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  • Schlumberger’s bid for Cameron makes sense, analysts say [View news story]
    The SLB deal may make it easier for HAL/BHI to get approval...They will still be a distant number 2
    Aug 28, 2015. 08:28 PM | 1 Like Like |Link to Comment
  • Is The Pepco Merger Finally Going To Close? [View article]
    jfeldman415-Thanks for saying what I wanted to. And what is factual.
    Aug 26, 2015. 04:41 PM | 2 Likes Like |Link to Comment
  • Merger Arbitrage Blog- Part Three [View instapost]
    stockquestioner-The dividend if the price gets there is more than 5%. Good points.
    Aug 25, 2015. 07:41 PM | Likes Like |Link to Comment
  • Is The Pepco Merger Finally Going To Close? [View article]
    21245871-good comments. One thing to add: POM was an arbitrage stock. Merger arbitrage is about buying several stocks for small gains. So trendlines, moving averages, and other technical indicators aren't all that relevant here.


    I do feel pain as I am long POM. Also I have written 27 articles on SA and some more on other sites and my track record has been extremely good. There's always a lesson to be learned from every trade, especially losing ones.
    Aug 25, 2015. 07:38 PM | 1 Like Like |Link to Comment
  • Is The Pepco Merger Finally Going To Close? [View article]
    jfeldman415-I had read the above as well. My thought is that Exelon will do almost anything to salvage this deal. But I have no idea if it will enough.
    Aug 25, 2015. 07:25 PM | Likes Like |Link to Comment
  • Is The Pepco Merger Finally Going To Close? [View article]
    That is the argument against merger arbitrage stocks. In retrospect you were right. Risk/reward was about 8-1. I didn't see this coming today. Several people I speak with didn't as well.
    Aug 25, 2015. 07:22 PM | Likes Like |Link to Comment
  • Merger Arbitrage Blog- Part Three [View instapost]
    POM-agree that it is speculative now. I really didn't expect today's decision. I know several others who feel the same. I was wrong heading into today now feel like the decision will probably hold....but would like to hear from others...
    Aug 25, 2015. 07:07 PM | Likes Like |Link to Comment
  • Merger Arbitrage Blog- Part Three [View instapost]
    MT,

    Over the past few days I doubled my position in SIAL. Also added to CB and ALTR. What else have you been buying?
    Aug 25, 2015. 06:56 PM | Likes Like |Link to Comment
  • Is The Pepco Merger Finally Going To Close? [View article]
    Company statement

    Potomac Electric Power: Exelon-Pepco Holdings Statement On Decision BY THE PUBLIC SERVICE COMMISSION OF THE DISTRICT OF COLUMBIA

    Aug. 25,

    Exelon Corporation (NYSE: EXC) and Pepco Holdings Inc. (NYSE: POM) today issued the following statement in response to the Public Service Commission of the District of Columbia's decision on the companies proposed merger.

    We are disappointed with the Commissions decision and believe it fails to recognize the benefits of the merger to the District of Columbia and its residents and businesses. We continue to believe our proposal is in the public interest an d provides direct immediate and long-term benefits to customers, enhances reliability and preserves our role as a community partner. We will review our options with respect to this decision and will respond once that process is complete.
    Aug 25, 2015. 12:58 PM | Likes Like |Link to Comment
  • M&A Daily: 4-Step Financial Porn Defense [View article]
    Chris-Are you getting any recent checks about the BHI-HAL deal?
    Aug 25, 2015. 10:47 AM | 1 Like Like |Link to Comment
  • Halliburton Has A $3.5 Billion Baker Hughes Problem [View article]

    ValueAct’s Ubben Confident in Haliburton’s Deal for Baker Hughes

    By
    David Benoit

    The stock market turmoil, particularly in energy sector, has been shaking investor confidence in a few big deals over the past week.

    But Jeff Ubben, CEO of ValueAct Capital Management LP, isn’t worried about one of his big investments.

    ValueAct has amassed a $2.5 billion bet on Halliburton Co.’s planned purchase of Baker Hughes Inc., announced last November after some drama between the two oilfield services companies.

    Since then the stocks of both have dropped, and currently Baker Hughes is trading significantly below the deal price.

    At recent prices Monday, a wild and wacky trading day, Baker Hughes shares were more than 23% below the value of the offer.

    Baker Hughes was down 5.5% to $46.78 while the deal, in cash and stock, would be worth $57.79. When the duo announced the deal in the middle of November, it was valued at $78.62 a share.

    Halliburton stock is down 3% to $34.63.

    A widening spread doesn’t mean a deal is in trouble, but does reflect investor concern.

    It was after the deal was struck that ValueAct arrived on the scene in January. The San Francisco hedge fund tends to focus on management in its investments and is often activist.

    In betting on both sides of the deal, the fund has said it expects Halliburton management to do well with the combined entity.

    Even with the spread widening, which also includes some concerns about antitrust, Mr. Ubben is still excited about the deal.

    “We love it,” Mr. Ubben says in an email. “We see a management team committed to doing what it takes to complete the deal. As a long-term investor, I dream about management teams tough enough to create value through M&A at the bottom of a cycle. This is HAL.”
    Aug 24, 2015. 07:32 PM | Likes Like |Link to Comment
  • Merger Arbitrage Blog- Part Three [View instapost]
    BHI-

    ValueAct’s Ubben Confident in Haliburton’s Deal for Baker Hughes

    The stock market turmoil, particularly in energy sector, has been shaking investor confidence in a few big deals over the past week.

    But Jeff Ubben, CEO of ValueAct Capital Management LP, isn’t worried about one of his big investments.

    Jeff Ubben —Jason Henry for The Wall Street Journal
    ValueAct has amassed a $2.5 billion bet on Halliburton Co.’s planned purchase of Baker Hughes Inc., announced last November after some drama between the two oilfield services companies.

    Since then the stocks of both have dropped, and currently Baker Hughes is trading significantly below the deal price.

    At recent prices Monday, a wild and wacky trading day, Baker Hughes shares were more than 23% below the value of the offer.

    Baker Hughes was down 5.5% to $46.78 while the deal, in cash and stock, would be worth $57.79. When the duo announced the deal in the middle of November, it was valued at $78.62 a share.

    Halliburton stock is down 3% to $34.63.

    A widening spread doesn’t mean a deal is in trouble, but does reflect investor concern.

    It was after the deal was struck that ValueAct arrived on the scene in January. The San Francisco hedge fund tends to focus on management in its investments and is often activist.

    In betting on both sides of the deal, the fund has said it expects Halliburton management to do well with the combined entity.

    Even with the spread widening, which also includes some concerns about antitrust, Mr. Ubben is still excited about the deal.

    “We love it,” Mr. Ubben says in an email. “We see a management team committed to doing what it takes to complete the deal. As a long-term investor, I dream about management teams tough enough to create value through M&A at the bottom of a cycle. This is HAL.”
    Aug 24, 2015. 05:19 PM | 1 Like Like |Link to Comment
  • Merger Arbitrage Blog- Part Three [View instapost]
    jag/Chris-also agree re ALTR......
    Aug 24, 2015. 04:35 PM | Likes Like |Link to Comment
  • Merger Arbitrage Blog- Part Three [View instapost]
    RCPT-tender expires tonight.

    POM-D.C. meeting tomorrow morning. I have article coming off embargo in morning.

    PPO-Wednesday close
    Aug 24, 2015. 04:32 PM | Likes Like |Link to Comment
  • Top Merger Stocks Held By Fund Managers [View article]
    Polypore since I wrote the article company had news which moved the spread to almost zero.....deal set to close Wednesday....only .04 or .05 cents left

    Hospira-half of percent left but about 6% Annual return assuming a late Sept close

    Altera-12.1%. This one was part of the market carnage Friday
    Aug 23, 2015. 07:54 PM | Likes Like |Link to Comment
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