Merger arbitrage

Strategie om deal-spread te verzilveren.

Merger arbitrage is een hedge fund strategie. Speel op de SPREAD tussen huidige target-price en de aankondigde deal-price.

Het mechanisme:

  1. Deal announced: 'Acquirer biedt $100 per share voor Target'
  2. Target koers springt van $70 naar $95 (niet de hele $100 — uncertainty over deal closure)
  3. Spread: $5 ($100 deal − $95 current)
  4. Bij close (6-12 maanden later): you collect $5 → ~5-7% annualized

Risico's:

  • Deal breakage: regulators block, financing falls through → target stock crashes back to $70
  • Long process: deals can take 12-24 months
  • Adjustment: deal terms can wijzigen mid-stream

Famous failed deals:

  • Allergan-Pfizer (2016): blocked by tax inversion rules. Allergan crashed.
  • AT&T-T-Mobile (2011): antitrust blocked. T-Mobile rallied actually (more independent value).

Risk-adjusted returns:

Merger arb has historically been low-volatility 5-10% returns. Good for hedge funds, not too exciting for retail.

Voor retail:

Niet gemakkelijk. Vereist deep deal-analysis. Most retail underperform via merger arb.

Alternatief: M&A-focused ETFs (MRGR — IndexIQ Merger Arbitrage ETF).

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Merger arbitrage · Insiviz