qantas takeover arbatrage oppurtunity?

Discussion in 'Shares & Funds' started by Handyandy, 27th Dec, 2006.

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  1. Handyandy

    Handyandy Well-Known Member

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    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
     
    Handyandy, 27th Dec, 2006
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    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".
     
    Simon Hampel, 27th Dec, 2006
    #2
  3. Handyandy

    Handyandy Well-Known Member

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    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
     
    Handyandy, 10th Jan, 2007
    #3
  4. Glebe

    Glebe Well-Known Member

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    Glebe, 11th Jan, 2007
    #4
  5. Handyandy

    Handyandy Well-Known Member

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    Sutherland
    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
     
    Handyandy, 11th Jan, 2007
    #5