Long Capri: Why the Deal Might Just Work

A new long idea

Trade Idea: CPRI Long

Capri, ticker CPRI, is currently under bid to be acquired by Tapestry, ticker TPR, at $57.00/share; however, CPRI trades ~31% below that price at $39.50/share. This is because the Federal Trade Commission (FTC) is actively trying to block the acquisition, but I believe that the FTC is more likely to fail than succeed in its case to break the acquisition up.