- Lorillard (LO) trades more than 10% below the acquisition price that Reynolds American (RAI -0.2%) has offered up for the company in what some analysts think makes for an enticing short-term bet for investors.
- "The market is mispricing the probability that the deal closes," says Morningstar analyst Philip Gorham.
- The Lorillard trade isn't without some risk, shares could tumble as much 20% if a deal gets scuttled.