Thursday, January 06, 2011

Atheros Communications: A Special Situation

Qualcomm (QCOM) announced that it will acquire Atheros Communications (ATHR) for $45/share in cash, expected to close in the first half of 2011.  This presents one of the most straightforward merger arbitrage opportunities I've seen in a while.  Details immediately below. 

Full disclosure:  Long ATHR with covered calls and cash-covered short puts.  No position in QCOM.