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Shares in professional networking/dating/narcissism website LinkedIn (LNKDN) are called to open around 40% higher at the US open after confirmation it has welcomed a mammoth takeover approach from Microsoft (MSFT) constituting a nigh on 50% premium over Friday’s share price close. Shares in Microsoft were understandably suspended from trading in the lead-up to this bit of news, given that the traditional reaction to such an announcement often involves a shareholder exodus from the predator. With this deal lightening Microsoft’s coffers to the tune of $26bn, make that an exodus of biblical proportions. However it’s perhaps the attractiveness of this deal to the merger arbitrage hedge funds that’s set to have the biggest impact on both companies. With that massive 50% premium, this could be the pairs trade of the decade.
(Reid Hoffman and Jeff Weiner both fully support this transaction apparently. Just look at their little faces.)
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