Seeking Alpha
Editor's notes: Fund manager Chris DeMuth Jr., who's scored many deal price bumps this year, thinks the market drastically underestimates the probability of Gannett raising its offer for Belo. Asymmetric risk/reward.

It has been a bumpy road so far this year. Bumps in deal prices have included American Greetings (AM), Clearwire (CLWR), Dell (DELL), Dole Food (DOLE), Energy Solutions (ES), Outdoor Channel (OUTD), the T-Mobile (TMUS) acquisition of MetroPCS (PCS), Plains Exploration (PXP), and Sprint (S).

Of course, there is no time to celebrate. Instead, we are asking ourselves: what is next? We are seeking out the next definitive merger target to receive an overbid or a bump in deal terms. The dynamics of such positions can be quite positive as they are essentially auctions with an embedded...

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