Saturday, December 30, 2006

Merck/Sirna Merger Arb results in 8.4% APR

As you may previously recall, I entered into a merger arbitrage trade position for my short-term mock portfolio with Merck (MRK) and Sirna Therapeutics. Here is the link to the original post... MergerArb#1.

On Friday December 29th, 2006 Merck & Co., Inc. announced that it has successfully completed the acquisition of Sirna Therapeutics, Inc. in a cash transaction which closed in the fourth quarter of 2006. This date was 3 days later than my projected bull case.

Trade results in a profit after commissions of $125 or 8.4% APR.

Disclosure: This strategy is highlighted for entertainment purposes for my mock short-term portfolio.

2 comments:

admin said...

If you want to track Merger Arbitrage opportunities, go to http://www.mergerinvesting.com/pendingmergers.php

QUALITY STOCKS UNDER 4 DOLLARS said...

Not a bad trade.