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The Big Winners in Musk’s Twitter Deal? Merger Arbitrage Traders

  • ‘Great day’ for investors betting on Musk taking over company
  • Deal spread reaches narrowest since April purchase agreement
Bloomberg business news
Elon Musk Is Back at the Twitter Deal Table
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Elon Musk’s decision to revive his $44 billion buyout of Twitter Inc. is shockingly good news for investors including billionaire Carl Icahn who continued to bet on the outcome of the deal through months of uncertainty.

After Musk and Twitter agreed to proceed with the deal at the original offer price at $54.20 a share on Tuesday, the social media company’s stock rallied as much as 23%, pushing the spread to its narrowest level since the pair entered a merger pact back in April. Shares of the company slipped 0.4% in premarket trading on Wednesday.