Takeover arbitrage in economics and finance

236 views Feb 16, 2024

Hello and welcome! Today, we're going to explore the intriguing realm of takeover arbitrage. But what exactly is it? In simple terms, takeover arbitrage refers to the practice of capitalizing on the price discrepancies that arise during a merger or acquisition. It involves purchasing shares of the target company, anticipating that the acquiring company will offer a higher price in the future. This strategy can be employed by individual investors, hedge funds, or specialized arbitrage firms.

#Economics