Shareholders approve Tesla Solarcity acquisition
I found a cool risk arbitrage play here that others may find interesting.When the deal was announced, it mentioned that SCTY shares were to be converted into TSLA shares at a rate of 0.11 TSLA/SCTY. Yet SCTY shares were priced at close to 0.097 TSLA/SCTY.This means there was roughly a 12% profit to be made by buying SCTY shares and shorting the equivalent value of TSLA shares, assuming the deal goes through.I ended up only buying SCTY shares, effectively buying TSLA shares at $182 (when it was at $203). Now TSLA is at $189 so I only made about 4% but had I shorted TSLA at the same time I would have made the full 12%.All over the course of a just a few months, not bad. It seemed pretty obvious to me that the deal would go through - though hindsight is 20-20.It's also interesting to consider that now that SCTY has little downside risk and 20% of SCTY shares are held short, if there will be a short squeeze. Seems like SCTY shares are locked at exactly 0.11 * TSLA so I guess I don't see this happening.Fun, profitable learning experience. :)