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Inside the Market

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Contra Guys: A classic case of merger arbitrage Add to ...

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There are many different ways to make money in the stock market and one “game” that we sometimes like to play is merger arbitrage. This is when one company has made a bid to take over another with the prey trading well below the price that the suitor has offered. We try to capture the differential. In October, Benj purchased Rite Aid Corp., a drugstore chain in the United States at $7.26 (U.S.), about a year after Walgreens Boots Alliance Inc. made a bid of $9.

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