OK Sotirib.Let's say you have 100,000 SXY... and sell them at...

OK Sotirib.

Let's say you have 100,000 SXY... and sell them at 40c.
You then purchase $40k worth of STU... this will give you about 42,553 STU shares (at 94c) or 43,478 STU shares (at 92c) Take off your buying/selling costs if you wish... but you get the general idea!

Now you wait for 2.5 SXY shares for each of your STU shares... assuming the t/over is successful which many agree it most probably will be.

At the end of the day, in theory, you will end up with an additional 5,000 to 10,000 SXY shares at no additional cost! The exact number will depend on your sell price for SXY and your buy price for STU.... but as indicated on this thread, at times the arbitrage (relative difference) has been quite significant.

Put in your own numbers and, of course, do consider your tax position (i.e. you may trigger a cgt event by selling your SXY shares etc).

Hope this helps.