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Merger Arbitrage Mondays – July 18, 2016

  • July 17, 2016

Merger activity decreased last week with three new deals announced and six deals closing.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2016118
Total Number of Deals Not Completed in 20169
Total Number of Pending Deals
Cash Deals53
Stock Deals19
Stock & Cash Deals14
Special Conditions9
Total Number of Pending Deals95
Total Deal Size$911.88 billion

New Deals:

  1. The acquisition of Sagent Pharmaceuticals (SGNT) by Nichi-Iko Pharmaceutical for $736 million or $21.75 per share in cash.
  2. The acquisition of Ocean Shore Holding (OSHC) by OceanFirst Financial (OCFC) for $145.6 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Ocean Shore Holding will receive $4.35 in cash and 0.9667 shares of OceanFirst common stock for each share of Ocean Shore common stock.
  3. The acquisition of Imprivata (IMPR) by an affiliate of Thoma Bravo for $544 million or $19.25 per share in cash.

Deal Updates:

  1. On July 11, 2016, Caesars Entertainment (CZR) and Caesars Acquisition (CACQ) amended their proposed merger agreement, which is intertwined with the $18 billion bankruptcy of the casino company’s main operating unit. Under the amended terms, Caesars Acquisition shareholders will receive 27 percent of the merged entity. Under the original proposal, they would have received 38 percent, according to regulatory filings. A confirmation hearing for CEOC’s Plan of Reorganization has been set for January 17, 2017.
  2. On July 12, 2016, Exxon Mobil (XOM) offered to buy InterOil Corp (IOC) topping the $2.2 billion deal from Australia’s Oil Search.  Exxon’s interest, which has not yet been made public by either company, is comprised of Exxon stock, as well as a Contingent Value Right (CVR), a seldom used instrument, which may give InterOil shareholders cash on a sliding scale depending on the value of a pending gas deposit discovery.
  3. On July 12, 2016, Abbott Laboratories (ABT) and St. Jude Medical (STJ) said they each received a request for additional information from the U.S. Federal Trade Commission related to their deal.
  4. On July 12, 2016, The Federal Reserve Board gave its approval to KeyCorp (KEY) to acquire First Niagara Financial Group (FNFG)
  5. On July 13, 2016, Carmike (CKEC) announced that it would postpone Friday’s special shareholder meeting to vote on AMC’s $740 million, $30 per share offer. The new meeting date will be July 25 at 9 a.m.
  6. On July 13, 2016, Huntington Bancshares (HBANwon U.S. antitrust approval to buy FirstMerit Corp (FMER).
  7. On July 14, 2016, BBCN Bancorp (BBCN) and Wilshire Bancorp (WIBC) jointly announced that each company’s shareholders voted in favor of the proposed merger of equals between the two companies. BBCN and Wilshire also announced that the merger transaction is scheduled for completion at the close of business on July 29, 2016, subject to the satisfaction of other customary closing conditions.

Closed Deals:

  1. The acquisition of Hatteras Financial (HTS) by Annaly Capital Management (NLY) on July 12, 2016. It took 92 days for this deal to be completed.
  2. The acquisition of IHS (IHS) by Markit (MRKT) on July 13, 2016. It took 114 days for this deal to be completed.
  3. The acquisition of Ku6 Media (KUTV) by Shanda Investment Holdings Limited on July 12, 2016. It took 98 days for this deal to be completed.
  4. The acquisition of Demandware (DWRE) by salesforce.com (CRM) on July 13, 2016. It took 42 days for this deal to be completed.
  5. The acquisition of LDR Holding Corporation (LDRH) by Zimmer Biomet Holdings (ZBH) on July 13, 2016. It took 36 days for this deal to be completed.
  6. The acquisition of Celator Pharmaceuticals (CPXX) by Jazz Pharmaceuticals Public Limited Company (JAZZ) on July 14, 2016. It took 44 days for this deal to be completed.

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

HUM07/03/2015Aetna Inc. (AET)$224.35$158.8912/31/201641.20%90.59%
CI07/24/2015Anthem, Inc. (ANTM)$172.60$131.6712/31/201631.08%68.34%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$43.6212/31/201628.38%62.41%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$7.1912/31/201625.17%55.35%
HTCH11/02/2015TDK Corporation (N/A)$4.00$3.3109/30/201620.85%102.82%
WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)$0.95$0.81203/31/201717.00%24.23%
AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)$6.66$5.8912/31/201613.07%28.74%
DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)$6.70$5.9812/31/201612.04%26.47%
APOL02/08/2016A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A)$10.00$9.0408/31/201610.62%88.09%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$35.6412/31/20169.15%20.11%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.

SymbolAnnounced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

VolumeClosing

Date

ProfitAnnu.

Profit

+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$224.35$158.891,697,09812/31/201641.20%90.59%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$172.60$131.672,478,43512/31/201631.08%68.34%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$43.625,606,22212/31/201628.38%62.41%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.1937,995,14912/31/201625.17%55.35%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.31101,29909/30/201620.85%102.82%
+WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)Special Conditions$18 million$0.95$0.81237,48103/31/201717.00%24.23%
+AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)All Cash$748.36 million$6.66$5.899,70012/31/201613.07%28.74%
+DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)All Cash$556 million$6.70$5.98310,63412/31/201612.04%26.47%
+APOL02/08/2016A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A)All Cash$1.1 billion$10.00$9.04676,48708/31/201610.62%88.09%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$35.641,448,57512/31/20169.15%20.11%
+LXK04/19/2016consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A)All Cash$3.6 billion$40.50$37.84152,15812/31/20167.03%15.46%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.4525,74409/30/20166.94%34.23%
+WR05/31/2016Great Plains Energy Incorporated (GXP)Special Conditions$12.2 billion$60.00$56.22725,81303/31/20176.72%9.59%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.0733,70508/15/20165.86%76.43%
+STRZA06/30/2016Lions Gate Entertainment Corp. (LGF)Cash Plus Stock$4.4 billion$31.57$29.991,170,62712/31/20165.28%11.62%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.26$13.55131,30008/15/20165.24%68.34%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$34.28348,96009/30/20165.02%24.75%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$108.24261,83603/31/20174.40%6.27%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.43169,75406/30/20164.24%0.00%
+SCNB06/27/2016People’s United Financial Inc. (PBCT)All Stock$402 million$34.42$33.1845,23512/31/20163.74%8.22%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$83.41$80.492,285,92612/31/20163.63%7.98%
+PBCP06/02/2016Prudential Bancorp, Inc. (PBIP)Special Conditions$38.1 million$11.28$10.9020012/31/20163.49%7.67%
+LNKD06/13/2016Microsoft Corporation (MSFT)All Cash$26.2 billion$196.00$189.57939,57012/31/20163.39%7.46%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$76.97879,08007/31/20163.33%93.38%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$32.48351,31306/30/20163.14%0.00%
+OSHC07/13/2016OceanFirst Financial Corp. (OCFC)Cash Plus Stock$145.6 million$22.48$21.80198,20101/31/20173.10%5.74%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$10.38878,32409/30/20163.08%15.21%
+FMD06/02/2016FP Resources USA Inc. (N/A)All Cash$65.5 million$5.05$4.918,01809/30/20162.85%14.06%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$47.73$46.52743,12612/31/20162.59%5.71%
+AXLL06/10/2016Westlake Chemical Corporation (WLK)All Cash$3.8 billion$33.00$32.351,465,03012/31/20162.01%4.42%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$31.8641,42512/31/20162.01%4.42%
+QLIK06/02/2016Thoma Bravo, LLC (N/A)All Cash$3 billion$30.50$29.901,072,89709/30/20162.01%9.90%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$19.08$18.711,44012/31/20162.00%4.40%
+TLN06/03/2016affiliates of Riverstone Holdings LLC (N/A)All Cash$5.2 billion$14.00$13.73956,61512/31/20161.97%4.32%
+EVHC06/15/2016AmSurg Corp. (AMSG)All Stock$7.66 billion$26.31$25.811,281,00812/31/20161.93%4.25%
+MRD05/16/2016Range Resources Corporation (RRC)All Stock$4.4 billion$16.16$15.861,984,62212/31/20161.91%4.19%
+LSBG05/05/2016Bar Harbor Bankshares (BHB)All Stock$143 million$18.59$18.2515,27503/31/20171.88%2.68%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.48$12.25512/31/20161.87%4.11%
+MGN05/24/2016Hecla Mining Co. (HL)All StockN/A$1.38$1.3576,13409/30/20161.86%9.19%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.51$15.23406,02212/31/20161.84%4.04%
+MHGC05/09/2016SBE (N/A)All Cash$794 million$2.25$2.2115,96612/31/20161.81%3.98%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$76.28$75.131,638,76806/30/20161.52%0.00%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.72440,04107/21/20161.42%172.75%
+MESG05/23/2016Siris Capital Group, LLC (N/A)All Cash$643 million$25.00$24.6589,12409/30/20161.42%7.00%
+PLCM07/08/2016Siris Capital Group, LLC (N/A)All Cash$2 billion$12.50$12.332,431,54909/30/20161.38%6.80%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$43.76$43.193,277,41709/30/20161.32%6.51%
+AVG07/07/2016Avast Software (N/A)All Cash$1.3 billion$25.00$24.681,193,71910/15/20161.30%5.32%
+YCB05/03/2016WesBanco Inc. (WSBC)Cash Plus Stock$221 million$38.62$38.1818,10612/31/20161.14%2.51%
+CLBH06/22/2016First Bancorp (FBNC)All Stock$97.3 million$18.60$18.3943,61803/31/20171.13%1.61%
+SAAS05/18/2016NICE Systems Ltd. (NICE)All Cash$940 million$14.00$13.85848,15112/31/20161.08%2.38%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$56.40280,22301/01/20171.06%2.33%
+IMPR07/13/2016an affiliate of Thoma Bravo, LLC (N/A)All Cash$544 million$19.25$19.05742,02412/31/20161.05%2.31%
+FEIC05/27/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$4.2 billion$107.50$106.41421,82501/31/20171.02%1.90%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$18.00$17.82777,36912/31/20160.98%2.16%
+RDEN06/16/2016Revlon, Inc. (REV)All Cash$870 million$14.00$13.89326,50712/31/20160.79%1.74%
+RRMS05/31/2016SemGroup Corporation (SEMG)All Stock$1.74 billion$27.26$27.0570,25609/30/20160.76%3.75%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$4.2058,24912/31/20160.71%1.57%
+HTWR06/27/2016Medtronic plc (MDT)All Cash$1.1 billion$58.00$57.59343,62610/28/20160.71%2.55%
+RLOC06/27/2016Gannett Co., Inc. (GCI)All Cash$156 million$4.60$4.5719,92709/30/20160.66%3.24%
+WWAV07/07/2016Danone (N/A)All Cash$12.5 billion$56.25$55.893,342,82812/31/20160.64%1.42%
+MKTO05/31/2016Vista Equity Partners (N/A)All Cash$1.79 billion$35.25$35.03433,00009/30/20160.63%3.10%
+HNSN04/20/2016Auris Surgical Robotics (N/A)All Cash$80 million$4.00$3.9818,76806/30/20160.50%0.00%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$20.93$20.83561,02709/30/20160.47%2.30%
+QLGC06/15/2016Cavium, Inc. (CAVM)Cash Plus Stock$1.36 billion$15.03$14.97642,11609/30/20160.41%2.03%
+SQI05/31/2016affiliates of Accel-KKR (N/A)All Cash$509 million$17.75$17.68482,41109/30/20160.40%1.95%
+DRII06/29/2016Apollo Global Management, LLC (APO)All Cash$2.2 billion$30.25$30.141,100,70412/31/20160.36%0.80%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$10.26$10.223,467,17409/30/20160.35%1.74%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.672,710,86006/30/20160.30%0.00%
+KKD05/09/2016JAB Beech Inc. (N/A)All Cash$1.35 billion$21.00$20.941,212,78009/30/20160.29%1.41%
+SMT05/26/2016Foxconn Technology Group (N/A)All CashN/A$4.50$4.4963,47707/31/20160.22%6.25%
+REXI05/23/2016C-III Capital Partners (N/A)All Cash$270 million$9.78$9.7657,86711/15/20160.20%0.62%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.88407,77112/31/20160.20%0.44%
+ELRC05/31/2016Platinum Equity (N/A)All Cash$382.2 million$15.50$15.4777,98209/30/20160.19%0.96%
+DWA04/28/2016NBCUniversal (N/A)All Cash$3.8 billion$41.00$40.97262,82912/31/20160.07%0.16%
+CERE06/17/2016Land O’Lakes (N/A)All Cash$17.2 million$0.40$0.40406,43109/30/20160.00%0.00%
+EXAM04/27/2016an affiliate of Leonard Green & Partners, L.P. (N/A)All Cash$2.2 billion$35.05$35.07478,82009/30/2016-0.06%-0.28%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$34.03181,65603/31/2017-0.09%-0.13%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$11.32$11.34366,02707/29/2016-0.13%-4.47%
+SGNT07/11/2016Nichi-Iko Pharmaceutical Co., Ltd (N/A)All Cash$736 million$21.75$21.80899,25803/31/2017-0.23%-0.33%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$25.1861,83806/30/2016-0.71%14.50%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$25.18684,12212/31/2016-0.71%-1.57%
+NTK07/06/2016Melrose Industries PLC (N/A)All Cash$2.8 billion$86.00$86.6257,13908/31/2016-0.72%-5.94%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$25.80N/A09/30/2016-0.78%-3.82%
+ASEI06/21/2016OSI Systems, Inc. (OSIS)All Cash$269 million$37.00$37.4244,87712/31/2016-1.12%-2.47%
+TTHI06/30/2016Opko Health, Inc. (OPK)All Stock$60 million$1.55$1.5720,94412/31/2016-1.13%-2.49%
+ACAS05/23/2016Ares Capital Corporation (ARCC)Cash Plus Stock$3.4 billion$15.77$15.96558,13805/31/2017-1.21%-1.39%
+IMS05/03/2016Quintiles Transnational Holdings Inc. (Q)All Stock$9 billion$27.52$27.86669,77712/31/2016-1.22%-2.67%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$12.93$13.1816,44406/30/2016-1.86%37.79%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$16.55$17.151009/30/2016-3.50%-17.29%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.771,088,02712/15/2016-3.55%-8.63%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$31.48564,22212/31/2016-4.70%-10.34%
+SKUL06/24/2016Incipio LLC (N/A)All Cash$177 million$5.75$6.10163,22609/30/2016-5.74%-28.30%
+AEGR06/15/2016QLT Inc. (QLTI)All Stock$267.27 million$1.38$1.51395,03612/31/2016-8.31%-18.27%
+IOC05/20/2016Oil Search Limited (OSH.AX)All Stock$2.2 billion$42.69$47.61943,93709/30/2016-10.34%-51.00%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.65$11.0063,33512/31/2016-57.75%-126.97%

Disclaimer: Clients of Signal Partners, LLC  and I may have positions in any of these stocks at any time. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

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