Merger Arbitrage Strategy

Merger Arbitrage Strategy MCP Connector for Claude

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A deterministic risk arbitrage engine for evaluating merger deals and generating buy/short signals.

3 tools Official Updated Oct 1, 2026 Official Vinkius Partner

This MCP server provides a deterministic engine for executing merger arbitrage (risk arbitrage) strategies. It allows AI agents to evaluate the profitability and risk of acquisition deals by calculating arbitrage spreads, annualized returns, and downside risks. Users can utilize analyze_deal_opportunity to determine if a deal meets specific investment criteria, calculate_hedge_ratio to find the correct short position for stock-for-stock swaps, and evaluate_downside_risk to estimate potential losses if a merger fails.

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3 tools expose this connector's capabilities to your AI agent.

analyze_deal_opportunity

Determines if a specific merger deal meets the necessary investment criteria and calculates core arbitrage metrics

evaluate_downside_risk

Estimates the potential loss if the merger fails

calculate_hedge_ratio

Calculates the specific ratio required to neutralize market exposure in stock-for-stock transactions

See how to talk to your AI agent using Merger Arbitrage Strategy.

Analyze this merger: Target price is $50, deal value is $55, it is a cash deal, expected to close in 30 days, deal size is $2B, and there is no regulatory risk.

The signal is BUY_TARGET with a 10% spread and an annualized return of 121.67%.

Calculate the hedge ratio for a stock swap where the swap ratio is 0.5.

The hedge ratio is 0.5.

What is the downside risk if the target price is $50 and the pre-deal price was $40?

The expected loss is 20% with an estimated floor price of $40.

Merger arbitrage is a strategy that exploits the price difference between a target company's current price and the price offered by an acquirer in a merger deal.

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