AO Smith Corporation

AOS position long Paul Sonkin

Thesis

AO Smith is acquiring Smith Investment Company for stock, which presents an arbitrage opportunity. The deal involves receiving shares of AO Smith for shares of Smith, and the underlying businesses of Smith Investment Company are also being liquidated, creating additional value.

Did it work?

inconclusive confidence: low

Without specific price performance data or a clear timeline for the acquisition and liquidation processes, it's difficult to assess whether the thesis has played out. The success of the arbitrage opportunity hinges on the completion of the acquisition and the realization of value from the liquidation, which cannot be confirmed at this time.

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