本帖隐藏的内容

Preface ix
Chapter 1 Introduction 1
Derivation of Risk Arbitrage
1
The Arbitrage Community 4
A Changing Community from the 1970s
to 2000
6
1970s 6
1980s 10
1990s 14
2000 17
Chapter 2 Merger Arbitrage
21
General 21
Gathering Information 22
Figuring of Parities
26
Determination of the Time Element 27
Return on Investment 29
The
Risks 29
v
vi CONTENTS
Average Expected Returns 33
Taking a Position
35
Turning a Position 37
Consummation 38
Tax Strategy 40
Treatment
of New Convertible Securities 42
Antitrust Considerations 45
Summary
46
Chapter 3 Merger Arbitrage: Practical
Applications 47
Mergers Prior
to 1971 47
Generic Calculation of Co. B. Being
Acquired by Co. A (Co.
B/Co. A) 48
Scientific Data Systems/Xerox 50
Hartford Fire
Insurance/I.T.&T. 52
Canada Dry/McCall’s/Hunt Foods
55
Eversharp/Warner Lambert Pharmaceutical 59
Alloys Unlimited/Plessey,
Ltd. 66
Chubb Corp./First National City Corp. 70
Mergers from 1971 to the
Present 73
New England Nuclear Corp. with Dupont
DeNemours Inc.
73
Reliance Electric/Exxon 76
CIT Financial/RCA
78
Richardson-Merrell/Dow Chemical 81
Twentieth Century Fox Film Corp.
82
Use of Options in Merger Arbitrage 84
Utah International/General
Electric
(without options) 84
Utah International/General Electric
(with
options) 85
Chapter 4 Cash Tender Offers 89
Situations Prior to 1971
89
Cash Tender Wave of the Late 1970s and
Early 1980s 95
Contents
vii
Introduction 95
Babcock &
Wilcox/McDermott/United
Technologies—Merger Chronology
(All information is
from prospectus and joint
proxy statement issued February 22, 1978)
96
Carborundum/Kennecott Eaton Offer of
$47/Share 99
Rosario/Amax
100
Warner Swasey/Bendix/Dominion Bridge 102
Pullman/Wheelabrator
Frye/McDermott 106
Liggett Meyers/Grand Metropolitan Hotels/
Standard
Brands 108
Hobart/Canadian Pacific/Dart & Kraft 111
St. Joe
Minerals/Seagrams/Fluor Corp. 112
Chapter 5 Other Risk Arbitrage Situations
117
Exchange Offers 117
Recapitalizations 120
Spinoffs 123
Stub
Situations 125
Limited Risk Arbitrage 129
Chapter 6 Corporate
‘Freezeins’:
The Subterfuge Syndrome 133
Introduction 133
Some Notable
Examples 134
Conclusion 141
Chapter 7 Active Arbitrage 143
The
Bache/Pru-Bache Years (1967–1991) 144
Great Western United Corporation
144
Gerber Products Company 145
The McGraw-Hill Corporation 146
The ERC
Corporation of Kansas City,
Missouri 147
Amax Incorporated 148
Houston
Natural Gas 148
viii CONTENTS
The Wyser-Pratte Years: Years
of
Increasing Activism (1991–Present) 149
A New Beginning 149
Evolution
of the Wyser-Pratte Shareholder
Rights By-Law 150
Transition
157
Chapter 8 Summary and Conclusions 159
Appendix A 163
Appendix B
181
Appendix C 185
Notes 273
Bibliography 279
Index 283