Apollo is slated to buy Tech Data for $145 in cash - stock today trades for 100 - this is pretty unheard for a cash deal by a rock solid PE firm
Ackman today was on CNBC saying maybe Apollo and Blackstone will be out of business - seems like hyperbole to me - end of day they have billions (tens of billions) in dry powder to keep buying - maybe some of their prior IRR's will be bad but that's not really my concern, that's something for their LP's to worry about.
End of day - pretty unheard of to see a cash arb deal with no deal risk trading for 30% spread.
The main risk is does Apollo try to renegotiate or walk away - possible they try to negotitate a slight price break, but even then the return would still be superb if they cut the price 10% or so. Also, don't see why they damage their brand over a fairly small deal that ultimately isn't that meaningful to the firm.
I do not hold a position with the issuer such as employment, directorship, or consultancy. I and/or others I advise hold a material investment in the issuer's securities.
Are you sure you want to close this position TECH DATA CORP?
By closing position, I’m notifying VIC Members that at today’s market price, I no longer am recommending this position.
Flag TECH DATA CORP for Removal
Are you sure you want to Flag this idea TECH DATA CORP for removal?
Flagging an idea indicates that the idea does not meet the standards of the club and you believe it should be removed from the site. Once a threshold has been reached the idea will be removed.
You Cannot Submit Message ... Yet
You currently do not have message posting privilages, there are
1 way you can get the privilage.
You can apply for full membership by submitting an investment idea of your own. Or if you are in reactivation status, you need to reactivate your full membership.