Thursday, August 30, 2012

"Reverse" Merger Arb Idea: Focus Media ($FMCN)

Focus Media is a Chinese company that some people are "worried about". Trades at 24 and a group of PE firms have agreed to pay 27... subject to due diligence.

If they cancel the deal after due diligence, the stock would probably crater. And the upside (downside to short) risk is only $3.

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