Join our investing community

qantas takeover arbatrage oppurtunity?

Discussion in 'Shares' started by handyandy, 27th Dec, 2006.

  1. handyandy

    handyandy Well-Known Member

    Joined:
    6th Jun, 2006
    Posts:
    312
    Location:
    Sydney Nsw
    Hi All

    Just wondering if anybody has a view on the current Qantas takeover?

    Presently trading at $5.20 takeover will be at $5.60, does this represent an arbitrage oppurtunity?

    Cheers
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    The risk of course being that the takeover may not happen ... indeed some commentators have suggested that the currently discounted price is the market's way of saying "we don't think it will necessarily get approved".
     
  3. handyandy

    handyandy Well-Known Member

    Joined:
    6th Jun, 2006
    Posts:
    312
    Location:
    Sydney Nsw
    So far so good;)

    Bought a number of shares at $5.22. What I can't determine at this point is whether there will be a dividend distribution prior to the takeover.

    If no dividend then I should clear 38c otherwise it could be as high as 49c plus an imputation credit.

    Cheers
     
  4. Glebe

    Glebe Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    932
    Location:
    Sydney, NSW
  5. handyandy

    handyandy Well-Known Member

    Joined:
    6th Jun, 2006
    Posts:
    312
    Location:
    Sydney Nsw
    Yep I'll make that.:D

    Themain thing is whether I will get it. As mentioned I can't find anything about the offer that mentions it.

    Cheers