This weekly column explains the reasons behind the movement in a selection of the largest U.S. cash merger arbitrage spreads from the past week as calculated by Merger Arbitrage Limited. We analyze the attractiveness and profitability of each spread going forward and indicate the trading position or action we have taken or intend to take based upon the analysis given.
Fitbit was the top performer from our index of the largest cash merger arbitrage spreads this week. This continues a resurgence in the performance of the stock which had previously traded significantly lower when news of the involvement of the EU Antitrust Authority first became public.
Following an extension to the 90 day EU competition investigation which is now scheduled to conclude by December 23, 2020, Google has offered additional concessions to help the deal progress. Amongst these concessions, Google said in a statement are