Budweiser (NYSE:BUD) continues to trade at a big discount to the $70 all cash acquisition price from InBev. On Thursday InBev (INBVF.PK) affirmed that the deal is on track.
I hear from my investment banking experts that the deal is fully funded. However, the arbitrageurs who would normally be bidding up BUD on the 7.3% discount to the deal price are not getting the funding to play the game. The prime brokers simply are not letting any of their liquidity hoard out of their hands as hedge funds continue to blow up.
It is just another sign of the times.