Risk arbitrage : an investor's guide /
The definitive guide to risk arbitrage, fully updated with new laws, cases, and techniques Risk Arbitrage is the definitive guide to the field and features a comprehensive overview of the theory, techniques, and tools that traders and risk managers need to be effective. This new edition is completel...
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| Main Author: | |
|---|---|
| Format: | Electronic eBook |
| Language: | English |
| Published: |
Hoboken, New Jersey :
John Wiley & Sons, Inc.,
[2018]
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| Edition: | Second edition. |
| Series: | Wiley finance series.
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| Subjects: | |
| Online Access: | CONNECT |
Table of Contents:
- Cover; Title Page; Copyright; Contents; About the Author; Chapter 1: Introduction; Chapter 2: What Is Risk Arbitrage?; Types of Transactions; Mergers; Tender Offers; Exchange Offers; Spinoffs; Recapitalizations; Activist Situations; Speculative Situations; Chapter 3: The Risk Arbitrage Industry; Chapter 4: Estimating the Return on a Risk Arbitrage Position; Simple Deals; Stock-for-Stock Deals; Stock-for-Stock Deals Using a Fixed-Exchange Ratio; Using Short Sales to Lock-in a Deal Spread; Complex Stock Merger Transactions; Collars on Stock-for-Stock Transactions; Example 1; Example 2.
- Actual Example of a Collar DealProrated Transactions; Leverage; Example; Leveraged Returns on Stock-for-Stock Transactions; Example; Spread Behavior over Time; Timing of Risk Arbitrage Transactions; Estimating Timing in Merger Transactions; Estimating Timing in Tender Offer Transactions; Chapter 5: Estimating the Risk of Arbitrage Transactions; Assess the Price History of the Target Company; Example; Estimating the Total Risk of a Transaction; Example; Using Other Methodologies to Assess the Risk of Arbitrage Transactions; Using the Market-Adjusted Return Method to Assess Risk.
- Estimating Changes in Market Values Using a Sample of Comparable CompaniesCalculating PRGO's Implied Price Using P/E Method; Calculating PRGO's Implied Price Using EV/Sales Method; Calculating PRGO's Implied Price Using EV/EBITDA Method; Conclusion; Chapter 6: Estimating the Probability of a Transaction's Occurrence; Gathering Information; Conducting Initial Research; Gathering Financial Information on the Proposed Transaction; Gathering Legal Information on the Proposed Transaction; Example; Vertical Mergers; Committee on Foreign Investment in the United States (CFIUS).
- The European CommissionMOFCOM; Gathering Tax and Accounting Information of a Proposed Transaction; Conclusion; Chapter 7: The Risk Arbitrage Decision Process; Dynamic Aspect of Risk Arbitrage Analysis; Example; Even-Money Probability-A Tool for Risk Arbitrage Decision Making; Even-Money Probability Formula; Calculating Complex Risk-Adjusted Returns; Chapter 8: Hostile Takeovers; Differences between Contested and Uncontested Takeovers; Takeover Defenses; Staggering the Tenure of the Board of Directors; Diluting Shares via Poison Pills; Using Defenses Based on Bylaws.
- Defending via Private LawsuitsUsing State Takeover Laws as a Defense; Other Types of Defenses; Regulatory Defenses; The Just-Say-No Defense; Defenses Against Activist Investors; Recapitalization; Sale of the Target Company; Predicting the Outcomes of Various Defensive Strategies; A Hostile Takeover Case: Airgas/Air Products; Use of Decision Trees; Example; Estimating Value in Contested Takeover Attempts; Analyzing Comparable Companies; Analyzing Comparable Transactions; Analyzing Discounted Cash Value; Summary of WFM Situation and Valuation Estimates; Risk Assessment; Summary.
