The Traderszone Network

Published in TZ Latest News 17 July, 2014 by The TZ Newswire Staff

Murdoch’s tenacity is the trade in Time Warner-Fox face-off

Many investors say the best trading strategy around a potential takeover of Time Warner Inc by Twenty-First Century Fox is to wager that media baron Rupert Murdoch will pay up to get what he wants. Time Warner said on Wednesday it had rebuffed Twenty-First Century Fox’s roughly $80 billion bid, or $85 per share, in recent weeks over valuation and concerns that the Murdoch family will have too much power. Hedge fund traders and options strategists said the traditional merger arbitrage trade – short Twenty-First Century Fox and buy Time Warner – played out when the news broke.