Vocus' (VOC) #takeover bid for Amcom (AMM) should be a popular trade with hedge funds with the general rule of shorting the bidder and going long on the...
Vocus' (VOC) #takeover bid for Amcom (AMM) should be a popular trade with hedge funds with the general rule of shorting the bidder and going long on the target. #Vocus stock is down 0.8% at $5.27 while #Amcom is up 9% at $2.03. There are reasons to think the gap between the two stocks will widen in coming days/weeks. Firstly, this is an all scrip bid. Further, Vocus has nearly doubled in value over past year when Amcom is down 1%. Vocus will also need to ensure deal is sweet enough to win over Amcom shareholders given they will end up with Vocus stock and not cash.
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I am with Australia's leading small caps investor relations and media relations firm, Media & Capital Partners. I worked as a small caps analyst and journalist prior to MC Partners. Views are my own and should not be regarded as advice or...
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