TERMIUM Plus^®

Record 1,  Textual support,  English

Record number: 1, Textual support number: 1 DEF

An investment strategy that involves simultaneously buying the stocks of two merging companies.  2, record 1, English, - merger%20arbitrage

Record number: 1, Textual support number: 1 CONT

The strategy will typically involve the purchase of a security of the company being acquired, along with a simultaneous short sale of a security of the acquiring company  3, record 1, English, - merger%20arbitrage

Record 1,  Textual support,  French

Record number: 1, Textual support number: 1 DEF

Stratégie de placement qui consiste à acheter au même moment les actions de deux entreprises qui s'apprêtent à fusionner.  4, record 1, French, - arbitrage%20de%20fusions

Record number: 1, Textual support number: 1 CONT

En règle générale, la stratégie comprend l'achat d'un titre de l'entreprise visée par l'acquisition accompagné de la vente à découvert simultanée d'un titre de l'entreprise qui fait l'acquisition.  5, record 1, French, - arbitrage%20de%20fusions

Record 1,  Textual support,  Spanish

Record 2,  Textual support,  English

Record number: 2, Textual support number: 1 CONT

Merger and Acquisition Arbitrage. The most common type of risk arbitrage is the price inequalities that is created when a merger or acquisition is announced. Typically when this happens, the acquiring company's stock price usually drops in case the deal doesn't go through, while the stock price of the company being acquired shoots up close to the offered price (usually at a significant premium to the current traded price). It is interesting to note (and the key to profiting from it) that while the stock price of the acquired company rises, it will never reach the full offered price because there is always a risk of the deal not happening. Therefore, we can take advantage of this by buying stock of the acquired company and as the deal becomes more likely, the stock will rise.  1, record 2, English, - merger%20and%20acquisition%20arbitrage

Record 2,  Textual support,  French

Record number: 2, Textual support number: 1 CONT

Arbitrage sur fusions et acquisitions. [...] cette stratégie consiste à investir dans des entreprises étant engagées dans un processus de fusion ou d'acquisition. La tactique classique consiste à acquérir les actions de la société qui va être rachetée tout en vendant à découvert celles de la société acquérante.  4, record 2, French, - arbitrage%20sur%20fusions%2Dacquisitions

Record 2,  Textual support,  Spanish