Will Ford Buy Fiat Chrysler?

| About: Ford Motor (F)
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Fiat Seeks Buyer.

Verizon well positioned to get Yahoo!

AB InBev sells Peroni to Asahi.

Welcome to the Big Two? issue of M&A Daily


Ford (NYSE:F) could make a bid for Fiat Chrysler (NYSE:FCAU) after Fiat's failed attempt to reach a deal with General Motors (NYSE:GM). Other bidders could include Toyota (NYSE:TM) and Volkswagen (OTCPK:VLKAY). Among the automobile investment opportunities, Fiat Chrysler spin-off Ferrari (NYSE:RACE) has been a favorite short.

My favorite long in this industry is FFP, which owns 10% of PSA Peugeot Citroën.


Commitments for the ADT (NYSE:ADT) debt offering for its acquisition by Apollo (NYSE:APO) are due today. The $0.23 net arbitrage spread offers a 6% IRR if the deal closes next month.


Yahoo! (YHOO) is currently weighing bids from Verizon (NYSE:VZ), TPG and Cerberus' YP Holdings. YP is working with Goldman Sachs (NYSE:GS) on their bid.


United (NYSE:UAL) is nearing an agreement with activists to accept board changes.


The preliminary proxy has been filed for the Coherent (NASDAQ:COHR) acquisition of ROFIN-SINAR (NASDAQ:RSTI).


AB InBev (NYSE:BUD) is selling Peroni and assorted other brands to Asahi (OTCPK:ASBRY) to help fix antitrust issues with the acquisition of SABMiller (OTCPK:SBMRY). The acquisition's arbitrage spread offers an IRR of 16% if the deal closes by September.


The Louisiana Gaming Control Board approved the Pinnacle (NYSE:PNK) deal with Gaming & Leisure Properties (NASDAQ:GLPI). More to come in future editions of M&A Daily…

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Disclosure: I am/we are long CAB, YHOO, PNK, PLCM.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law. We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).

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