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Twitter Frees Up Billions for Arbitrage Traders Seeking Next Win

  • Microsoft-Activision, Broadcom-VMware in focus, survey shows
  • Deals with widest spreads offer biggest potential upside

Billions of dollars in arbitrage capital is looking for a new home after Elon Musk finally closed his $44 billion deal to buy Twitter Inc.

Merger arbitrage traders, who make money betting on the outcome of dealmaking among public companies, are now setting their sights on transactions involving Activision Blizzard Inc., VMware Inc. and Albertsons Cos. after enduring a months-long roller-coaster ride by Twitter’s stock, according to a Bloomberg News survey of 10 event-driven and risk-arbitrage trading desks this week.