Still keeping its stance on its pending $482 million takeout by Tyco International Ltd. close to the vest, McGrath RentCorp will likely be operating solo come next quarter. So predicted several Street sources, but the spread on the deal suggests the arbitrage community, perhaps, has a somewhat different mindset. More likely, investors see little downside to McGrath’s current share price-deal or no deal. At press time, Tyco closed at $21.87 per share, valuing McGrath shares at $28.23 each, based on the ratio of 50% of 0.8444 Tyco shares plus 50% cash, or $19. At press time, Livermore, Calif.-based McGrath closed at $27.20 per share, only $1.03 south of its value in the transaction.
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