Realogy Buyout: Scoop Up Some Spare Change

The vote on Realogy's (H) buyout by Apollo Management, LP is scheduled for March 30, and assuming shareholders approve it, the deal is expected to close in early to mid-April.

Given the current softness in the market, particularly anything associated with residential real estate, it's very likely that the deal will go through. We think a private equity buyer is less likely to get skittish than if Realogy were being purchased by a peer.

Realogy shares, however, were off 2% yesterday, in-line with the market, and it looks like there is an opportunity to scoop up some spare change.

Realogy shares are trading at $28.85. Should the deal go through, buyers will earn the $1.15 difference, around 4%. Assuming the deal closes in a month, that comes to nearly 60% annualized.

Of course, should the deal fall through, shares would likely tank.

Disclosure: We own shares of Realogy.

H 8 month chart: