ANTM / CI Deal

[Lucavia123]

If ANTM decided to buy CI for $187.00 per share and CI is currently at $158.00 per share it seems simply buying and holding till the deal is announced will result in $29.00 per share profit.

Rumor is deal could be announced any day now.

[riverbabe]

If ANTM decided to buy CI for $187.00 per share and CI is currently at $158.00 per share it seems simply buying and holding till the deal is announced will result in $29.00 per share profit.

Rumor is deal could be announced any day now.

I like the way you think. I just put in a bid. CI is my ins. co.

[billyjoe]

Lucavia, It would seem that way but if I bought CI for $158 I'd get out real fast if it got anywhere near 187. I own AET. It tanked somewhat after the HUM buyout was announced. HUM spiked and since has dropped back to near the pre announcement price. Don't know if the deal will actually happen because of govt. regulations etc.

http://finance.yahoo.com/news/risk-reward-ratio-humana-aetna-200607817.html

------------------billy

[mimo_100]

Buy some cheap out of the money calls - if the deal does not go thru, you limit your losses.

[Louetta]

Buy some cheap out of the money calls - if the deal does not go thru, you limit your losses.

Bought some 170s of August 21. Paid $.57. Risk reward calculations are good.

[mimo_100]

Bought some 170s of August 21. Paid $.57. Risk reward calculations are good.

Nice buy Louetta - The news is out - let's see how the Aug 170 acts - methinks you may need a wheelbarrow

From Dow Jones

Under the deal's terms, Indianapolis-based Anthem agreed to pay $188 a share for Cigna, of Bloomfield, Conn., based on Anthem's closing price on May 28. Cigna shareholders will receive $103.40 in cash and 0.5152 Anthem shares for each share held. Including debt, the deal is valued at $54.2 billion.

[billyjoe]

So why is CI down pre-market to 151.99? Something doesn't add up. 152 vs. 188 in cash and stock. Maybe some are doubting the value of ANTM. I'm very tempted and am willing to wait for the reward.

-----------------billy

[Louetta]

Bought some 170s of August 21. Paid $.57. Risk reward calculations are good.

'Bout all I can do is hang on to them.

[billyjoe]

"Financial experts point to the uncertainty of antitrust approval as a reason CI shares are trading well below 188".

---------------billy

[Louetta]

"Financial experts point to the uncertainty of antitrust approval as a reason CI shares are trading well below 188".

---------------billy

But why are they trading for less than 24 hours ago. Is the uncertainty more today than yesterday?

[billyjoe]

But why are they trading for less than 24 hours ago. Is the uncertainty more today than yesterday?

Good point, Louetta. I'd call it irrational negativity. I bought today under 150 with these thoughts. If the deal is nixed, CI has been unjustly devalued and will return to pre-buyout values and I win. Or this scenario, Deal goes through. I get 103.40 in cash and .45 of a share of ANTM. ANTM would only have to be 107 to break even. Currently it's 151. A win/win situation.

--------------billy

[Louetta]

Bought some 170s of August 21. Paid $.57. Risk reward calculations are good.

Mercifully these expire Friday.

[riverbabe]

I have buried my head in the sand and am holding at 158.30.