On several occasions I have discussed arbitrages that are behaving oddly, and the arbitrage created by United Technologies' (NYSE:UTX) proposed acquisition of Rockwell Collins (NYSE:COL) is yet another one.
Rockwell Collins is trading at only a 4.8% to the deal's "headline" value of $140 per share. Even apart from the other issues surrounding this transaction, this is surprisingly narrow for a deal that is not expected to close until Q3 2018.