A Good Time to Visit State Street

This column was originally published on RealMoney on Feb. 6 at 11:00 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

Large acquisitions -- with their accompanying press releases, conference calls, PowerPoint presentations and eventually proxy statements -- provide analysts with reams of data about the businesses of both the target and the acquirer.

While analysts are poring through these data, investors who are fortunate enough to be long shares of the target are considering whether to hold or sell their shares. Meanwhile, risk arbitragers are busy buying shares of the target and shorting those of the acquirer, frantically estimating the risks and timing of a deal as well as the possibility for other bidders.

This process was set in motion yesterday, when State Street (STT Quote) announced the acquisition of crosstown Boston rival Investors Financial (IFIN Quote), sending State Street's shares down 6.5% on the day. ...