Friday, May 23, 2008

Now Blockbuster/Circuit City Merger Arbs Swinging The Other Way


I have been wrong before, you know (don't act all surprised). Earlier this week both here and on CE Pro I insinuated that the spread between both Circuit City and Blockbuster's share prices indicated that investors lacked faith that a deal was forthcoming.

Today the spread inverted, with CC gaining ground and BBI declining. Is something in the offing, or is it just wishful thinking anticipation by investors that a slow day in the market will be made more exciting by an announcement after the bell?

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