Seems like there is about a 5% discount in this stock, due to the risk of the deal not happening. However, there are so many compelling reasons for it to happen, and there seems to be no anti-competitive aspect to the merger, that I wonder, what is the true risk? I am sure there are professionals that actually do analyze every merger for similar arbitrage opportunities, I just need to do some more research. It just seems that the discount is too great, therefore the stock is undervalued, IMO. BTW, my $120 calls only went up a bit since the stock went from $110 to $120 overnight. I think there is opportunity here for the stock to get to $123 - $124 in the next week, barring a major market meltdown.
I totally agree. I also think that some oldtimers (myself included) maybe reflect back to 2000 when UTC,HON,GE and Allied Signal were going back and forth. I was part of that, back then antitrust issues were involved. HERE THIS IS A WIN WIN ALL AROUND, THIS WILL SEEK THAT OFFER LEVEL @127.50 SOONER THAN LATER.