Merger Arbitrage Mondays – August 29, 2016

  • August 28, 2016

Merger activity increased last week with six new deals announced and four 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 2016141
Total Number of Deals Not Completed in 201611
Total Number of Pending Deals
Cash Deals61
Stock Deals19
Stock & Cash Deals12
Special Conditions8
Total Number of Pending Deals100
Total Deal Size$1012.49 billion

New Deals:

  1. The acquisition of Medivation (MDVN) by Pfizer (PFE) for $14 billion or $81.50 per share in cash.
  2. The acquisition of CST Brands (CST) by Alimentation Couche-Tard for $4.4 billion or $48.53 per share in cash.
  3. The acquisition of CIFC (CIFC) by F.A.B. Partners for $333 million. Under the terms of the agreement, shareholders of CIFC will receive $11.46 in cash per share  — $11.36 per share as consideration in the merger, plus a $0.10 per share distribution. The CIFC Board has declared a cash distribution of $0.10 per share to be paid on September 12, 2016 to shareholders of record as of the close of business on August 31, 2016.
  4. The acquisition of AEP Industries (AEPI) by Berry Plastics Group (BERY) for $765 million. Under the terms of the agreement, each AEP shareholder will elect to receive either $110 in cash or 2.5011 shares of Berry common stock per AEP share in the transaction, subject to an overall 50/50 proration to ensure that 50% of the total outstanding AEP shares are exchanged for the cash consideration.
  5. The acquisition of Rackspace Hosting (RAX) by affiliates of Apollo Global Management for $4.3 billion or $32.00 per share in cash.
  6. The acquisition of Skullcandy (SKUL) by MRSK Hold and MRSL Merger, entities affiliated with Mill Road Capital Management (collectively, “Mill Road”) for $196.6 million or $6.35 per share in cash.

Deal Updates:

  1. On August 23, 2016, Cousins Properties Incorporated (CUZ) and Parkway Properties (PKY) announced that at special meetings held on Tuesday, stockholders of both companies approved all proposals related to the previously announced stock-for-stock merger between Cousins and Parkway.
  2. On August 24, 2016, Apollo Commercial Real Estate Finance (ARI) and Apollo Residential Mortgage (AMTG) announced that the common stockholders of AMTG approved the proposed acquisition of AMTG by ARI at a special meeting of AMTG stockholders. The transaction is expected to close on August 31, 2016, subject to customary closing conditions.
  3. On August 24, 2016, Skullcandy (SKULannounced the termination of the previously announced merger agreement with Incipio, and the entry into a new merger agreement with MRSK Hold and MRSL Merger entities affiliated with Mill Road Capital Management.
  4. On August 25, 2016, OPKO Health (OPK) announced that at a Special Shareholder Meeting, shareholders of Transition Therapeutics (TTHI) holding approximately 93% of the outstanding common shares, voted to approve the previously announced agreement under which OPKO Health will acquire Transition Therapeutics. The Court hearing for the final order is scheduled to take place on August 29, 2016, and the acquisition is expected to close on September 1, 2016.
  5. On August 26, 2016, Alere (ALR) issued a statement saying it’s suing the company it’s hoping to merge with, Abbott Laboratories (ABT). Alere said in a statement that it filed the complaint Thursday in Delaware Chancery Court hoping “to compel Abbott to fulfill its obligations under the terms of the merger agreement to take all actions necessary to promptly obtain all required anti-trust approvals.”

Closed Deals:

  1. The acquisition of Qlik Technologies (QLIK) by Thoma Bravo on August 22, 2016. It took 81 days for this deal to be completed.
  2. The acquisition of DreamWorks Animation (DWA) by NBCUniversal on August 23, 2016. It took 117 days for this deal to be completed.
  3. The acquisition of Heartware International (HTWR) by Medtronic (MDT) on August 23, 2016. It took 57 days for this deal to be completed.
  4. The acquisition of The First Marblehead Corporation (FMD) by FP Resources USA on August 23, 2016. It took 82 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

HTCH11/02/2015TDK Corporation (N/A)$4.00$1.5809/30/2016153.16%1747.03%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$39.5512/31/201641.59%122.43%
CI07/24/2015Anthem, Inc. (ANTM)$167.77$127.6503/31/201731.43%53.61%
HUM07/03/2015Aetna Inc. (AET)$223.18$177.3812/31/201625.82%76.00%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$7.4312/31/201621.13%62.20%
KLAC10/21/2015Lam Research Corporation (LRCX)$78.91$67.5212/31/201616.86%49.63%
LXK04/19/2016consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A)$40.50$35.4912/31/201614.12%41.55%
FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)$26.80$23.5906/30/201613.61%-82.78%
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$8.8308/31/201613.25%2418.18%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$34.7512/31/201611.94%35.15%

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

+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$1.5893,44809/30/2016153.16%1747.03%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$39.551,442,50112/31/201641.59%122.43%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$167.77$127.651,683,92303/31/201731.43%53.61%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$223.18$177.38525,96912/31/201625.82%76.00%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.436,025,00112/31/201621.13%62.20%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$78.91$67.521,392,59812/31/201616.86%49.63%
+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$35.49351,98712/31/201614.12%41.55%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$23.5985,07306/30/201613.61%0.00%
+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$8.83458,43308/31/201613.25%2418.18%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$34.75515,60212/31/201611.94%35.15%
+WR05/31/2016Great Plains Energy Incorporated (GXP)Special Conditions$12.2 billion$60.00$54.50693,00303/31/201710.09%17.21%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$32.70113,81509/30/201610.09%115.11%
+AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)All Cash$748.36 million$6.66$6.0530,65112/31/201610.08%29.68%
+TSL08/01/2016Investor consortium comprising Mr. Gao and other entities. (N/A)All Cash$2.3 billion$11.60$10.541,044,33003/31/201710.06%17.15%
+SCTY08/01/2016Tesla Motors (TSLA)All Stock$5.4 billion$24.20$22.051,488,04904/30/20179.75%14.58%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$84.18$78.0113,155,59312/31/20167.91%23.27%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$105.46148,04103/31/20177.15%12.19%
+IOC07/21/2016Exxon Mobil Corporation (XOM)Special Conditions$2.5 billion$52.07$49.15196,69609/30/20165.94%67.76%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.29$13.61179,05108/31/20164.96%905.66%
+SEMI08/17/2016GlobalWafers Co., Ltd. (N/A)All Cash$683 million$12.00$11.45452,02106/30/20174.80%5.75%
+CFNL08/18/2016United Bankshares, Inc. (UBSI)All Stock$912 million$27.53$26.31449,40106/30/20174.65%5.57%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$33.06$31.7180,03612/31/20164.26%12.53%
+PBCP06/02/2016Prudential Bancorp, Inc. (PBIP)Special Conditions$38.1 million$11.28$10.8545012/31/20163.96%11.67%
+YDKN07/21/2016F.N.B. Corporation (FNB)All Stock$1.4 billion$26.63$25.70624,56903/31/20173.63%6.19%
+JOY07/21/2016Komatsu America Corp. (N/A)All Cash$3.7 billion$28.30$27.331,719,12406/30/20173.55%4.25%
+LLTC07/26/2016Analog Devices, Inc. (ADI)Cash Plus Stock$14.8 billion$60.61$58.541,463,34906/30/20173.54%4.24%
+WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)Special Conditions$18 million$0.95$0.92087,33103/31/20173.26%5.56%
+STRZA06/30/2016Lions Gate Entertainment Corp. (LGF)Cash Plus Stock$4.4 billion$32.33$31.31690,82112/31/20163.25%9.57%
+CIFC08/19/2016F.A.B. Partners (N/A)All Cash$333 million$11.46$11.159,86612/31/20162.78%8.18%
+CLBH06/22/2016First Bancorp (FBNC)All Stock$97.3 million$20.10$19.591,79403/31/20172.60%4.44%
+DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)All Cash$556 million$6.70$6.53504,11212/31/20162.60%7.66%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.184,79408/15/20162.20%0.00%
+OSHC07/13/2016OceanFirst Financial Corp. (OCFC)Cash Plus Stock$145.6 million$23.30$22.8044,47601/31/20172.18%5.14%
+CST08/22/2016Alimentation Couche-Tard Inc. (N/A)All Cash$4.4 billion$48.53$47.542,670,11703/31/20172.08%3.55%
+TLN06/03/2016affiliates of Riverstone Holdings LLC (N/A)All Cash$5.2 billion$14.00$13.72732,30012/31/20162.04%6.01%
+SCNB06/27/2016People’s United Financial Inc. (PBCT)All Stock$402 million$35.31$34.6611,00912/31/20161.88%5.53%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$55.97232,47001/01/20171.84%5.37%
+WWAV07/07/2016Danone (N/A)All Cash$12.5 billion$56.25$55.242,834,14912/31/20161.83%5.38%
+LNKD06/13/2016Microsoft Corporation (MSFT)All Cash$26.2 billion$196.00$192.501,128,27712/31/20161.82%5.35%
+EVER08/08/2016TIAA (N/A)All Cash$2.5 billion$19.50$19.171,285,87906/30/20171.72%2.06%
+EVHC06/15/2016AmSurg Corp. (AMSG)All Stock$7.66 billion$21.24$20.901,477,29012/31/20161.64%4.82%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$46.96$46.20446,40712/31/20161.64%4.82%
+RAX08/26/2016affiliates of Apollo Global Management, LLC (N/A)All Cash$4.3 billion$32.00$31.5038,577,67312/31/20161.59%4.67%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$18.53$18.2471212/31/20161.57%4.63%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.7945,15706/30/20161.52%0.00%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$32.0457,68912/31/20161.44%4.23%
+MDVN08/22/2016Pfizer Inc. (PFE)All Cash$14 billion$81.50$80.357,492,35212/31/20161.43%4.21%
+PWX08/15/2016Genesee & Wyoming Inc. (GWR)All Cash$126 million$25.00$24.653,46812/31/20161.42%4.18%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.09$14.88687,95412/31/20161.41%4.15%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$78.43966,39407/31/20161.40%0.00%
+ARMH07/18/2016SoftBank Group (SFBTY)All Cash$32 billion$67.32$66.42864,08412/31/20161.36%3.99%
+SGI08/12/2016Hewlett Packard Enterprise Company (HPE)All Cash$275 million$7.75$7.661,146,51701/31/20171.17%2.77%
+SMT05/26/2016Foxconn Technology Group (N/A)All CashN/A$4.50$4.455,58707/31/20161.12%0.00%
+YCB05/03/2016WesBanco Inc. (WSBC)Cash Plus Stock$221 million$38.66$38.275,20812/31/20161.03%3.03%
+SAAS05/18/2016NICE Systems Ltd. (NICE)All Cash$940 million$14.00$13.87218,89712/31/20160.94%2.76%
+BBX07/28/2016BFC Financial (BFCF)All Cash$293 million$20.00$19.826,62906/30/20170.91%1.09%
+RRMS05/31/2016SemGroup Corporation (SEMG)All Stock$1.74 billion$25.79$25.5740,23009/30/20160.86%9.86%
+FEIC05/27/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$4.2 billion$107.50$106.68332,07101/31/20170.77%1.81%
+MRD05/16/2016Range Resources Corporation (RRC)All Stock$4.4 billion$14.87$14.791,455,88012/31/20160.53%1.57%
+AVG07/07/2016Avast Software (N/A)All Cash$1.3 billion$25.00$24.871,554,58510/15/20160.52%4.06%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.901,105,82409/01/20160.50%61.14%
+GLDC07/19/2016Utz Quality Foods, Inc. (N/A)All Cash$135 million$12.00$11.9427,86312/31/20160.50%1.48%
+SKUL08/24/2016Mill Road (N/A)All Cash$196.6 million$6.35$6.3277,03709/30/20160.47%5.41%
+MHGC05/09/2016SBE (N/A)All Cash$794 million$2.25$2.2438,85912/31/20160.45%1.31%
+SQNM07/27/2016Laboratory Corporation of America (LH)All Cash$371 million$2.40$2.39850,68612/31/20160.42%1.23%
+IMPR07/13/2016an affiliate of Thoma Bravo, LLC (N/A)All Cash$544 million$19.25$19.18108,47312/31/20160.36%1.07%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.88176,84403/31/20170.35%0.60%
+ASEI06/21/2016OSI Systems, Inc. (OSIS)All Cash$269 million$37.00$36.8735,15312/31/20160.35%1.04%
+PGND08/09/2016EQT Equity fund EQT VII (N/A)All Cash$2.35 billion$40.50$40.36364,42712/31/20160.35%1.02%
+PLCM07/08/2016Siris Capital Group, LLC (N/A)All Cash$2 billion$12.50$12.461,154,85209/30/20160.32%3.66%
+REXI05/23/2016C-III Capital Partners (N/A)All Cash$270 million$9.78$9.7517,50311/15/20160.31%1.44%
+EPIQ07/27/2016OMERS Private Equity and Harvest Partners (N/A)All Cash$1 billion$16.50$16.45101,42312/31/20160.30%0.89%
+OUTR07/25/2016affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (N/A)All Cash$1.6 billion$52.00$51.87317,58009/30/20160.25%2.86%
+DRII06/29/2016Apollo Global Management, LLC (APO)All Cash$2.2 billion$30.25$30.19590,21612/31/20160.20%0.59%
+FLTX08/01/2016Verizon (VZ)All Cash$2.4 billion$60.00$59.90401,76412/31/20160.17%0.49%
+MFRM08/07/2016Steinhoff International Holdings NV (N/A)All Cash$3.8 billion$64.00$63.90345,92709/30/20160.16%1.79%
+RDEN06/16/2016Revlon, Inc. (REV)All Cash$870 million$14.00$13.98127,42412/31/20160.14%0.42%
+GK08/16/2016Cintas Corporation (CTAS)All Cash$2.2 billion$97.50$97.39335,18102/28/20170.11%0.23%
+RLYP07/21/2016Galenica Group (N/A)All Cash$1.53 billion$32.00$31.971,072,54709/30/20160.09%1.07%
+SGNT07/11/2016Nichi-Iko Pharmaceutical Co., Ltd (N/A)All Cash$736 million$21.75$21.731,293,29103/31/20170.09%0.16%
+AXLL06/10/2016Westlake Chemical Corporation (WLK)All Cash$3.8 billion$33.00$32.97594,10612/31/20160.09%0.27%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.97450,98112/31/20160.05%0.15%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$24.99621,01712/31/20160.04%0.12%
+NTK07/06/2016Melrose Industries PLC (N/A)All Cash$2.8 billion$86.00$85.9928,88208/31/20160.01%2.12%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$43.67$43.703,758,80609/02/2016-0.07%-6.15%
+NATL07/25/2016Great American Insurance Company (N/A)All Cash$660 million$32.50$32.5610,77612/31/2016-0.18%-0.54%
+IMS05/03/2016Quintiles Transnational Holdings Inc. (Q)All Stock$9 billion$29.06$29.13210,19512/31/2016-0.22%-0.66%
+AEPI08/25/2016Berry Plastics Group, Inc. (BERY)All Cash$765 million$110.00$110.33239,72212/31/2016-0.30%-0.88%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$17.33$17.39620,72612/31/2016-0.36%-1.07%
+ACAS05/23/2016Ares Capital Corporation (ARCC)Cash Plus Stock$3.4 billion$16.59$16.68738,06005/31/2017-0.55%-0.73%
+LSBG05/05/2016Bar Harbor Bankshares (BHB)All Stock$143 million$17.72$17.838,09203/31/2017-0.63%-1.07%
+MGN05/24/2016Hecla Mining Co. (HL)All StockN/A$1.27$1.29182,17809/30/2016-1.31%-14.91%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$10.863,146,23009/30/2016-1.47%-16.80%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$12.96$13.196,45106/30/2016-1.77%10.80%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.17$12.4266512/31/2016-2.00%-5.88%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.55268,88712/15/2016-2.34%-7.90%
+TTHI06/30/2016Opko Health, Inc. (OPK)All Stock$60 million$1.42$1.4920,66709/01/2016-4.52%-549.38%
+MWW08/09/2016Randstad Holding (N/A)All Cash$429 million$3.40$3.682,013,99912/31/2016-7.61%-22.40%
+AEGR06/15/2016QLT Inc. (QLTI)All Stock$267.27 million$1.46$1.60129,20512/31/2016-8.98%-26.43%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$5.00$12.00165,26412/31/2016-58.33%-171.71%

Disclaimer: I hold long positions in Apollo Education (APOL), Monster Worldwide (MWW) and Hutchinson Technology (HTCH). 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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