CFA Arbitrage Spreads On Pending Mergers & Acquisitions
Dow Jones Newswires - March 31, 2008 10:52 AM ET
The following provides information on selected mergers and acquisitions. All figures are updated by Dow Jones Newswires, with share prices as of 10 a.m. Monday EDT.
Annualized rate of return is based on Monday's date and the expected closing date and isn't compounded. Expected closing dates are compiled from company statements and reports, and when a time period is cited, that information is provided with that period's midpoint date, which was used to make the annualized return calculation.
Deals are listed alphabetically by target, and spreads don't include dividend or interest payments. "Premium offered" refers to the amount that the current value of the offer exceeds the stock price of the target. Deal values don't include the assumption of debt.
Bear Stearns Cos. (BSC), J.P. Morgan Chase & Co. (JPM)
Premium offered: -$1.17 or -11.11%
Acquirer: JPM
Target: BSC
Shares offered per share: 0.21753 share
Value of offer per share: $9.35
Value of outstanding common equity: $1,103,567,844
Acquirer share price: $42.96
Target share price: $10.51
Expected closing: Late second quarter 6/30/2008
Annualized gain: N/A
Note: JPMorgan will also buy 95 million newly issued shares of Bear Stearns common stock, or 39.5% of the outstanding Bear Stearns common stock after giving effect to the issuance, at $10 a share.
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