SunEdison-Vivent, Staples-Office Depot Lead List Of Large M&A Spreads

According to the latest spreads by Sin Letter, there are currently some huge M&A arbitrage opportunities in the market. However, the bigger the spread, the bigger the risk, and a large spread is often an indication of market skepticism that the deal will ultimately go through.
 

The largest spread in the market today is the 208 percent spread in the price of Vivint Solar Inc VLSR, which had agreed to a buyout at $15.25 by Sunedison Inc SUNE that was expected to close by the end of March. Clearly the massive spread indicates that the market has its doubts about the deal’s completion.
 

Related Link: Analysts Aren't Pleased With SunEdison

The only other deal on the list originally expected to close as soon as the end of March is the acquisition of Cleco Corporation CNL by Macquarie Infrastricture and Real Assets and British Columbia Investment Management Corporation. With the spread for the deal currently sitting at 21.1 percent, the market doesn’t seem to have much faith in this deal as well.

In addition to the Vivint/Sunedison deal, Energy Transfer Equity LP ETE's potential buyout of Williams Companies Inc WMB, Staples, Inc. SPLS's potential buyout of Office Depot Inc ODP, Halliburton Company HAL's potential acquisition of Baker Hughes Incorporated BHI and Anthem Inc ANTM’s potential deal for CIGNA Corporation CI round out the top five largest M&A spreads in the market today.

Disclosure: the author is long Halliburton.