Merger Arbitrage Mondays – February 27, 2017

Merger activity remained the same with five 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.

We are very excited to release a new feature this week called Merger Arbitrage News that displays latest news from various sources as well as latest SEC filings for all active deals. Users who have logged in can filter the news and filings for just the companies they are interested in instead of seeing all news and filings. We hope to continue enhancing this feature by adding more news sources and fine tuning the types of SEC filings that are displayed.

Given below is a screenshot of this feature in action with news and SEC filings displayed for some of the six deals I am invested in. I would love to hear from you if you have any thoughts or suggestions about this new feature.

Merger Arbitrage News Screenshot

Merger Arbitrage News Screenshot

Deal Statistics:

Total Number of Deals Closed in 2017 26
Total Number of Deals Not Completed in 2017 2
Total Number of Pending Deals
Cash Deals 52
Stock Deals 23
Stock & Cash Deals 13
Special Conditions 7
Total Number of Pending Deals 95
Total Deal Size $638.82 billion

New Deals:

  1. The acquisition of Lumos Networks (LMOS) by EQT Infrastructure investment strategy for $950 million or $18.00 per share in cash.
  2. The acquisition of Popeyes Louisiana Kitchen (PLKI) by Restaurant Brands International (QSR) for $1.8 billion or $79.00 per share in cash.
  3. The acquisition of Delta Natural Gas Company (DGAS) by Peoples Natural Gas for $227 million or $30.50 per share in cash.
  4. The acquisition of FBR & Co. (FBRC) by B. Riley Financial (RILY) for $160.1 million in an all stock deal. Under the terms of the agreement, FBR shareholders will receive .671 shares of B. Riley common stock and an anticipated pre-closing cash dividend of $8.50 per share assuming sufficient funds are available for distribution.
  5. The acquisition of DigitalGlobe (DGI) by MacDonald, Dettwiler and Associates (MDA.TO) for $3.6 billion in a cash plus stock deal. Under the terms of the agreement, each DigitalGlobe common share will be exchanged for US$17.50 in cash and 0.3132 MDA common shares, representing a per share value of US$17.50 based on MDA’s unaffected closing share price of C$73.40 on the Toronto Stock Exchange (TSX) on February 16, 2017.

Deal Updates:

  1. On February 20, 2017, InterOil Corporation (IOC) announced that the Supreme Court of Yukon had granted a final order approving the arrangement between InterOil and Exxon Mobil Corporation (XOM). We updated the closing date for this deal to February 27, 2017.
  2. On February 21, 2017, Caesars Entertainment Corporation (CZR) and Caesars Acquisition Company (CACQ) announced that they have amended the terms of their proposed merger. Under the terms of the Merger Agreement, as amended, Caesars Acquisition stockholders will receive 1.625 shares of Caesars Entertainment for each Caesars Acquisition share they own, subject to anti-dilution adjustments in certain circumstances set forth in the Merger Agreement, as amended. Closing of the merger is subject to regulatory and stockholder approval, receipt of certain tax opinions and other customary closing conditions.
  3. On February 23, 2017, Time Warner (TWX) said it plans to sell a broadcast station in Atlanta to Meredith (MDP) for $70 million, which could help speed the company’s planned merger with AT&T Inc (T).
  4. On February 23, 2017, Mentor Graphics (MENT) and Siemens Industry, received clearance by the Korea Fair Trade Commission under the Monopoly Regulation and Fair Trade Act to complete the pending acquisition of the Company by Parent pursuant to the Agreement and Plan of Merger.
  5. On February 23, 2017, China National Chemical Corporation extended until April 28 its $43 billion tender offer for Swiss pesticides and seeds group Syngenta (SYT).
  6. On February 23, 2017, Canadian Imperial Bank of Commerce (CM) said that it would be “disciplined” in assessing whether to raise its C$3.8 billion ($2.9 billion) offer for Chicago-based PrivateBancorp (PVTB) and could buy back shares if the deal collapses.
  7. February 23, 2017: The possibility of Gander Mountain’s bankruptcy could derail Cabela’s (CAB) merger with Bass Pro Shops.
  8. On February 24, 2017, at a special meeting, Windstream Holdings (WIN) stockholders approved steps required for the company’s acquisition of EarthLink Holdings (ELNK). The Company anticipates closing the mergers as early as Monday, February 27, 2017.
  9. On February 24, 2017, Qunar Cayman Islands Limited (QUNR) announced that, at an extraordinary general meeting, the Company’s shareholders voted in favor of, among others, the proposal to authorize and approve the previously announced agreement and plan of merger by and among the Company, Ocean Management Holdings Limited and Ocean Management Merger Sub Limited.
  10. February 27, 2017: We have updated the Trina Solar (TSL) deal to take into account the 7 cents ADR delisting fees.

Closed Deals:

  1. The acquisition of Calamos Asset Management (CLMS) by an entity formed by Mr. John Calamos and Mr. John Koudounis on February 21, 2017. It took 64 days for this deal to be completed.
  2. The acquisition of InterOil Corporation (IOC) by Exxon Mobil Corporation (XOM) on February 22, 2017. It took 216 days for this deal to be completed.
  3. The acquisition of Derma Sciences (DSCI) by Integra LifeSciences Holdings Corporation (IART) on February 24, 2017. It took 44 days for this deal to be completed.
  4. The acquisition of Intersil Corporation (ISIL) by Renesas Electronics (RNECF) on February 25, 2017. It took 166 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
CAB 10/03/2016 Bass Pro Shops (N/A) $65.50 $46.58 06/30/2017 40.62% 120.53%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $39.95 03/31/2017 40.18% 458.25%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.05 06/30/2017 34.07% 101.11%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.99 03/31/2017 18.74% 213.77%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $112.96 12/31/2017 13.31% 15.83%
SYT 02/03/2016 ChemChina (N/A) $96.01 $85.27 04/28/2017 12.60% 76.62%
MBVT 10/24/2016 Community Bank System Inc. (CBU) $57.98 $51.90 06/30/2017 11.72% 34.78%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $53.80 06/30/2017 11.52% 34.20%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $97.28 12/31/2017 10.51% 12.49%
TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) $11.60 $10.49 03/31/2017 9.91% 113.08%

List of all pending deals:

  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing
Date
Profit Annu.
Profit
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5.5 billion $65.50 $46.58 726,593 06/30/2017 40.62% 120.53%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $39.95 468,397 03/31/2017 40.18% 458.25%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $4.05 5,020,116 06/30/2017 34.07% 101.11%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.99 898,413 03/31/2017 18.74% 213.77%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $112.96 1,885,877 12/31/2017 13.31% 15.83%
+ SYT 02/03/2016 ChemChina (N/A) All Cash $43 billion $96.01 $85.27 493,219 04/28/2017 12.60% 76.62%
+ MBVT 10/24/2016 Community Bank System Inc. (CBU) All Stock $304 million $57.98 $51.90 5,650 06/30/2017 11.72% 34.78%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $53.80 748,219 06/30/2017 11.52% 34.20%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $97.28 2,487,811 12/31/2017 10.51% 12.49%
+ TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $10.49 4,776,289 03/31/2017 9.91% 113.08%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $6.50 $5.97 8,373,063 07/31/2017 8.88% 21.04%
+ ADGE 11/02/2016 Tecogen Inc. (TGEN) All Stock $20 million $0.36 $0.3315 18,668 06/30/2017 7.96% 23.61%
+ CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $30.94 $28.70 2,420 03/31/2017 7.81% 89.09%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $102.83 2,152,738 12/31/2017 6.97% 8.29%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $61.61 $57.61 2,664,799 09/30/2017 6.95% 11.80%
+ SYUT 11/17/2016 Beams Power Investment Limited (N/A) All Cash N/A $6.05 $5.70 376,090 03/31/2017 6.14% 70.04%
+ INVN 12/21/2016 TDK Corporation (TTDKY) All Cash $1.3 billion $13.00 $12.26 1,028,101 09/30/2017 6.04% 10.25%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $83.28 269,390 06/30/2018 5.97% 4.46%
+ KZ 12/01/2016 Linkedsee Limited and Wiseman International Limited (N/A) All Cash $299 million $7.55 $7.14 16,895 03/31/2017 5.74% 65.50%
+ ELNK 11/07/2016 Windstream Holdings, Inc. (WIN) All Stock $1.1 billion $5.95 $5.63 8,604,877 02/27/2017 5.63% 0.00%
+ SWC 12/09/2016 Sibanye Gold Limited (SBGL) All Cash $2.2 billion $18.00 $17.06 1,578,949 06/30/2017 5.51% 16.35%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $14.87 $14.10 78,906 03/31/2017 5.45% 62.19%
+ HW 11/20/2016 Boral Limited (N/A) All Cash $2.6 billion $24.25 $23.04 492,898 06/30/2017 5.25% 15.58%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $32.77 $31.25 9,896,962 12/31/2017 4.87% 5.79%
+ FBRC 02/21/2017 B. Riley Financial, Inc. (RILY) Cash Plus Stock $160.1 million $19.10 $18.25 60,595 06/30/2017 4.67% 13.85%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $880 million $13.25 $12.77 220,446 12/31/2017 3.76% 4.47%
+ FRP 12/05/2016 Consolidated Communications Holdings, Inc. (CNSL) All Stock $1.5 billion $16.89 $16.30 319,974 06/30/2017 3.63% 10.78%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.65 18,446 12/31/2017 3.56% 4.23%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $28.00 $27.05 103,235 09/30/2017 3.52% 5.97%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.33 10,180,233 10/31/2017 3.41% 5.05%
+ GK 08/16/2016 Cintas Corporation (CTAS) All Cash $2.2 billion $97.50 $94.45 78,464 06/30/2017 3.23% 9.58%
+ RBPAA 01/31/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.25 $4.12 68,880 09/30/2017 3.12% 5.30%
+ FCFP 02/06/2017 First Busey Corporation (BUSE) Cash Plus Stock $235.8 million $13.75 $13.35 45,850 06/30/2017 3.02% 8.95%
+ PCBK 01/10/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $26.24 $25.60 100,289 06/30/2017 2.50% 7.43%
+ CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $32.13 $31.37 244,730 06/30/2017 2.41% 7.17%
+ MJN 02/10/2017 Reckitt Benckiser Group (N/A) All Cash $17.9 billion $90.00 $87.89 2,397,335 09/30/2017 2.40% 4.08%
+ WOOF 01/09/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $90.98 737,235 09/30/2017 2.22% 3.77%
+ LMIA 02/17/2017 Sonaca Group (N/A) All Cash $381.47 million $14.00 $13.71 101,563 06/30/2017 2.12% 6.28%
+ SGM 01/27/2017 Home Point Financial Corporation (N/A) All Cash $211 million $8.00 $7.84 28,980 06/30/2017 2.04% 6.06%
+ MBRG 10/24/2016 Access National Corporation (ANCX) All Stock $233.1 million $36.67 $35.96 14,985 06/30/2017 1.97% 5.83%
+ AWH 12/18/2016 Fairfax Financial Holdings Limited (FFH.TO) Special Conditions $4.9 billion $54.00 $52.96 653,926 06/30/2017 1.96% 5.83%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.20 1,644,792 03/31/2017 1.90% 21.70%
+ OKS 02/01/2017 ONEOK, Inc. (OKE) All Stock $17.2 billion $52.36 $51.53 871,574 06/30/2017 1.62% 4.79%
+ ZLTQ 02/13/2017 Allergan plc (AGN) All Cash $2.475 billion $56.50 $55.62 1,414,074 12/31/2017 1.58% 1.88%
+ CFCB 01/26/2017 Midland States Bancorp, Inc. (MSBI) Special Conditions $175.1 million $26.75 $26.34 2,029 06/30/2017 1.56% 4.62%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.75 629,580 09/30/2017 1.41% 2.39%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $111.45 295,239 03/31/2017 1.39% 15.86%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.97 4,834,266 12/31/2017 1.38% 1.64%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.45 163,384 06/30/2017 1.32% 3.93%
+ CHMT 09/26/2016 LANXESS AG (N/A) All Cash $2.5 billion $33.50 $33.10 190,203 06/30/2017 1.21% 3.59%
+ WNR 11/17/2016 Tesoro Corporation (TSO) All Stock $6.4 billion $38.26 $37.82 728,292 06/30/2017 1.16% 3.44%
+ YDKN 07/21/2016 F.N.B. Corporation (FNB) All Stock $1.4 billion $33.80 $33.42 400,783 03/31/2017 1.15% 13.11%
+ HEOP 12/13/2016 Pacific Premier Bancorp, Inc. (PPBI) All Stock $405.6 million $14.14 $13.99 39,121 06/30/2017 1.10% 3.27%
+ UTEK 02/02/2017 Veeco Instruments Inc. (VECO) Cash Plus Stock $550 million $29.31 $29.01 236,607 06/30/2017 1.02% 3.04%
+ BNCN 01/23/2017 Pinnacle Financial Partners, Inc. (PNFP) All Stock $1.9 billion $36.51 $36.15 111,300 09/30/2017 1.01% 1.71%
+ MPSX 01/24/2017 WestRock Company (WRK) All Cash $2.28 billion $18.00 $17.84 141,705 06/30/2017 0.90% 2.66%
+ MPG 11/03/2016 American Axle & Manufacturing Holdings Inc. (AXL) Cash Plus Stock $3.3 billion $23.34 $23.15 180,635 06/30/2017 0.80% 2.37%
+ GTWN 10/06/2016 Salem Five Bancorp (N/A) All Cash $49.2 million $26.00 $25.80 351 03/31/2017 0.78% 8.84%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.25 914,433 09/30/2017 0.75% 1.28%
+ JPEP 10/24/2016 American Midstream Partners, LP (AMID) All Stock N/A $9.07 $9.00 42,263 03/31/2017 0.74% 8.46%
+ CWEI 01/17/2017 Noble Energy, Inc. (NBL) Cash Plus Stock $3.2 billion $137.27 $136.34 157,973 06/30/2017 0.68% 2.03%
+ LLTC 07/26/2016 Analog Devices, Inc. (ADI) Cash Plus Stock $14.8 billion $64.96 $64.54 1,144,558 06/30/2017 0.65% 1.92%
+ MEP 01/27/2017 Enbridge Inc. (ENB) All Cash $170.2 million $8.00 $7.95 74,127 06/30/2017 0.63% 1.87%
+ MENT 11/14/2016 Siemens AG (N/A) All Cash $4.5 billion $37.25 $37.04 1,149,161 06/30/2017 0.57% 1.68%
+ ETP 11/21/2016 Sunoco Logistics Partners L.P. (SXL) All Stock $19.93 billion $37.91 $37.71 2,019,400 03/31/2017 0.52% 5.90%
+ XXIA 01/30/2017 Keysight Technologies, Inc. (KEYS) All Cash $1.6 billion $19.65 $19.55 695,795 10/31/2017 0.51% 0.76%
+ SCAI 01/09/2017 UnitedHealth Group (UNH) Special Conditions $2.3 billion $57.00 $56.71 473,464 06/30/2017 0.51% 1.52%
+ UAM 11/17/2016 WellCare Health Plans, Inc. (WCG) All Cash $800 million $10.00 $9.95 78,301 06/30/2017 0.50% 1.49%
+ HAR 11/14/2016 Samsung Electronics (N/A) All Cash $8 billion $112.00 $111.44 1,010,040 06/30/2017 0.50% 1.49%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $28.18 541,564 06/30/2017 0.43% 1.26%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.42 338,834 06/30/2017 0.41% 1.22%
+ SCNB 06/27/2016 People's United Financial Inc. (PBCT) All Stock $402 million $42.83 $42.66 22,758 03/31/2017 0.40% 4.58%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $48.35 232,441 03/31/2017 0.37% 4.25%
+ GIG 02/13/2017 Integrated Device Technology, Inc. (IDTI) All Cash $250 million $3.08 $3.07 636,075 06/30/2017 0.33% 0.97%
+ ALJ 01/03/2017 Delek US Holdings, Inc. (DK) All Stock $1.27 billion $11.69 $11.65 507,719 06/30/2017 0.32% 0.96%
+ LIOX 12/12/2016 affiliate of H.I.G.Capital (N/A) All Cash $360 million $5.75 $5.74 234,243 03/31/2017 0.17% 1.99%
+ BATS 09/26/2016 CBOE Holdings, Inc. (CBOE) Cash Plus Stock $3.2 billion $35.51 $35.47 265,044 06/30/2017 0.12% 0.35%
+ CEB 01/05/2017 Gartner, Inc. (IT) Cash Plus Stock $3.3 billion $77.69 $77.60 280,466 06/30/2017 0.11% 0.33%
+ EQY 11/14/2016 Regency Centers Corporation (REG) All Stock $5.6 billion $32.04 $32.00 1,040,881 06/30/2017 0.11% 0.33%
+ ENH 10/05/2016 SOMPO Holdings, Inc (N/A) All Cash $6.3 billion $93.00 $92.90 598,232 03/31/2017 0.11% 1.23%
+ QUNR 10/19/2016 Ocean Management Holdings Limited and Ocean Management Merger Sub Limited (N/A) All Cash $4.44 billion $30.39 $30.36 264,638 06/30/2017 0.10% 0.29%
+ CLC 12/01/2016 Parker-Hannifin Corporation (PH) All Cash $4.3 billion $83.00 $82.98 1,482,232 02/28/2017 0.02% 8.80%
+ CLCD 01/18/2017 Eli Lilly and Company (LLY) All Cash $960 million $46.50 $46.50 59,478 03/31/2017 0.00% 0.00%
+ ACAT 01/25/2017 Textron Inc. (TXT) All Cash $311.71 million $18.50 $18.50 272,439 06/30/2017 0.00% 0.00%
+ SE 09/06/2016 Enbridge Inc. (ENB) All Stock $28 billion $40.68 $40.68 83,625,333 03/31/2017 -0.00% -0.04%
+ PLKI 02/21/2017 Restaurant Brands International Inc. (QSR) All Cash $1.8 billion $79.00 $79.04 822,001 04/15/2017 -0.05% -0.39%
+ CYNO 02/14/2017 Hologic, Inc. (HOLX) All Cash $1.44 billion $66.00 $66.30 1,051,697 04/30/2017 -0.45% -2.66%
+ EVBS 12/13/2016 Southern National Bancorp of Virginia, Inc. (SONA) All Stock $178.3 million $10.72 $10.77 3,158 06/30/2017 -0.47% -1.39%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.80 9,405 12/31/2017 -0.97% -1.16%
+ GNVC 01/24/2017 Intrexon Corporation (XON) All Stock $6.3 million $6.51 $6.58 13,901 06/30/2017 -1.11% -3.28%
+ BEAV 10/23/2016 Rockwell Collins (COL) Special Conditions $8.3 billion $62.00 $63.13 854,297 03/31/2017 -1.79% -20.42%
+ ISLE 09/19/2016 Eldorado Resorts, Inc. (ERI) All Cash $1.7 billion $23.00 $24.24 47,641 06/30/2017 -5.12% -15.18%
+ PVTB 06/29/2016 Canadian Imperial Bank of Commerce (CM) Cash Plus Stock $3.8 billion $51.87 $56.75 591,149 03/31/2017 -8.60% -98.08%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $46.26 $61.50 3,839,574 09/30/2017 -24.78% -42.07%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $4.75 $6.90 36,303 03/31/2017 -31.16% -355.41%

Disclaimer: I hold positions in WhiteWave Foods (WWAV), Rite Aid (RAD), Syngenta (SYT), Valspar (VAL), Trina Solar (TSL) and Fortress Investment Group (FIG). 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.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria

2 Comments

  1. Ajay Mehta
    February 27, 2017 at 2:35 pm

    Love the new features, keep it coming!

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