This post is for anyone here who may (understandably) be a bit confused or even just intrigued by the posting in this thread over the last few days, particularly by the newcomers (Arrowhead, et al.).
It's my opinion that
@Arrowhead is what is known as an arbitrageur.
A basic run-down (randomly selected source) in the link below.
https://corporatefinanceinstitute.com/resources/knowledge/deals/merger-arbitrage/The others will be a mix of the same and the equivalent of "groupies" hoping to ride the arbitrageur's coat tails.
The arbitrageur will have a large pool of capital at their disposal (more than most here) and will be extremely thorough in their research.
They need to be objective and ruthless to execute their strategy.
In this instance, a cash offer from the acquirer (Pfizer), to purchase the shares of the target (Resapp) they'll buy up shares at the current price (below the T.O. offer price), use them to increase the yes vote and profit if the T.O. is successful by receiving the higher price for the shares they've accumulated.
The price difference is called the arbitrage (or risk) spread.
RAP gets a mention in the short video linked below.
Merger Arb Mondays (25 Jul) - DTAC/True, Ramsay Health, Link Admin, VNET, Alliance AviationThe arbitrageur doesn't need to love or hate RAP or Pfizer. They are here for the profit.
It's in their best interest to keep their finger on the pulse regarding the voting and this is one place to be in doing so.
If the T.O. fails, they stand to lose and will want to dump their shares prior to that happening and prior to the price falling any further.
If they do dump their shares, this will put downward pressure on the price.
Don't underestimate the lengths they'll go to to achieve their goal.
I don't have anything against them and admire their balls. In this case however, as a no voter, I'm on the other side of the fence and felt the need to help raise the awareness of others.
Good luck
@Arrowhead.
May the best players win.
