Interesting approach to thinking about how the closing of the arbitrage gap will transpire once merger announced. Arb gap at 18.5%. The assumption is that current combined market cap ($178b + $53b) will stay stagnant at moment of merger. Then to close the arb gap of 18.5% and maintain current market cap, AMD moves down 4.5% and xilinx needs to go up 14%. After the gap closes, it makes sense for the stock prices to be pegged to eachother and rise / fall based on combined company dynamics.
 any thoughts?

$AMD(AMD)$ $Xilinx(XLNX)$