Dell Buyout - Buy shares now?
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Thread created 02-05-2013 by WoundedCheese
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http://en.wikipedia.org/wiki/Risk_arbitrage
A bit of reading material I found interesting in the past. That 2.7% is what you get for taking the risk the deal might not go through for whatever...
Dell Buyout - Buy shares now?
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Thread created 02-05-2013 by WoundedCheese
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Is it not a tender offer at this point? Same thing I got last week on SVU. The benefit of participation is profit lock on my outstanding shares, the risk is the stock price goes significantly higher...
Dell Buyout - Buy shares now?
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Thread created 02-05-2013 by WoundedCheese
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^ This.
Dell Buyout - Buy shares now?
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Thread created 02-05-2013 by WoundedCheese
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6 Replies
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Also, dell is waiting 45 days to solicit offers from other interested parties. That means you will have to hold your money in the stock for 45 days atleast, and likely longer subject to government...
Dell Buyout - Buy shares now?
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Thread created 02-05-2013 by WoundedCheese
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I'll take a look now, thanks. Dell might also get blocked by regulatory agencies now as well. I thought this was closer to a done deal. I thought wrong, haha.
Dell Buyout - Buy shares now?
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Thread created 02-05-2013 by WoundedCheese
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The Dell buyout is going to buyback all shares of dell for $13.65. The shares are trading at $13.38. Why aren't people buying $10,000 and holding until the buyout happens? That is a guaranteed 2.7%...
Dell Buyout - Buy shares now?
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Thread created 02-05-2013 by WoundedCheese
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Because the buyout is not guaranteed to happen. The shareholders could say nay and the deal falls through and now your stuck with an over paid under performing dell stock.
