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.

QXM/XING merger

The merger arb on QXM is still ripe.  QXM filed a Form 13E-3 over the weekend in order to move the planned merger forward.  http://www.sec.gov/Archives/edgar/data/1386607/000095012310095272/0000950123-10-095272-index.htm  With XING priced over 1.80/sh at the time of this post, each QXM shareholder will receive over $4.2/sh in cash and XING stock if the deal goes through, which is still a big premium to current prices.  I'm voting my shares in favor of the deal.    I'm still waiting to consider shorting XING against my QXM long since the charts for both are still quite bullish given the recent bull raid in chinese mining stocks.

Shorter term merger arb

I usually don't post my short-term trades on here, but with tons of volume coming into the chinese mining stocks lately (CHGS, SHZ, CNAM, CPSL, XING, QXM), the latter 4 stocks are still early in their moves.  With the bigger move up in XING, being at $1.85/sh as I write this, the buyout price for its subsidiary QXM, which the parent owns most of, is now $4.3/sh.  Currently priced on the market at 3.6, this is a steep discount for a stock whose deal is likely to go through given that the parent, which owns most of QXM, wants the deal to go through.  I'm long a lot of QXM from the 3.50s.  I expect XING could move a lot higher in the coming days, as well.