According to the latest spreads by Sin Letter, there are currently some huge M&A arbitrage opportunities in the market. However, the bigger the spread, the bigger the risk, and a large spread is often an indication of market skepticism that the deal will ultimately go through.
The largest spread in the market today is the 208 percent spread in the price of Vivint Solar Inc (NYSE:VLSR), which had agreed to a buyout at $15.25 by Sunedison Inc SUNE 6.25% that was expected to close by the end of March.
Clearly the massive spread indicates that the market has its doubts about the deal’s completion.
The only other deal on the list originally expected to close as soon as the end of March is…
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