![]() Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. ![]() Seeking Alpha's Disclosure: Past performance is no guarantee of future results. In order to maximize total returns for our investors, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law. Rangeley invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. I have no business relationship with any company whose stock is mentioned in this article.Ĭhris DeMuth Jr is a portfolio manager at Rangeley Capital. ![]() I am not receiving compensation for it (other than from Seeking Alpha). I wrote this article myself, and it expresses my own opinions. If you would like to receive breaking news on M&A opportunities via e-mail, please subscribe to M&A Daily.Īnalyst’s Disclosure: I am/we are long EMC, MEG, TICC, HUM. Staples ( SPLS) and Office Depot ( ODP) extended their deal review's timing agreement with the FTC to December 8.īear markets make people a lot of money, they just don't know it at the time. The $35.37 net arbitrage spread offers a 24% annual return to a close by next August. Humana ( HUM) signed a memorandum of understanding to settle litigation related to its acquisition by Aetna ( AET ). UTi Worldwide ( UTIW) filed the definitive merger agreement for their acquisition by DSV ( OTCPK:DSDVY). NexPoint sent TICC Capital (TICC) shareholders their definitive proxy material asking them to vote down the current deal and the re-election of TICC's board. For more on this deal, check out How To Play The $340 Billion Merger Between AB Inbev And SABMiller. At least some SABMiller holders want the next bid to be in all stock. Today, the 43.50 versus 45 bid-ask spread is surmountable, if the two sides want to surmount it. AB Inbev bumped the bid to 42.15 and is now bumping again to 43.50. The original bid-ask spread in the AB Inbev ( BUD) offer for SABMiller ( OTCPK:SBMRY) was about 40-45 pounds per share. For details, read, Catalysts Drive Media General's 20% Upside. It is worth at least $18, but could go substantially higher if multiple bidders decide that they want it. The next bid will probably be around $17 per share. The deal will probably close in mid-2016.Ī bidding war is brewing for Media General ( MEG). EMC shareholders will get about 0.111 shares of new VMW tracking stock per share. EMC shareholders will get $24.05 per share in cash as well as tracking stock linked to some of EMC's interest in VMware ( VMW). Meanwhile, here are some examples of such opportunities in today's market.ĭell agreed to buy EMC ( EMC) in a cash-and-stock deal valued at about $67 billion. You can receive actionable research first on StW. Sifting the World members receive exclusive access to event driven, value investing, and arbitrage opportunities. We are more than three years past the point where the Dell-EMC deal closed, so we decided to take a look back and see if Dell was wise to take on such debt or not.Welcome to the Dude, You're Getting EMC edition of M&A Daily. The arrangement represented great returns for his shareholders, and Tucci got to exit on his terms, telling Elliott to take a hike (even if it was Elliott that got the ball rolling in the first place).ĭell eventually took itself public again in late 2018, probably to help raise some of the money it needed to pay off its debts. Whatever the reason, once the company went up for sale, Dell and private equity firm Silver Lake came ‘a callin with an offer EMC CEO Joe Tucci couldn’t refuse. (Elliott is currently turning the screws on Twitter and SoftBank.) In particular, Elliott reportedly wanted the company to sell one of its most valuable parts, VMware, which it believed would help boost EMC’s share price. ![]() When EMC put itself up for sale, it was under pressure from activist investors Elliott Management to break up the company. Years later, where are they in terms of paying that back, and has the deal paid for itself? Dell’s 2015 decision to buy EMC for $67 billion remains the largest pure tech deal in history, but a transaction of such magnitude created a mountain of debt for the Texas-based company and its primary backer, Silver Lake.ĭell would eventually take on close to $50 billion in debt.
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