econwizard: UVN Arbitrage Possibility

About Me

Location: Massachusetts, United States

My "I" is constantly changing (perhaps this is merely AD/HD): overdetermined nexus of cultural forces emanating from several continents: skeptical of all Truths and seeker of the truth: iconoclast by enculturation, brain chemistry, and, perhaps, choice: perpetually perplexed, particularly about why we exist/ as the manifestation of overdetermined forces whose existence (and nature) is not as solid (or simplistic) as we would like.

Tuesday, June 27, 2006

UVN Arbitrage Possibility

Check out the buy out deal ($36.25 in cash) and the current price. I bought in at 33.95. The private equity firms who have combined to make this offer may actually believe they can get a quick payoff from the $150 million "get lost" fee that UVN must pay should Grupo Televisa come back with a higher offer (say, $38-40 per share, which is closer to what the UVN board wanted). After all, UVN is a lot more valuable to Televisa than it is to these investors. We'll see. I'll buy more when the price drops below 33.80.