News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Hedge Funds

Why hedge funds are avoiding LSE/Deutsche Börse deal

After being burnt by AbbVie/Shire, political risk is a new no-no for merger arbitrage funds

LSE CEO Xavier Rolet and Deutsche Borse CEO Carsten Kengeter
LSE CEO Xavier Rolet and Deutsche Borse CEO Carsten Kengeter Photo: Getty Images/FN montage

For merger arbitrage hedge funds, the proposed merger between Deutsche Börse and the London Stock Exchange has everything they want. Unfortunately, it has also something they don't want.

The proposed tie-up has two large, established companies, lots of liquidity, and a genuine will to get this deal done - shown by the fact that both Deutsche Börse and the LSE have retained most of the top investment banks as advisers.

WSJ Logo