Monday, 5 May 2014

Update on the Oi PT merger arbitrage

Today OiC ADR has finally climbed reducing the gap significatively. However PT also climbed a bit since my post. Anyway, a 16.6% gain (in Euros) more than offset the 4.4% loss (in Euro) generating a 12.2% gain before taxes and comissions in a week (a fair return to what seemed to me a very low risk arbitrage - as long as leverage was kept low).

Unfortunately I had no available money in USD so I never entered the deal but it is as they say: if you don't do it it doesn't count. My next update will come in an happier tone.

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