Mergers and acquisitions

3 videos
Companies often buy or merge with other companies using shares (which is sometimes less intuitive than when they use cash). This tutorial walks through the mechanics of how this happens and details what is likely to happen in the public markets because of the transaction (including opportunities for arbitrage).

Acquisitions with shares

VIDEO 3:47 minutes
Mechanics of a share-based acquisition

Price behavior after announced acquisition

VIDEO 4:04 minutes
Stock Price Behavior After Announced Acquisition with Shares

Simple merger arbitrage with share acquisition

VIDEO 4:22 minutes
Showing how a merger arbitrage player might act if they were sure that a transaction would go through