UniCredit's Acquisition Drive Provides Profit-Making Opportunity -- Market Talk (Dow Jones)

1331 GMT - There is opportunity to make profits from buying shares in companies targeted by UniCredit, Roemer Capital says in a note to clients. "We believe that the significant performance gap between the shares of UniCredit and its targets will continue to widen, providing arbitrage opportunities for the patient investor," the analysts write. The Italian bank is attempting to take over domestic peer Banco BPM, and has moved to become the top shareholder in Germany's Commerzbank and Greece's Alpha Bank. The targets continue to look cheap based on multiples and have seen their share prices rally massively, outperforming UniCredit's stock, they note. "If recent history is a guide, a long-short combination appears to be a reasonable market-neutral idea, offering a highly attractive risk-reward," they add. (elena.vardon@wsj.com) (END) Dow Jones Newswires Recommended Stories