Seeking Alpha
Editor's notes: Value investor Alpha Vulture takes the other side of the WH buyout, saying the evidence points towards a deal closing soon. 14% absolute return in a short period.

Three months ago, Yuanxi Zhang wrote an Alpha-Rich article arguing that WSP Holdings (WH) would be a timely short candidate, and he proved to be right. The shares were at the time trading relative close to the going private price of $3.20/share while there were legitimate concerns about whether or not the deal would go through. Since then the share price has gone down, the acquirer has reconfirmed his intention to take the business private and the delayed annual report has been filed last week. The lower price with the reduced uncertainty make WSP Holdings an attractive merger-arbitrage play. The shares are currently trading at $2.77, and after a $0.05/share ADS cancellation fee, this risk arbitrage offers...

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