Cablevision Systems Corp. (NYSE: CVC) -- volatility elevated as arbitrage spread widens. CVC, a leading entertainment & communications company controlled by the Dolan family, is recently down $0.85 to $35.55. The Dolan family is in the process of taking CVC private at $36.25 a share. CVC has secured its board and its special committee approval; however CVC still needs to win the backing of a majority of its public shareholders. Dow Jones reported on 5/2/07, "our position going the whole way back for years on CVC is this: If the Dolans ever were to decide to part with that asset, we would certainly want to be on their list of people to talk to," said Time Warner (NYSE: TWX) Chief Executive Dick Parsons. CVC September option implied volatility of 29 is above its 26-week average of 18 according to Track Data, suggesting larger price risks.
Guitar Center, Inc. (NASDAQ: GTRC) -- volatility flat as arbitrage spread widens. GTRC is recently down $0.52 to $58.33. GTRC announced on 6/27/97 it would be acquired by Bain Capital for $63; the total transaction value is $2.1 billion. GTRC over all option implied volatility of 13 is near its 5-week average according to Track Data, suggesting flat risk.
Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
