There's a 67 % premium on
the AGI deal, so this represents a higher level of price risk if the deal failed — calculating underlying instrinsic value will be an important reference point also.
This is a more realistic snapshot of a true
AGI deal return, and still looks v attractive.
Not exact matches
In principle an
AGI can
deal with almost any situation you throw at it, without being specifically prepared.
With
AGI Therapeutics (
AGI: ID / LN), however, I essentially faced no FX risk on the
deal in the end.
AGI's been a pretty good example for my v detailed walk - through of all aspects of a Risk Arb
deal (if you're still reading, I hope your patience has been rewarded?!).
Gross Returns (for well advanced
deals) are usually much lower than we see with
AGI, and can often seem downright unattractive vs. other investment choices.
So, is this a bad
deal for
AGI shareholders?