arbitrage involving risk; as in the simultaneous purchase of stock in a target company and sale of stock in its potential acquirer; if the takeover fails the arbitrageur may lose a great deal of money
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takeover arbitrage::noun | Spocien Dictionary
| Type | Words |
|---|---|
| Synonyms | risk arbitrage |
| Type of | arbitrage |
Examples of takeover arbitrage
takeover arbitrage
The bet in a merger arbitrage is that such a spread will eventually be zero, if and when the takeover is completed.
From the en.wikipedia.org
First was merger arbitrage, a strategy in which traders typically buy the stock of a possible takeover target and short that of the acquirer.
From the bloomberg.com
Merger arbitrage generally consists of buying the stock of a company that is the target of a takeover while shorting the stock of the acquiring company.
From the en.wikipedia.org
