Edit Metric

Company
Value
Source
Source URL
Notes
		Cancel

Edit | History

Details

Company:
Value :
Source:
Source URL:
Notes:

Feedback

Get involved

FAQ

Companies | Concepts | Contributors

XM Satellite Radio Holdings (XMSR)

Stock (Broadcasting - Radio Industry, Media & Entertainment Industry, Telecommunications Industry)

< Return to Bulls page

Arbitrage On Merger With Sirius

If the merger of Sirius and XM passes, each share of XM will receive 4.6 shares of Sirius. Currently XM is trading at a discount to the merger share ratio. Stifel analyst Kit Spring issued a note Tuesday in which he highlighted the arbitrage spread between Sirius (SIRI) and XM (XMSR) as being “abnormally high”. The arbitrage spread is represented by the delta between the price of Sirius and XM in relation to the 4.6 shares of Sirius that will be received for each share of XM upon a merger approval. With Sirius closing at $2.00 Tuesday, the implied price for XM is $9.20. XM closed at $7.57. Thus, if the merger were approved Tuesday, a share of XM would bring a premium of $1.63 over current prices.

Retrieved from "http://www.wikinvest.com/stock/XM_Satellite_Radio_Holdings_(XMSR)/Bulls/Arbitrage_On_Merger_With_Sirius"

The Shelf

Worried about pump and dump?

We review changes
for stock spam

» read more

Want to make Wikinvest better?

We need your help,
contribute today

» learn how

Do you write software?

We are recruiting
the best engineers

» view jobs

Like Wikinvest?

Spread the word —
Tell your friends!

» spread the word

Wikinvest © 2006, 2007, 2008. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.