SolarCity (SCTY)/Tesla (TSLA) Merger Spread Ticks Up Despite Musk Tout

November 2, 2016 3:52 PM EDT

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Tesla (NASDAQ: TSLA) CEO Elon Musk laid out his case for a merger with SolarCity (NASDAQ: SCTY) to investors last night but so far the Street is have the opposite reaction.

The spread on the deal has widened 2% today to 12.1%. Yesterday's closing spread was 11.8%. On 10/28 the closing spread was 7.1%, suggesting growing skepticism that the deal will be approved. That said, the average spread since the merger announcement in early August has been 12.54%, and it hit a high of 31.7% on 9/19, according to StreetInsider's Merger Arb tracker.

The shareholder vote is scheduled for 11/17.

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