AGI Risk Arbitrage Advice
Kingfisher and ASDA
Buy Both?
Sell Both?
Sell Kingfisher & Buy ASDA?
Buy Kingfisher & Sell ASDA?
Do Nothing?
Other Possibilities
Risk arbitrage is an extremely
high risk investment strategy.
AGI only assumes responsibility
for advice given to recognised clients of the firm.
Investment Opportunity Possible Results
| Buy Kingfisher and buy ASDA | If the market likes the deal, this could be a winning strategy as both companies' shares could rise. |
| Sell Kingfisher and sell ASDA | If the market does not like the deal, this could be a winning strategy as both companies have put a price on themselves and could attract hostile bids at above current market prices. |
| Sell Kingfisher and buy ASDA | If the market thinks the deal is bad for Kingfisher and good for ASDA, then this could be a winner. |
| Buy Kingfisher and sell ASDA | If the market thinks the deal is good for Kingfisher and bad for ASDA, then this could be a winner. |
| Do nothing | If one does not own shares in either company and has an obligation to invest risk capital in equity deals, then this is a risky strategy. |
| Other possibilities | Amongst other possibilities, buy or sell other large UK retailers. |