QIHU - Will This Horse Reach the Finish Line?

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

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<h2>The Roller-Coaster Ride</h2>My initial note on Qihoo was back in June 2015, titled "QIHU MBO - Fair Offer &amp; Attractive spreads" (<a href="https://www.smartkarma.com/insights/qihu-mbo-fair-offer-attractive-spreads" target="_blank">link</a>).That was before the 24 August 2015 crash. Following the crash, spreads on almost all ADRs going private widened substantially.It has indeed been a roller-coaster ride for arbitrageurs that got into Qihoo:<figure class="editor-figure"><figure class="editor-figure"><figure class="editor-figure"><img src="https://static-prod.smartkarma.com/images/media/000/004/369/original/Spread.png?1449040401" class="editor-image img-responsive" data-smartkarma-image-id="4369"></figure></figure>Qihoo traded as low as 42.21 (82.4% gross spread) before slowly climbing back up to the current spread of 10.1% as of 1 December 2015.
Qihoo closed 3% up last night…
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The Roller-Coaster RideMy initial note on Qihoo was back in June 2015, titled "QIHU MBO - Fair Offer &amp; Attractive spreads" (link).That was before the 24 August 2015 crash. Following the crash, spreads on almost all ADRs going private widened substantially.It has indeed been a roller-coaster ride for arbitrageurs that got into Qihoo:Qihoo traded as low as 42.21 (82.4% gross spread) before slowly climbing back up to the current spread of 10.1% as of 1 December 2015.
Qihoo closed 3% up last night…


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