Suppose an announced merger transaction has not yet closed, but is still widely expected to close, by market participants. The original deal premium was 40%. The sector that the companies operate in has seen increased positive interest from the capital markets, and has rallied over 20% since the deal announcement. Describe the potential circumstances in which this deal could break and the clean price could be higher than the original break price.

Answer rating: 100% (QA)

Deal Break with Higher Clean Price Possible Scenarios Even when a merger is expected to closecircums... View the full answer