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Premium: The Arbitrage in the Sale of a Paper Company

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An interesting opportunity arises in a sale of a paper company. Acquisitions happen regularly, but this one is intriguing because the company is being sold at a price much much lower than the current market price!

Typically, when a company is listed and is being acquired, the buyer will first buy from the promoters and pay the market price. Or above. And then, at whatever price the acquirer bought, he will have to place an open offer in the market for 26% of the company from other shareholders. These are SEBI requirements. So What's This Deal About? The company . . .

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