Equal Energy (NYSE:EQU) entered into a definitive agreement to be acquired by PetroFlow Energy at $5.43 per share back in December 2013. Right after this agreement, Equal's shares were trading in the range of $5.30-$5.40 leaving only minimal gains for merger arbitrageurs; however, recently the price declined to $4.30-$4.70 with only two weeks left till the effective merger date (1st of May). Investors seem to be overly concerned with a possibility of a merger failure and do not recognize the upside from the other competing bids and proposals.
At current share price levels investors are likely to realize upside potential of at least 15%-25% in a few weeks or a slightly more optimistic 70%-180% to be reached by...
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