Go to the Globe and Mail homepage

Jump to main navigationJump to main content


Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

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

Subscribers Only

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.

Report Typo/Error

Follow us on Twitter: @GlobeInvestor

Next story