Hedge funds that earn returns speculating on precarious acquisitions were handed a gift this week when Microsoft Corp agreed to buy"Call of Duty" maker Activision Blizzard for $68.7 billion in cash.
This infers a 57per cent chance of the deal closing, based on Activision's closing share price of $65.39 before the deal was announced. For some investors, Aon's scuttled $30 billion acquisition of Willis Towers Watson as the U.S. Justice Department sued to block the deal hurt returns.
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