|
Case
| HBS Case Collection
|
1998
Farallon Capital Management: Risk Arbitrage (C)
by
Andre F. Perold and Robert Howard
|
Abstract
Farallon Capital Management, an investment firm that specializes in risk arbitrage, has taken significant long and short positions in MCI Communications and British Telecommunications, respectively, in the belief that the proposed merger of these firms will be successfully completed. Raises the issues facing Farallon as positive and negative events relating to the merger unfold. Provides a rich institutional setting for understanding merger arbitrage and its function in capital markets.
Keywords: Capital Markets;
Equity;
Mergers and Acquisitions;
Financial Institutions;
Risk Management;
Investment Funds;
Financial Services Industry;