Merger Arb Plays

BofA put it's $4B+ offer on the table for beleagured mortgage lender Countrywide Financial.

Terms:
-.1822 shares of BofA (40.57) = 7.39 per share for CFC holders
-2Q2008 closing target according to BofA CEO
-Spread: 23.4% for a 3-5 month closing.

Bottom line:
-Faro outlook is positive for small portion of current cash position


FCC and shareholders approved the Bain/Thomas H. Lee buyout for Clear Channel Communications; pending DoJ's nod.

Terms:
-$39.20 cash per share
-Feb 2008 closing target
-Termination fee of $500m or 12% of equity commitment
-Spread: 21.7% for 1 month closing

Bottom line:
-Faro outlook is positive for small portion of current cash position