M&A: Profit From Long-Term Arbitrage Opportunity

Due to the gap between acquisition prices and stock prices, mergers and acquisitions of listed companies always bring arbitrage opportunities. ------------------------- Which acquisition cases are worth paying attention to? How can we profit from them? Follow this topic to explore more investment opportunities.

avatarMax87
10-01
$JBM HEALTHCARE(02161)$  Warren once said "that buy companies that you won't mind owning if NYSE/NASDAQ closed down for a year". To me, its' JBM Healthcare. On the surface, its' an unknown newly floated issue. However, underneath, it represents a powerpack of legacy trusted chinese healthcare brands that has went through thick & thin with chinese people. Brand value resides in consumer's trust in them & on this scale, JBM's brands is of the highest quality. Revisiting Warren's quote at the beginning of this write up, JBM Healthcare has used its cashflow surpluses to eliminate debt (*yes, its a zero debt company); while returning shareholder value via a stock buyback program that ended up purchasing 10% of outstanding shares &
avatarMax87
10-04
$HENLIUS(02696)$ #Privatisation Increasingly, this issue's take private bid by it's parent company, Fosun looks unfavorable to be voted through by it's shareholders due to a sudden index wide upwards revaluation. Coupled with a turnaround in earnings in recent quarter & the delay in getting necessary approvals from gov institution, it reduced likelihood & certainty of it going through. 

What Makes Kellanova All-time-high with M&A Estimate?

Since Mars broke the news in April that it was in advanced acquisition talks with $Kellogg's (K)$, Hershey has also expressed interest in Kellanova.The potential deal could be a major consolidation in the food industry this year.Kellanova, the snacks business unit spun off from Kellogg, has several well-known brands such as Cheez-It, Pringles and Pop-Tarts. $Hershey(HSY)$ is known for its chocolate and candy products, including brands such as Reese's, Kit Kat and Twizzlers.Mars has equally well-known brands including Dove, M&M and Snickers.While Mars appears to be in the lead in acquisition talks, Hershey also said.This suggests that Kellanova's value in the snack food market is recognized by
What Makes Kellanova All-time-high with M&A Estimate?

SIRI's Arbitrage Opportunity

One of Warren Buffett's $Berkshire Hathaway(BRK.A)$ $Berkshire Hathaway(BRK.B)$ positions that has underperformed one by a small percentage of the portfolio, but still has become the top shareholder through constant purchases, is the only media company $Liberty Media Series A(LSXMA)$ Liberty Media is a conglomerate that in turn has split its different businesses and issued separate stocks.If an investor is bullish on only one of these businesses, he or she can invest in a separate category without being exposed to the group company. $Sirius XM(SIRI)$ s one of Liberty's spun-off tickets, an exclusive satellite radio sy
SIRI's Arbitrage Opportunity

Is Macy's Over?

$Macy's (M)$ announced on Monday that it had terminated talks with Arkhouse and Brigade Capital Management, rejecting a $6.9 billion valuation for privatization, and the stock erased the gains it had made since the news broke seven months ago.For its part, the privatization buyer groupAlready holds over 5% of the shares and threatened a proxy fight with the company to gain 2 board seats, and the company side is quite cooperative, sharing very much detailed data, such as store profit and loss.The two price increases show that they still want to facilitate the acquisition.The first time from 21-24, the second a bit muddled, 24-24.9, basically did not move, the implication is that the consortium still want to buy, but do not want to give
Is Macy's Over?

Will Macy's Take the 6.9B Offer?

A group of activist investors led by Arkhouse Management and Brigade Capital Management raised their offer for $Macy's(M)$ again over the weekend, the third time they have raised their offer for the retail giant.The latest offer is $24.80 per share, a small increase from the previous $24, for a total valuation of about $6.97 billion.The news pushed Macy's shares up 12.6% on July 5Takeover offer historyDecember 2023: initial offer of $21 per shareMarch 2024: offer price increased to $24 per shareJuly 2024: latest offer reaches $24.80 per shareChallenges and Opportunities for Macy'sDespite the attractive acquisition offer, Macy's faces a number of challenges:Pressure on performance: revenue declined 1.2% year-over-year in the first quar
Will Macy's Take the 6.9B Offer?

Arkhouse increases bid for Macy’s takeover, $M's arbitrage is still a good choice

The tender offer for $Macy's(M)$ has unsurprisingly been increased, which was also expected. Investment consortiums Arkhouse Management and Brigade Capital, after further contact with the management and obtaining more financial information about the company, raised their previous offer of $21 per share to $24 per share.A customer exits the Macy's flagship department store in midtown Manhattan in New YorkMacy's management team is diligentI think at least they are motivated and committed to serving more stakeholders, aligning with the interests of small shareholders, large shareholders, and company employees. The key is that the increased offer is also beneficial to them. Therefore, their initial rejection of the $21 offer and
Arkhouse increases bid for Macy’s takeover, $M's arbitrage is still a good choice

M&A targes miskilled, take the drive now?

Recently, there has been some volatility in several ongoing M&A (mergers and acquisitions) cases, and the overall market is definitely not the main reason. For cash acquisitions, a general market downturn may actually highlight their attractiveness. The main reason for the volatility is the rejection of the $JetBlue Airways(JBLU)$ acquisition of $Spirit Airlines(SAVE)$ by a judge.The judge believed that this merger could affect industry pricing and harm the interests of some consumers, and thus it was rejected for antitrust enforcement reasons. This is considered an important victory for antitrust enforcement and may have an impact on future cases.The affected companies include: Hawaiian Holdings (HA)
M&A targes miskilled, take the drive now?

Keep the Macy's, Take the Juicy!

Macy's (M) rejected a $21 per share acquisition offer from private equity firms Arkhouse Management and Brigade Capital Management. In fact, this news should have leaked to some extent last week, as M's stock price dropped abnormally last week and performed significantly worse than its peers after the privatization offer was announced.This is very unusual.Generally, when there are acquisition or privatization offers, the stock price will be restricted. So, after the formal rejection by Macy's shareholders, the stock price actually rose. It looks like it will rise further.Arkhouse and Brigade had previously threatened to directly approach shareholders with the acquisition of the chain store and stated that they were highly motivated to complete the acquisition of Macy's and were prepared to
Keep the Macy's, Take the Juicy!

Famous Biotech M&A, new arbitrage coming?

AstraZeneca to Acquire Genexine $AstraZeneca PLC(AZN)$ announced on Tuesday that it has formally reached an agreement to acquire Chinese company $Gracell Biotechnologies Inc.(GRCL)$ or up to $1.2 billion, as part of its efforts to expand its cell therapy business. The deal includes $1 billion in cash, as well as non-negotiable cash contingent value rights of up to $0.30 per share, to be paid upon reaching specific regulatory and sales milestones. AstraZeneca stated in a Tuesday release that the cash portion of the deal is $1 billion, representing a 62.0% premium over GRCN's last closing price of $6.19 per share. With the additional contingent value, the total value of the deal could reach $1.2 billion.This
Famous Biotech M&A, new arbitrage coming?

What does Elliot step in mean to Match Group?

SummaryElliott Investment Management, known for activist investing, increased its stake in $Match(MTCH)$ , urging proactive measures to boost stock value. Match, the parent company of Tinder and Hinge, faces scrutiny due to slowing Tinder growth and executive turnover.Facts💼 Elliott Investment Management revealed a 3.30% stake in Match, pushing for performance changes, with specific demands undisclosed.💰 Match's market value sits around $10 billion, with its stock closing at $37.89 per share.📉 Pandemic-driven peak valued Match over $400 billion, but subsequent user decline led to stock depreciation.🌐 Tinder dominates with the most users globally, generating $1.8 billion in 2022, while Hinge soared with a 44% revenue growth.🔄 Concerns arise over Ti
What does Elliot step in mean to Match Group?

How to trade with Amazon iRobot merger case?

Amazon's potential acquisition of $iRobot(IRBT)$ faces uncertainty in Europe, with reports suggesting $Amazon.com(AMZN)$ may not offer concessions to appease antitrust regulators. The deadline for submitting plans to the European Commission regarding acquisition remedies is January 10.Facts🛑 Amazon spokesperson declined to comment on specific remedies for the EU, stating cooperation with regulatory agencies in reviewing the merger.💼 IRBT faces a crucial decision, having taken a high-interest loan for cash flow and acquisition-related matters in anticipation of the acquisition by Amazon.💰 Amazon previously lowered its offer for IRBT, indicating concerns about IRBT's valuation.🤔 Possible scenarios include A
How to trade with Amazon iRobot merger case?

How's HPE buyout deal of Juniper Networks?

Abstract $Juniper Networks(JNPR)$ saw a 22% post-market surge after reports of potential acquisition talks by $Hewlett Packard Enterprise(HPE)$ for about $13 billion, causing HPE's stocks to drop by 7.5%. Market sentiments suggest uncertainty despite the strategic fit with HPE's wireless business.Facts💼 HPE plans to acquire Juniper Networks (JNPR) for around $13 billion, causing a 22% surge in JNPR's market value.📉 HPE's stocks plummeted by 7.5% post-market upon news of the potential acquisition, highlighting market doubts about the Synergy between the companies.💰 JNPR's market value, after the 22% surge, stands at approximately $11.8 billion, representing a 10.3% premium from its prior market value of $9.
How's HPE buyout deal of Juniper Networks?