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"I don't think it's worth holding the JEF shares over the next four months for the small arbitrage of 1.04 less the Crimson Wine Group (BV of 0.80). Maybe there is 0.10 or 0.20 in there."

Agree it's a thin arb. I did it this morning for two reasons:

1) I think the deal is a lock; if anything, the ratio would have to be increased on JEF to push it through (don't think that is going to happen). What is the alternative for both shareholders of JEF / LUK - vote down a deal that both managements support, in companies that are essentially bets on management??? I don't see it.

2) Since my LUK shares had a basis slightly higher than the current price, I had losses which aren't wash sales when swapped back to JEF so it's a way to improve tax efficiency.

It's not compelling though as a straight arb given the tiny spread, I agree.

Ben
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