Author Topic: CVS & AT&T Risk Arb  (Read 440 times)

wescobrk

  • Hero Member
  • *****
  • Posts: 647
CVS & AT&T Risk Arb
« on: December 07, 2017, 03:03:06 PM »
Anyone care to voice opinion on probability of CVS and AT&T deal going through for a risk arb play?
Maybe 75% for CVS and 50% for Time Warner?


sleepydragon

  • Sr. Member
  • ****
  • Posts: 398
Re: CVS & AT&T Risk Arb
« Reply #1 on: December 14, 2017, 05:01:37 PM »
Anyone care to voice opinion on probability of CVS and AT&T deal going through for a risk arb play?
Maybe 75% for CVS and 50% for Time Warner?

I bought a little bit of TWX in my tax free account yesterday. Given the valuation of the FOX/DIS deal, it seems TWX's downside is limited. If the deal close, the spread is almost 20% now. If the deal does not close, TWX is trading at much lower PE compared to FOX. I had to sell/take profits on my other holding (WFC) in the tax-free account to do this though :(