Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Quaker Oats dropped further to $88.95. The deal between Pepsi and Quaker Oats was a stock exchange of 2.3 PEP shares for each OAT share. Further, certain limits have been set where if the OAT share falls below $92, the deal can be called off (based on rough memory...).

With the first factor, based on the price as of the second I am writing this, where OAT is 89.85, and PEP is $43.74, there seems to be a very wide spread which would seem to make some Risk Arbitrage an attractive option right now. With the second factor, you could argue that $92 is a floor for what OAT shares should sell for (meaning the present price is a bargain), or you could argue that the deal is in some trouble.

But anyway, I am suddenly very curious as to how the talks with the FTC are going. Does anyone know how the talks are going with them? I would be especially interested in finding out if any hearings would be open door, and how I could get information on them. Admittedly the few news releases made by Pepsico are sparce, perhaps out of date, and not very useful.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.