Manu stock acquisition play
I believe I’ve figured out a relatively risk free way to make money off MANU. Manchester United is going to either be acquired or partially bought out.
As of now, reports are there will be a partial buyout by sir Jim Ratcliffe. This would cause the share price to tank to pre-acquisition levels around the $13 range (at about $18 now). This is not set in stone yet, hence the lack of. a large price crash. Sheikh Jassim had previously bid 5 billion. There is a solid chance he will raise his bid to acquire the whole company. Jassim had pledged a combined total of 9 billion to invest the different in the club itself. This shows he has the money to raise his offer, and a strong interest in buying the club.
So there’s two outcomes:
- Acquisition raising the stock to $30 plus
- Partial acquisition tanking the stock to around $13
Yes this bidding war has gone on for months. However this is the 11th hour and the final bid is estimated to be selected next week.
Personally, I think it could go either way. My strategy is to profit off the volatility with an OTM put hedge. So I’ve invested 80% in MANU shares and 20% in OTM $14 puts. If the stock goes to $30 I make money, if it goes to $13 I make money. The only risk is if the stock doesn’t make a large move in either direction before my puts decay. However, I am very confident after following this situation for months that we are nearing a final outcome: the acceptance of one of the bids.