Q: I’m guessing someone else already asked a similar question, but just in case: Do you still see NBLY as a good arbitrage play after the revised purchase price of $18.50?
It’s definitely frustrating (I guess that’s one of the risks when there’s a majority shareholder) but given the share price has adjusted lower I’m thinking it’s still a good arbitrage play from today’s price?
PCP already owns over 50% of the company so the risk of this not going through appears low)?
It’s definitely frustrating (I guess that’s one of the risks when there’s a majority shareholder) but given the share price has adjusted lower I’m thinking it’s still a good arbitrage play from today’s price?
PCP already owns over 50% of the company so the risk of this not going through appears low)?
5i Research Answer:
We are not happy with the adjustment in price but we think it is more likely to close at the lower price now. If the deal was in jeopardy, we think it would have been cancelled today rather than seeing a price adjustment. We would consider it an OK arbitrage from here, but investors have a right to be even more skeptical now. Market conditions have significantly changed for the better since the deal was first announced, so the downside risk on no deal has likely decreased a little as well (from current levels, at least).