Arbitrage: 15.7% gross, 64-96% annualized depending on 60-90 days - $HHS

HHS: Harte Hanks has agreed to a $5-per-share acquisition by Starr Equity, creating a merger-arbitrage opportunity backed by unanimous board approval and support from a 5.7% activist director. Starr plans to cut duplicated costs, combine the business with Hudson Talent Solutions and use its $215M NOL. The main closing risk is $15M of debt financing that has not yet been secured; cash is also capped at 50%, exposing holders to proration into an illiquid preferred.

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