Merger yield?
I’m trying to learn more about merger arbitrage and I saw some details about a merger yield but I can’t seem to find much information about it online.
I would really appreciate it if anybody can explain it to me or point me to a good resource that explains it and uses it in an example. Thanks!
You don’t mean accretion / dilution, do you? Never heard of merger yield.
I assume this is maybe just another way to say the spread on a deal, but admittedly have never heard it called that. If you don't know, the spread would be the difference between the deal price and where the stock currently trades. For example, if it's an all cash deal at $110 per share and shares currently trade at $100, the arb spread would be $10 or 10% (10/100).
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