WLTW

Willis Towers Watson Public Limited Co

Finance/Real Estate, Healthcare, Event Driven/Special Sit


Presented:06/22/2020
Price:$193.67
Cap:$25.10B
Current Price:$291.14
Cap:$29.57B

Presented

Date06/22/2020
Price$193.67
Market Cap$25.10B
Ent Value$28.21B
P/E Ratio23.71x
Book Value$79.73
Div Yield1.36%
Shares O/S129.60M
Ave Daily Vol1,044,316
Short Int3.64%

Current

Price$291.14
Market Cap$29.57B
Willis Towers Watson Plc engages in the provision of advisory, broking, and solutions services. It operates through the following segments: Human Capital and Benefits (HCB); Corporate Risk and Broking (CRB); Investment, Risk and Reinsurance (IRR); and Benefits Delivery and Administration (BDA). The HCB segment provides advice, broking, solutions, and software for employee benefit plans, the human resources organizations, and the management teams. The CRB segment offers a range of risk advice, insurance brokerage, and consulting services to clients ranging from small businesses to corporations. The IRR segment focuses in helping clients free up capital and manage investment complexity. The BDA segment covers medical and ancillary benefit exchange and outsourcing services to active employees and retirees across both the group and individual markets. The company was founded in 1828 and is headquartered in London, United Kingdom.

Publicly traded companies mentioned herein: Aon PLC (AON), Arthur J Gallagher & Co (AJG), Brown & Brown Inc (BRO), (Willis Towers Watson PLC (WLTW) 

Highlights

The presenter has invested a significant amount of capital in a pair of positions involving the securities of companies in the midst of all-stock M&A transactions. This part of the larger “trade” is on the Aon (AON)/Willis Towers Watson (WLTW) deal and was characterized as a low-risk way to play potential upside on AON over the next year. The other position is outlined in Long DLPH 5 10/01/25. In his opinion, this AON/WLTW deal is a “straightforward merger” with underappreciated upside potential for AON. He’s long WLTW at $195 and short AON through Jan ‘21 $200 put. If AON, which trades at ~$189, is below $200, the trade makes nothing; however, the presenter sees upside to $250; saying “It’s a free call that should work out if the markets continue to normalize.”

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