for each share of ADAM = 7.89 at current market price
- Premium: 7.89/7.63 = 1.034.
- Close date: 1/31/11
- Details: 3.5mm termination fee.
I don’t think I need to tell you that 3.4% in <2 weeks is a nice chunk of change. Especially seeing as how you could’ve grabbed ADAM for 7.50 (5.2% premium) today.
1/14: Curious as to the figures around VRGY and LTXC.
1/18 Update: Nothing doing. VRGY/LTXC are involved in an interesting situation where VRGY offered to buy LTXC, then another company offered to buy VRGY, without LTXC. I thought about longing both, but the offer for LTXC is in VRGY which inflated the premiums.
1/14: ARG looks interesting…
1/18 Update: ARG has a huge premium and the board is retarded to oppose that bid. Still, it’s a gamble.