Price Behavior

[k9painter]

how do you think this plays into it?
Arbitrage Spreads On Pending Mergers & Acquisitions
AirTran Holdings Inc. (AAI), Southwest Airlines Co. (LUV)

Premium offered: $0.29 or 3.89%
Acquirer: LUV
Target: AAI
Offer per share: 0.303 share and $3.75 per share
Value of offer per share: $7.75
Value of outstanding common equity securities: $1,049,505,000
Acquirer share price: $13.18
Target share price: $7.46
Expected closing: By First Half 2011 3/2/2011
Annualized gain: 28.38%
Note: Under the terms of the agreement, AAI holders will receive $3.75 in
cash and 0.321 LUV share for each share as long as the total value of the
deal is between $7.25 and $7.75 a share. If LUV's stock jumps above $12.50,
the stock portion of the deal will be lowered so the overall consideration
of the merger equals $7.75 a share. Likewise, AAI holders will receive more
LUV shares if the stock falls below $10 to maintain the $7.25 a share price
tag.