Merger Arbitrage

Updated and revised for the new global landscape, this expanded second edition of Merger Arbitrage takes you beyond a mere description of the arbitrage process into a full examination of how you can profitably add merger arbitrage to your portfolio, including practical introductions to the most popular vehicles for using this strategy in your everyday approach to investing.

This is the definitive book on one of the most effective forms of arbitrage. Conveniently organized into three comprehensive parts, this reliable resource starts out by giving you a succinct and applicable foundation on the basics of the arbitrage process, including the ins and outs of the strategy—cash mergers versus stock-for-stock mergers, sources of risk and return, and deal structure. Through insightful explanations of arbitrageurs operating in real-world situations, you gain cautionary advice on the downside risks and common missteps of drawing profit from these unique transactions. If you’re looking for returns regardless of market direction, this proven and versatile alternative hedge fund strategy lets you diversify risk and return streams in the most traditional plans. Even those investors new to merger arbitrage can use this quick-start resource to:

• Unravel the details of the incentives management needs for getting mergers done
• Take every available advantage to get full value of shares when a company is taken over
• Get up to date on the latest ways government is involved in the merger process

In-depth insights and expert advice focus on making merger arbitrage work in today’s dynamic market, including all the practical aspects of the discipline, such as red flags to watch for when abuse of shareholder value and conflicts of interests surface. Clear, authoritative guidance on such critical topics as leverage and options, shorting stocks, and legal recourse for inadequate merger consideration lets you use this investment strategy with confidence in every situation.

Merger Arbitrage: How to Profit from Global Event-Driven Arbitrage, Second Edition gives you everything you need to gain an edge in the merger arbitrage arena.