Just a quick note on the merger arb trade I suggested a few days ago in this post... (
http://www.stockhouse.com/Blogs/ViewDetailedPost.aspx?p=111233).
As most folks on SH know, Duluth (T.DM) made an offer to take Franconia (T.FRA) as a land consolidation in the Duluth Complex. This is a very good deal for Duluth. Anyhow, I suggested buying FRA at $.81 (I managed to take a full position at $.80) and holding until the take out at $.90. Now, I noticed that
people might not get all cash in this deal and may receive one of cash, cash+shares, or all shares. If you don't want to get stuck with odd lots of DM shares you might consider selling before the take out occurs. Depending on the conditions, I will probably sell my shares before the take out to guarantee that I get all cash. Sure there's a brokerage charge, but that's small compared to a $.08-$.09 per share profit. Anyhow, good luck. Here is a link to the take over terms...
http://www.theglobeandmail.com/globe-investor/news-sources/?date=20101220&archive=ccnm&slug=201012200661880001
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Disclaimer
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I own a full position in Franconia (T.FRA) but not Duluth. Do your own DD from reliable third party sources. Don't trust my words as if they were Gospel... while I like to think I am an honest Cephalopod, I am not a fiduciary (relative to you the dear reader) and thus you should not act solely on my advice.
A.
