As one of Canada's most bitterly contested acquisitions nears the finish line, a dozen hedge funds including Citadel and Millennium Management are heaving a sigh of relief and sitting on profit of more than C$216 million ($162 million) on paper after a nearly two-year roller coaster ride.
after Canada's competition bureau this week dropped plans to block the deal. While the Canadian government still has the final say, most analysts and competition lawyers expect the deal to clear the last hurdle and close by the Jan. 31 deadline.
Hedge funds that bet on mergers and acquisitions aim to make money by buying shares in a company that is the target of a takeover bid in the hope they will rise towards the offer price. The ride over the past two years wasn't one for the faint-hearted as the competition bureau battled to keep the transaction from going through, taking its case to Canada's antitrust tribunal and a Federal Court of Appeal.
Billionaire Israel Englander's Millennium, the hedge fund with the largest position in Shaw, would have made a C$44 million profit from its 7.59 million shares if it had held the number of shares it currently holds for the full two years, according to Reuters calculations.
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