This note introduces the concept of danger or merger arbitrage. Risk arbitrage is an investing strategy that attempts to capitalize on announced transactions pertaining to mergers, spin off, corporate restructuring, liquidations and takeovers.
Note on Risk Arbitrage Case Study Solution
The arbitrageur tries to create riskless profit by simultaneous purchase or sales of assets that are part of the announced transaction. In the the note we summarize the basics sorts of deals and systems to evaluate their profitability.
PUBLICATION DATE: October 09, 2009 PRODUCT #: W04340-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING