Merger Arbitrage Mondays – February 13, 2017
Merger Activity decreased last week with two 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 2017 | 18 |
| Total Number of Deals Not Completed in 2017 | 1 |
| Total Number of Pending Deals |
| Cash Deals | 51 |
| Stock Deals | 23 |
| Stock & Cash Deals | 12 |
| Special Conditions | 8 |
| Total Number of Pending Deals | 94 |
| Total Deal Size | $661.24 billion |
New Deals:
- The acquisition of First Community Financial Partners (FCFP) by First Busey Corporation (BUSE) for $235.8 million in a cash plus stock deal. Under the terms of the merger agreement, First Community shareholders will receive 0.396 shares of BUSE common stock and $1.35 in cash for each share of FCFP common stock.
- The acquisition of Mead Johnson Nutrition Company (MJN) by Reckitt Benckiser Group for $17.9 billion or $90.00 per share in cash.
Deal Updates:
- On February 3, 2017, Headwaters Incorporated (HW) announced that its stockholders approved the acquisition of Headwaters by Boral Limited at its special meeting of stockholders.
- On February 6, 2017, Qualcomm (QCOM) announced that it is extending its cash tender offer for all of the outstanding shares of NXP Semiconductors (NXPI). Qualcomm said the tender offer is now slated to expire March 7. It is a little surprising that only 14.8% of the NXPI shares had been tendered by February 6th, the original expiration date for the tender offer.
- On February 7, 2017, Columbia Pipeline Partners (CPPL) announced that it adjourned the special meeting of unitholders that was supposed to take place on February 7, 2017 until February 16, 2017.
- On February 8, 2017, the U.S. District Court for the District of Columbia issued an order enjoining the proposed merger between Cigna Corporation (CI) and Anthem (ANTM).
- On February 9, 2017, Fidelity & Guaranty Life (FGL) entered into Amendment No. 2 to Agreement and Plan of Merger with Anbang by extending the Outside Termination Date from February 8, 2017 to April 17, 2017. Under the terms of Amendment No. 2, the Outside Termination Date will be further extended to May 31, 2017 in the event that the Iowa Insurance Commissioner has, on or prior to April 17, 2017, publicly noticed a public hearing for the “Form A” change of control approval required by the Iowa Insurance Division. We have extended the closing date to June 30, 2017.
Closed Deals:
- The acquisition of Team Health Holdings (TMH) by funds affiliated with Blackstone on February 7, 2017. It took 99 days for this deal to be completed.
- The acquisition of LifeLock (LOCK) by Symantec Corporation (SYMC) on February 9, 2017. It took 81 days for this deal to be completed.
- The acquisition of WCI Communities (WCIC) by Lennar Corporation (LEN) on February 10, 2017. It took 141 days for this deal to be completed.
- The acquisition of Inteliquent (IQNT) by affiliate of GTCR LLC on February 10, 2017. It took 100 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $3.43 | 06/30/2017 | 58.31% | 155.35% |
| ALR | 02/01/2016 | Abbott Laboratories (ABT) | $56.00 | $39.27 | 03/31/2017 | 42.60% | 338.04% |
| CAB | 10/03/2016 | Bass Pro Shops (N/A) | $65.50 | $49.36 | 06/30/2017 | 32.70% | 87.12% |
| LSCC | 11/03/2016 | Canyon Bridge Capital Partners, Inc. (N/A) | $8.30 | $6.85 | 03/31/2017 | 21.17% | 167.96% |
| MON | 09/14/2016 | Bayer AG (BAYRY) | $128.00 | $107.57 | 12/31/2017 | 18.99% | 21.60% |
| RAD | 10/27/2015 | Walgreens Boots Alliance, Inc. (WBA) | $6.50 | $5.61 | 07/31/2017 | 15.86% | 34.47% |
| TSL | 08/01/2016 | Investor consortium comprising Mr. Gao and other entities. (N/A) | $11.60 | $10.13 | 03/31/2017 | 14.49% | 114.96% |
| WR | 05/31/2016 | Great Plains Energy Incorporated (GXP) | $60.00 | $53.58 | 06/30/2017 | 11.98% | 31.92% |
| SYT | 02/03/2016 | ChemChina (N/A) | $96.01 | $86.25 | 04/15/2017 | 11.32% | 67.71% |
| TWX | 10/22/2016 | AT&T, Inc. (T) | $107.50 | $96.58 | 12/31/2017 | 11.31% | 12.86% |
List of all pending deals:
The list of all pending deals is only available to InsideArbitrage Premium and Plus members.
Disclaimer: I hold positions in WhiteWave Foods (WWAV), Rite Aid (RAD), Syngenta (SYT), InterOil Corporation (IOC), Valspar (VAL) and Trina Solar (TSL). 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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