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Presenting The Merger Arbs Getting Decimated By The News Corp-BSkyB Deal Collapse

Tyler Durden's picture


For everyone asking who will be broadly liquidating to compensate for the News Corp-BSKYB merger arb catastrophe, meeting margin calls, and overall trying to prevent a fund blow up, here is the list. The biggest recent accumulators: Odey, Nomura, State Street, Lloyds, Taconic, Perry and PPM. These are the funds, which per CapIq loaded up LSE:BSY shares in the last 1-2 quarters, almost certainly based on merger arb assumptions.


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Wed, 07/13/2011 - 09:35 | 1451321 ZeroPower
ZeroPower's picture

Any half-decent fund involved in that MA would have likely hedged anyway.

Wed, 07/13/2011 - 09:36 | 1451322 The Count
The Count's picture

I hope they all go broke. Good for nothing vultures.

Wed, 07/13/2011 - 09:44 | 1451353 takeaction
takeaction's picture

Tyler.....12 Minutes to Bernank talking....getting grilled by Ron Paul.  10AM EST

Wed, 07/13/2011 - 11:01 | 1451752 Master Chef
Master Chef's picture

Yes, the vultures are lining up to feast on NEWS PORC.

Wed, 07/13/2011 - 09:40 | 1451337 lizzy36
lizzy36's picture

Maybe the also own NFLX (after all what merger arb, wouldn't own some momo names ;)). Now breaking above $300.....BOOYAH. Although my personal target is $545.00 based on 2015 EPS of something and a P/E of over 200x. Because this time is different.


Wed, 07/13/2011 - 09:56 | 1451380 equity_momo
equity_momo's picture

Taking the conservative valuation then. The momos still think it can double to 600 and beyond.

Wed, 07/13/2011 - 10:08 | 1451430 ZeroPower
ZeroPower's picture

Youre implying momos think.

Wed, 07/13/2011 - 09:42 | 1451344 Flore
Flore's picture

don't worry.. it's other peoples money

Wed, 07/13/2011 - 09:43 | 1451348 props2009
Wed, 07/13/2011 - 09:57 | 1451381 Danks18
Danks18's picture

State Street runs index money, no arbs.  Regardless, they lose.

Wed, 07/13/2011 - 10:00 | 1451390 Rainman
Rainman's picture

OUCH.... I suspect this one's gonna leave a mark. File under " sure thing " disasters.

Wed, 07/13/2011 - 10:18 | 1451480 props2009
Wed, 07/13/2011 - 11:07 | 1451808 spanish inquisition
spanish inquisition's picture

Looks like CIA sop, looking to fast track a Pakistan-India war.

Wed, 07/13/2011 - 12:19 | 1452327 BS_Merchant
BS_Merchant's picture

Odey's 7th largest position is Barclays.





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