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Here’s why Link is an arbitrageur’s dream

It is a dangerous game playing the arbitrage between market prices and takeover bids, as shown by the carnage surrounding Link Administration and its bidder, Dye & Durham.

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The 68 per cent collapse in the share price of Canadian cloud computing company Dye & Durham and the fall in the price of its takeover target, Link Administration, sets up a fascinating end game for Ares Capital.

It also sets up a potentially profitable opportunity for the takeover arbitrage players seeking to profit from the market’s loss of faith in Link being taken over by D&D.

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Tony Boyd is the former Chanticleer columnist. He has more than 35 years' experience as a finance journalist. Connect with Tony on Twitter. Email Tony at tony.boyd@afr.com

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    Original URL: https://www.afr.com/chanticleer/link-an-arbitrageur-s-dream-20220511-p5akef