Market Overview

The 10 Least Likely M&A Deals To Go Through

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The 10 Least Likely M&A Deals To Go Through
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According to the latest spreads by Sin Letter, there are currently some huge M&A arbitrage opportunities in the market. However, the bigger the spread, the bigger the risk – and a large spread is often an indication of market skepticism that the deal will ultimately go through.

The largest spread in the market Monday is the 167 percent spread in the price of Williams Companies Inc (NYSE: WMB), which agreed to a buyout at $43.50 by Energy Transfer Equity LP (NYSE: ETE) in a deal expected to close by the end of June.

Related Link: Needham: Yahoo Bidding Delay Means There Could Be More Buyers At Table

The massive spread indicates that the market has its doubts about the deal’s completion. So far in 2016, there have been 58 M&A deals closed, and just three that have been terminated.

However, one of the three deals that fell through recently was the massive potential merger between Pfizer Inc. (NYSE: PFE) and Allergan plc Ordinary Shares (NYSE: AGN), which would have been the largest pharmaceutical merger in history.

In addition to the Williams-Energy Transfer deal, Halliburton Company (NYSE: HAL)'s potential acquisition of Baker Hughes Incorporated (NYSE: BHI), Anthem Inc (NYSE: ANTM)’s potential deal for CIGNA Corporation (NYSE: CI), Aetna Inc (NYSE: AET)’s potential buyout of Humana Inc (NYSE: HUM) and Staples, Inc. (NASDAQ: SPLS)'s potential buyout of Office Depot Inc (NASDAQ: ODP) round out the top five largest M&A spreads in the market.

Disclosure: The author is long HAL.

Image Credit: Public Domain

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