$50.39 0.00 (0%)
10/15/2009 4:03 PM

Wyeth (WYE.DL)

CAPS Rating: No stars

The Company is engaged in the discovery, development, manufacture, distribution and sale of a diversified line of products in three primary businesses: Pharmaceuticals, Consumer Healthcare and Animal Health.

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1
Member Avatar ACMIP (99.63) Submitted: 5/3/2009 5:07:45 PM : Outperform Start Price: $42.42 WYE.DL Score: +0.89

Arbitrage position. Assuming the deal closes as expected over the next 6 months or so, this position should generate an IRR of 17-18% (an 8-9% absolute return), far higher than what I expect the S&P to generate over the same time period.

At over 60 billion I think Wyeth's market capitalization is simply too big for the arbitrage community to absorb, thus creating significant opportunity. Outperform.

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