Merger Arbitrage

Noonday's merger arbitrage effort is focused on corporate takeovers. Investments are made to capture the rate of return between the current and projected values of securities of companies involved in a merger or acquisition. To employ this strategy, we typically establish a position (usually a purchase of common stock) in an announced takeover candidate and, if the proposed merger or acquisition is structured as a share-for-share transaction, take a short position in the company making the acquisition. Our arbitrage positions may be U.S., international or cross-border.