The article explores how the prices of companies involved in mergers change after the announcement. By analyzing over 1000 merger offers, the researchers found that the risk of a deal being completed affects the price difference between bidders and targets. They also discovered that liquidity risk and price pressure play a role in this price difference. However, they did not find strong evidence supporting the idea that limits on arbitrage capital impact the price difference. These findings help explain why some investors make profits in risk arbitrage and why prices vary across different mergers.