Aribtrage Opportunity in BULM gold stock (bought out today)
Possible Arbitrage Opportunity in BULM --------------------
BULM is trading at $1.09 / share when the offer was for .45 shares of EMXX and .11 cents cash. Assuming EMXX is trading at $2.50 per share which is LOWER than the current market price (around $2.55) that makes the compensation for BULM shares worth approximate $1.23 - a 10% premium to current prices.
Throw in the fact that BULM management and friendly shareholders own 45% of the shares - they only need a small minority to push this transaction through. This looks like a pretty good 5-10% arbitrage opportunity to me.
Anybody know of any fault in my logic?
Your Friendly Neighborhood, Spider
Disclosure: Owned BULM shares previous to today and bought at 1.04 and 1.12 today - and may buy more.