Aon-Willis merger arb spread in focus as it breaches 10%
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Aon-Willis merger arb spread in focus as it breaches 10%

Merger arb spread.jpg

Last week, Willis's stock closed 3.1% below Aon's. Using the deal price of 1.08 Aon shares per Willis share, the current prices reflect a 10.3% discount on Willis relative to the price implied by the offer, a figure often referred to as the merger arbitrage spread (arb spread).

What this means is if you buy Willis stock and short Aon at these prices, should the deal close you will make 10.3%

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