NOTE: SHAW announced it is being acquired today.
We are lookin to close the SHAW 27/29 call spread for a NET DEBIT $2.00 today.
Hopefully, you can split the BID/ASK and close for $2.00 NET DEBIT, but
ultimately we have to close the position
Tripp Levy PLLC, a leading national securities law firm, announces
that it has been retained to represent Shaw Group shareholders in
connection with the acquisition of the company. The Shaw Group Inc.
(SHAW) today announced it has signed a definitive merger agreement with
CB&I (CBI) under which CB&I will acquire Shaw in a cash and stock
transaction valued at approximately $3 billion.
Under the terms of the agreement, CB&I will acquire Shaw for $46.00
per share in cash and stock. Shawâ€™s shareholders will receive $41.00 in
cash and $5.00 in CB&I equity (0.12883 shares based on an agreed upon
recent average stock price of $38.81 per share) for each share of Shaw
stock at closing.
There is an investigation concerning whether the board of Shaw
obtained the highest price possible for shareholders while not
extracting personal benefits for themselves.
Unless you feel the deal will not go through there is little
holding the position and hoping that the deal does not go
In addition, you face a risk of some individuals calling their
early and you don't need to deal with that possibility.
In addition, the SHAW put spread is still open and because of the
buyout interest, the put spread will not be filled,
so you can CANCEL the
shaw put spead now.