ahm IS AT 755P IF YOU LONG IT ON SPREADBET A 350PP BET WILL TAKE 13212 MARGIN,WE ALL KNOW THAT IT WILL GET TO 800P THE GE BID PRICE SO YOUR RETURN WILL BE 15750 PROFIT WITHOUT ANY RISK.

glad you like this one guys.the two companys have no overlaps so the deal WILL get the goahead,only fly in ointment is someone may offer more!

most interesting,
but as someone not ready to chance spreadbetting, would i still make a few quid by going the conventional route? ie just buying some shares?

superrod,the beauty of spreadbetting is you only pay 5% for your shares.and any1 will tell you a 100% on your money is a good return over a couple of months.
zarif your email returned,hope that the other posts have answered your questions.

hijeff,
i appreciate that but if the market moves the wrong way losses accumulate on a pro rata basis?
5% on a couple of months would do me as im not into serious gambling ie spreadbetting

Another path into this one is Covered Warrants - there is one call (G142, I think) - trading at around 360p with delta of 0.8. There's (say) another 50p movement in AHM, so another 50p*.8=40p in the warrant which is 11% for little to no risk (compared to 7.5% in AHM) - not huge leverage, but better than nothing. Big caveat - haven't looked at the expiry date or the time decay rate yet, so this might be counted out because of that

Correction to those figures - AHM is 760p mid, G142 call warrant is trading at 283/303.

This gives potential 40p rise in AHM, or 5%, excluding dealing costs. At 0.8 delta, there is a potential 32p gain (to 335), or 10.5%, offer-offer. Assuming the same 20p spread on the warrant at close of the deal, the bid would be about 315 - giving an offer-bid gain of only 3.9%. Doesn't look particularly attractive after all. With a June 2004 expiry, and a time to clear the deal of perhaps 6-9 months, that looks a bit close for comfort as well.

Ah well, nice idea - back to the drawing board!

the prediction came true,any1 bother taking some?