The allure of betting on mergers
A niche trading strategy is proving popular—and not just because of Elon Musk
Big deals rarely happen without big personalities. If Elon Musk were an uninteresting tycoon with a low public profile and a puritanical approach to promises, then shares in Twitter, a social-media platform, would be trading within a whisker of his $54.20 per share offer. The difference, or “spread”, between this offer and Twitter’s current trading price, of below $40, is a reminder that he is not.
This article appeared in the Finance & economics section of the print edition under the headline “Sweet dealmaking”
Finance & economics July 2nd 2022
- The battle between Asia’s financial centres is heating up
- Can Europe keep the lights on this winter?
- Why inflation looks likely to stay above the pre-pandemic norm
- Inflation in America soars to 8%. Or is it more like 6%?
- The latest desperate attempt to prop up the Turkish lira
- The allure of betting on mergers
- What past market crashes have looked like
- The case for strong and silent central banks
From the July 2nd 2022 edition
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The great-man theory of Wall Street
Why finance is still dominated by bold individuals
Hong Kong’s property slump may be terminal
Demographics and geopolitics will make a recovery harder
Why everyone wants to lend to weak companies
An unanticipated side-effect of Donald Trump’s election victory
American veterans now receive absurdly generous benefits
An enormous rise in disability payments may complicate debt-reduction efforts
Why Black Friday sales grow more annoying every year
Nobody is to blame. Everyone suffers
Trump wastes no time in reigniting trade wars
Canada and Mexico look likely to suffer