Many options traders who had taken bets on a successful takeover of Time Warner Inc by Rupert Murdoch's Twenty-First Century Fox Inc are facing a grim lesson in the risks of betting on deals.Murdoch pulled the $80 billion offer after the close of trading on Tuesday, saying Time Warner management had refused to engage in discussions. He also cited the sharp drop in Fox's share price since the proposal last month, saying it "makes the transaction unattractive to Fox shareholders."Time Warner shares dove about 10 percent to $76.80 from $85.19 following news of the offer's withdrawal, while Fox's stock gained around 9 percent.Expectations that Fox would increase its bid to at least $90 a share and even above $100 a share had prompted traders and investors to put down a series of bets.
Twenty-First Century Fox, Inc., formerly News Corporation, is a diversified global media and entertainment company with operations in cable network programming; television; filmed entertainment; direct broadcast satellite television, and other, corporate and eliminations. Shares of FOXA fell by 0.7% or $-0.22/share to $31.30. In the past year, the shares have traded as low as $30.67 and as high as $36.43. On average, 14931000 shares of FOXA exchange hands on a given day and today's volume is recorded at 26445608.
Time Warner Inc. (Time Warner) is a media and entertainment company. Shares of TWX fell by 0.4% or $-0.34/share to $85.19. In the past year, the shares have traded as low as $57.59 and as high as $88.13. On average, 7498080 shares of TWX exchange hands on a given day and today's volume is recorded at 13323812.
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