Merger Arbitrage Mondays – February 6, 2017

Merger Activity decreased last week with four new deals announced and two 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:

New Deals:

1. The acquisition of MoneyGram International (MGI) by Ant Financial Services Group for $880 million or $13.25 per share in cash. This deal was announced the week prior but we missed it and are including it this week instead.
2. The acquisition of Ixia (XXIA) by Keysight Technologies (KEYS) for $1.6 billion or $19.65 per share in cash.
3. The acquisition of Royal Bancshares of Pennsylvania (RBPAA) by Bryn Mawr Bank Corporation (BMTC) for $127.7 million in an all stock deal. Under the terms of the Merger Agreement, Class A shareholders of Royal will receive 0.1025 shares of Bryn Mawr Bank common stock for each share of Royal’s Class A common stock and Class B shareholders of Royal will receive 0.1179 shares of the Bryn Mawr Bank’s common stock for each share of Royal Class B common stock.
4. The acquisition of ONEOK Partners (OKS) by ONEOK (OKE) for $17.2 billion in all stock deal. Under the terms of the agreement, each outstanding common unit of ONEOK Partners that ONEOK does not already own will be converted into 0.985 shares of ONEOK common stock.
5. The acquisition of Ultratech (UTEK) by Veeco Instruments (VECO) for $550 million in a cash plus stock deal. Under the terms of the agreement, Ultratech shareholders will receive (i) $21.75 per share in cash and (ii) 0.2675 of a share of Veeco common stock for each Ultratech common share outstanding.

Deal Updates:

1. On January 26, 2017, LifeLock (LOCK) announced that at a special meeting of stockholders, LifeLock stockholders voted to approve and adopt the previously announced merger agreement with Symantec (SYMC).
2. On January 30, 2017, Walgreens Boots Alliance (WBA) and Rite Aid Corporation (RAD) announced that they have entered into an amendment and extension of their previously announced definitive merger agreement. Under the terms of the amendment, the parties have agreed to reduce the price for each share of Rite Aid common stock to be paid by Walgreens Boots Alliance. The revised price will be a maximum of $7.00 per share and a minimum of $6.50 per share. Additionally, Walgreens Boots Alliance and Rite Aid agreed to extend the end date under the previously announced agreement from 27 January 2017 to 31 July 2017 in order to allow the parties additional time to obtain regulatory approval.
3. On January 30, 2017, The FTC granted early termination of the required waiting period under the HSR Act with respect to the merger agreement between Ariad Pharmaceuticals (ARIA) and Takeda Pharmaceuticals. Accordingly, the Regulatory Condition has been satisfied. The Offer continues to be subject to the remaining conditions set forth in this Offer to Purchase.
4. On January 30, 2017, InterOil Corporation (IOC) urged shareholders to follow the recommendations of leading independent proxy advisory firms, Institutional Shareholder Services , and Glass Lewis & Co., by voting FOR the proposed transaction with Exxon Mobil Corporation (XOM) in connection with the upcoming Special Meeting scheduled for February 14, 2017.
5. On January 31, 2017, LifeLock (LOCK) delivered to Symantec (SYMC) and Acquisition Sub the officer’s certificate contemplated by the Amendment and informed Symantec that it had fulfilled its obligations to provide certain information to Symantec. Also on January 31, 2017, Symantec informed LifeLock that it had not completed its debt financing and, in accordance with the terms of the Amendment, Symantec was electing to extend the Closing. LifeLock currently expects that the Merger will be completed on February 9, 2017.
6. On January 31, 2017, Aetna’s (AET) shares rose slightly after its fourth-quarter earnings call, during which its CEO, Mark Bertolini, said that the company is considering all of its options on the heels of the Department of Justice’s decision to halt its attempted $37 billion acquisition of its peer, Humana (HUM).
7. On January 31, 2017, ProCar Acquisition Corporation, a Delaware corporation and a wholly-owned subsidiary of Eli Lilly and Company (LLY) offered to purchase all of the outstanding shares of common stock of CoLucid Pharmaceuticals (CLCD), at a purchase price of $46.50 per share. The offer and withdrawal rights will expire on February 28, 2017, unless the offer is extended or earlier terminated.
8. On February 1, 2017, Chemtura Corporation (CHMT) announced that at a special meeting of stockholders, Chemtura stockholders voted to approve and adopt the previously announced merger agreement with LANXESS Deutschland.
9. February 2, 2017: According to sources, ChemChina is set to secure conditional EU antitrust approval for its $43 billion bid for Syngenta (SYT).
10. On February 2, 2017, Blue Nile (NILE) stockholders have approved the online jeweler’s $500 million sale to Bain Capital Private Equity and Bow Street.
11. On February 2, 2017, Cigna’s (CI) David Cordani reassured investors that its massive cash pile won’t go unused in the event its mega deal with Anthem is blocked. If the company’s $44 billion deal to be acquired by Anthem (ANTM) is ultimately stopped by the Department of Justice, Cordani said he recognizes a significant responsibility to not allow its capital to remain idle for a long period of time.
12. On February 2, 2017, Textron (TXT) announced it has commenced a tender offer for all of the issued and outstanding shares of common stock of Arctic Cat (ACAT) for $18.50 per share, payable net to the holder in cash, without interest, subject to any withholding of taxes required by applicable law.

Closed Deals:

1. The acquisition of Apollo Education Group (APOL) by a consortium of investors including The Vistria Group, funds affiliated with Apollo Global Management and Najafi Companies on February 1, 2017. It took 359 days for this deal to be completed.
2. The acquisition of American Farmland Company (AFCO) by  Farmland Partners (FPI) on February 2, 2017. It took 143 days for this deal to be completed.

Top 10 deals with largest spreads:

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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