At the end of September I wrote about Fortune Industries (PINK:FDVF) as a simple low-risk merger that should be completed at the end of November or the beginning of December. The deal was completed even a bit faster than expected, and today after the market close the cash hit my account. I bought the stock at $0.5572/share in September and received $0.586/share today which represents a return of 5.2% (more than 40% annualized). This is the kind of merger arbitrage I wish there were more of: simple, low-risk, fast and with a nice spread. Perhaps it could even be that a deal like this is better than for example Kahala or Glacier Water.
Author no longer has a position in Fortune Industries