There is an underlying arbitrage opportunity in there but the...

There is an underlying arbitrage opportunity in there but the return (5c on 1.47 puchase price) suggests there might be more to it. Take in acq costs, fx hedging requirements and annualised return pre tax is 10-12%. Arbitrage funds normally demand a lot more than that to put capital on the table.

I feel they have the arbitrage play as the minimum return they would achieve but with strong expectation that there would be a competing bidder and/or their presence on the register forces Arrow to think a bit.

Just my views.