Friday, December 31, 2010

QXM/XING merger arb

With the surge in Chinese metal companies lately, the merger arb between parent XING and subsidiary QXM, which the parent intends to buy the remainder of, has blown wide open.  With XING trading at $3, the value of a share of QXM would be $6.70 if the deal goes through.

I'm long QXM, short XING.