The strategic investor, Isuzu Motors, is making a partial offer to acquire shares at $1.92 (current $1.58). It has guaranteed to acquire at least 609 shares per board lot (2,000 shares) from any shareholders tendering shares for the offer. If all available shares are tendered, then Isuzu will take up only the guaranteed 609 shares per lot. However, if less shares are tendered, then they may accept more than the 609 shares.
The risk is that after the offer, the price falls below the current price. You make $0.34 per share on the guaranteed offer but the rest is at risk. But this is as good an arbitrage opportunity as I have seen for a long time. Happt hunting!
Tuesday, June 21, 2005
Boring, boring, boring!
The market is always directionless from end of March thru end of June. Most of the gains come in October thru March. The rest of the time, it's best to sit tight and watch the grass grow.
For small brokers this is not ideal, we need turnover!
For small brokers this is not ideal, we need turnover!
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