Krystal Hu

(Reuters) – Investors are making bets on the outcome of mergers and acquisitions. They have been betting against shares of companies that inked leveraged buyouts following the renegotiating of a deal by Thoma Bravo, a private equity firm.

A buyout company convinced a software firm Anaplan (NYSE:) Inc will agree to a $300 million reduction in the purchase price of $10.7 billion, according to companies on Monday.

Thoma Bravo asserted that Anaplan had violated conditions for the completion of their deal. However, Anaplan disagreed with this and it was able to negotiate a 3.4% discount to the contract price in order not to get into lengthy litigation.

The Index dropped 24% in the past year due to the renewal of this deal. This was despite concerns over rising inflation and a slowing economy. Investors have speculated that private equity firms might be feeling remorseful and may also seek to lower their agreements.

“This opens up some Pandora (OTC)’s boxes because we don’t know if this is just a one-off or if there are buyers who signed contracts at the start of the year looking for recuts,” stated Chris Pultz at Kellner Capital, portfolio manager for merger arbitrage.

SailPoint Technologies Holdings Inc (NYSE:) Inc fell 3% Monday, fueled by investor worries that Thoma Brau will try to renegotiate her $6.9billion purchase of the identity security company.

Thoma Bravo was told by sources that Anaplan had made a specific case and that Anaplan did not plan to forego the SailPoint deal.

SailPoint has not yet responded to comment requests. Thoma Bravo did not respond to requests for comment.

Citrix Systems Inc’s shares dropped 2% Monday, citing concerns over the $16.5 million sale to Vista Equity Partners LP and Elliott Investment Management LP.

Tenneco Inc’s shares dropped 4% on Monday after Tenneco Inc was questioned about its $7.1 billion sale (NYSE:) Inc).

Tenneco and Citrix did not respond immediately to our requests for comment.

Based on where the target company shares trade, the odds of these leveraged buyouts being completed are higher than 50% for investors. Investors say that the uncertainty around these deals is making them reconsider whether or not they priced for the worst case scenario. The probability that these deals will close hasn’t changed, you could even argue. However, the downside of these deals has increased. “And that has contributed to spreadings widening,” Roy Behren, portfolio manager at Westchester Capital Management said.