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Herein we explore merger/risk arbitrage performance for hostile/unsolicited offers. We find that, regardless of merger outcome, the possibility of a sweetened offer generally adds a key risk factor. Moreover, the probability of receiving one or more sweetened offers is found to be significantly related to a merger type thereby signaling information asymmetry regarding post-merger improvement. Accordingly, we develop a simple sweetening prediction model which may prove helpful to those involved in merger/risk arbitrage, especially for hostile/unsolicited takeover attempts. References Full Text: Article Restricted Access