Thursday, November 28, 2013

Arbitrage Opportunity - Odd lot tender offer

Bridgepoint Education Inc


If you want to make little more than a hundred dollars on a ~$1800 investment almost risk free, read further.

The opportunity is to buy 99 shares of  Bridgepoint Education Inc(NYSE: BPI), and ask your broker to tender all the shares in management share buyback @ $19.5/share. Currently the shares are trading at @ $18.40. so, you pocket the difference between (19.5 - 18.4)*99, less brokerage costs. This needs to be done before Dec 21st. There is a special provision for the shareholders who hold less than 100 shares. Here is the SEC filing of this tender offer which includes the odd lot provisions.


Feel free to send this to anyone who would like to benefit from this idea. Let me know if you have any questions.