European Event-Driven Analyst

Jesus Rodriguez Aguilar

Jesús is an Insight Provider (Event-driven) on the Smartkarma network, where he looks across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations. He has served as Economic and Business Advisor at the Spanish Congress in Madrid. Prior to that, he has worked in the City of London: as a Credit Analyst at Bloomberg; Event-driven associate at former boutique European Research; and doubled as Special Situations and Equity-linked VP (convertible bonds) at Merrill Lynch. Jesús has an MBA from the London Business School, a BA (Hons.) degree in Economics from the Complutense University in Madrid, and a BA (Hons.) in Law from U.N.E.D., also in Madrid.

Event-Driven

<ul>
<li>Capco and Shaftesbury are in advanced merger talks. <strong>PUSU deadline is 4 June</strong>. This is a defensive merger. Both companies have underperformed FTSE Nareit Equity REITS index. </li>
<li>The merged company is likely gain bargaining power in rent negotiations. The estimated savings range could amount to ~10%-15% of the combined operating cost base.</li>
<li>Norges and Capco together own c.51% of Shaftesbury. Recommendation is <strong>long 1 SHB LN / short 3.4885 CAPC LN</strong>. There is some interloper risk, in my view.</li>
</ul>


Capco and Shaftesbury are in advanced merger talks. PUSU deadline is 4 June. This is a defensive merger. Both companies have underperformed FTSE Nareit Equity REITS index. 
The merged company is likely gain bargaining power in rent negotiations. The estimated savings range could amount to ~10%-15% of the combined operating cost base.
Norges and Capco together own c.51% of Shaftesbury. Recommendation is long 1 SHB LN / short 3.4885 CAPC LN. There is some interloper risk, in my view.


Shaftesbury PLC

Shaftesbury/Capco: Defensive Merger