Regulators Sue to Stop ICE-Black Knight Deal. Traders Don’t Care
- ICE has “reasonable good chance” winning in court: Jefferies
- Spread implies market pricing in roughly 40% deal odds: survey
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The Federal Trade Commission is suing to block Intercontinental Exchange Inc’s $13 billion acquisition of Black Knight Inc., but some traders are still betting that the companies will get the deal done.
Black Knight shares dropped 2.6% to $59.42 on Thursday, remaining below ICE’s $75 offer but higher than its estimated standalone value, which is around $50, according to a Bloomberg News survey of merger arbitrage specialists and analysts. That means, the market is still pricing in a roughly 40% chance that the troubled merger, which is now expected to head to the court, will succeed.