1. Scott Siegel, manager of an M&A hedge fund, watched the tape go across his Bloomberg screen at 4:00 p.m. on June 13, 2001. Celera Genomics, a Rockville company known for mapping the human genome, announced it would acquire AXYS Pharmaceuticals Inc., an integrated small molecule drug discovery and development company. The deal was structured as a stock swap in which AXYS shareholders would receive 0.1016 Celera share for each AXYS share. Celera had closed the previous day at $41.75, and AXYS at $3.45. What would Siegel do as an M&A arbitrageur? Explain.