IMMU Potential ~0.6% in 3 weeks time (~10% APY)

IMMU currently trades at about 87.43-87.50. The deal calls for 88$ in cash and $GILD’s tender offer expires 10/21. 2 weeks (or less) after this offer cash should be distributed to anyone tendering shares. This means you should get about a 0.6% return in about 3 weeks if you went into it now. You also have the option to simply sell the shares as the spread closes.

There was plenty of liquidity to buy thousands of shares yesterday in the 87.4xs although I suspect that should close up in the ensuing days. The HSR (Hart Scott Rodino) anti-trust review window expired 10/13 11:59 PM. This means any regulatory risk is now gone (not there was much of any in the first place). $GILD has already secured the cash needed for the deal with a debt offering + cash. This means the financial risk is gone. The only remaining risks are 1) not enough shares tendered 2) some global calamity of epic proportions.

I personally am putting most of my free cash into this. If you wish to do something similar, try to find a broker that has good corporate action support so you can easily tender (Fidelity, TD, Schwab, all the main ones should make this easy). I am not sure about Robinhood and some of the newer ones although I am sure they need this kind of support due to financial regulations. You can simply buy the shares and then either 1) sell as the spread closes towards 88 or 2) just hold and tender on 10/21 if not satisfied by the price.

Disclaimer: Everything on this site references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.