Good insight, as usual. So if I understand you correctly, you are not betting on the merger arbitrage spread - which reflects the likelihood of the deal falling through? (Whether this likelihood is correctly estimated is a different story.)
Thank you for your kind words. To clarify, my investment in Albertsons is based on my belief that the company is currently undervalued. But additionally, I see an opportunity to profit from the merger arbitrage.
Good insight, as usual. So if I understand you correctly, you are not betting on the merger arbitrage spread - which reflects the likelihood of the deal falling through? (Whether this likelihood is correctly estimated is a different story.)
Thank you for your kind words. To clarify, my investment in Albertsons is based on my belief that the company is currently undervalued. But additionally, I see an opportunity to profit from the merger arbitrage.