“(John Dorfman, chairman of Thunderstorm Capital in Boston, is a columnist for Bloomberg News. The opinions expressed are his own. His firm or clients may own or trade securities discussed in this column.)
Picking takeover candidates for fun and profit is a perennial investment sport.
How can it not be? When one company takes over another, it typically pays a 20 percent to 70 percent premium over the target’s prevailing stock price. Takeovers can enrich investors instantly.
According to Bloomberg’s database, there were 2,061 deals announced in the first quarter. The dollar volume of $269 billion was more than in any of the previous nine quarters.
In the second quarter so far, the average takeover premium has been unusually rich — 61 percent, the highest in 12 years.”
If you enjoy the content at iBankCoin, please follow us on Twitter
