Merger Arbitrage Mondays – March 13, 2017

Merger activity increased last week with three new deals announced and four deals closing. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

We are pleased to release an enhancement to our new  Merger Arbitrage News section that displays latest news from various sources as well as latest SEC filings for all active deals. This enhancement adds two new tabs to this page, which displays tweets related to active deals. The “Curated Twitter” tab displays tweets from a list of nearly 2,000 curated Twitter accounts and the “Raw Twitter” tab displays an unfiltered list of tweets related to active deals in the MAT. Subscribers that have logged in can filter the news, SEC filings and tweets for just the companies they are following instead of seeing all news, filings and tweets.

Merger Arbitrage News, SEC Filings and Curated Tweets

Merger Arbitrage News, SEC Filings and Curated Tweets

We have also added two new potential deals to the Deals in the Works section that we launched last week.

Deal Statistics:

Total Number of Deals Closed in 2017 40
Total Number of Deals Not Completed in 2017 2
Total Number of Pending Deals
Cash Deals 49
Stock Deals 19
Stock & Cash Deals 11
Special Conditions 6
Total Number of Pending Deals 85
Total Deal Size $644.81 billion

New Deals:

  1. The acquisition of Nimble Storage (NMBL) by Hewlett Packard Enterprise Company (HPE) for $1.09 billion or $12.50 per share in cash.
  2. The acquisition of Astoria Financial Corporation (AF) by Sterling Bancorp (STL) for $2.2 billion. Under the terms of the agreement, shareholders of Astoria Financial will receive a fixed exchange of 0.875 shares of Sterling common stock for each share of Astoria common stock.
  3. The acquisition of TerraForm Global (GLBL) by Brookfield Asset Management (BAM) for $1.3 billion or $5.10 per share in cash.

Deal Updates:

  1. On March 6, 2017, Analog Devices (ADI) announced that it has received regulatory approval from the Ministry of Commerce of China to complete its acquisition of Linear Technology Corporation (LLTC). MOFCOM clearance was the final required regulatory approval, and the parties expect to complete the acquisition on March 10, 2017.
  2. On March 6, 2017, PrivateBancorp (PVTB) announced that it has set a new record date for its special meeting of stockholders to consider and act upon the Agreement and Plan of Merger by and among PrivateBancorp, Canadian Imperial Bank of Commerce and CIBC Holdco.  The PrivateBancorp special meeting is currently expected to be held on or about May 4, 2017.
  3. On March 6, 2017, Metaldyne Performance Group (MPG) announced that it will hold a special meeting of its stockholders on April 5, 2017.
  4. On March 7, 2017, Integrated Device Technology (IDTI) announced that its wholly-owned subsidiary, Glider Merger Sub, is commencing a cash tender offer to purchase all outstanding shares of common stock of GigPeak (GIG) at an offer price of $3.08 per share.
  5. On March 7, 2017, Qualcomm Incorporated (QCOM) announced that it has extended the offering period of its previously announced cash tender offer to purchase all of the outstanding common shares of NXP Semiconductors (NXPI).  The tender offer is now scheduled to expire on April 4, 2017.
  6. On March 7, 2017, Genworth Financial (GNW) announced that at its stockholders adopted the previously announced merger agreement with China Oceanwide Holdings Group.
  7. On March 9, 2017, Reynolds American (RAI) and British American Tobacco (BTI) announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 relating to BAT’s proposed acquisition of RAI has expired without a request for additional information by the U.S. Department of Justice or the Federal Trade Commission. The expiration of the Act’s waiting period satisfies the transaction closing condition related to U.S. antitrust approval. The transaction still requires approval by RAI and BAT shareholders and regulatory clearance from Japan, and is subject to the satisfaction or waiver of the other closing conditions specified in the merger agreement. Both companies continue to expect the transaction to close in the third quarter of 2017.
  8. On March 9, 2017, B/E Aerospace (BEAV) announced that B/E Aerospace stockholders voted in favor of the proposal to adopt the previously announced Agreement and Plan of Merger by and among B/E Aerospace and Rockwell Collins (COL) at a special meeting of stockholders held on March 9, 2017.
  9. On March 9, 2017, Southwest Bancorp (OKSB) announced that its Annual Meeting of Shareholders will be held on April 25, 2017.
  10. On March 9, 2017, Synutra International (SYUT) announced that its Annual Meeting of Shareholders will be held on April 28, 2017.
  11. March 9, 2017: According to Reuters, Bayer (BAYRY) and Monsanto (MON) are launching asset sales worth roughly $2.5 billion as they seek regulatory clearance for their $66 billion merger, people close to the matter said.
  12. On March 10, 2017, Fairfax Financial Holdings Limited (FFH.TO) and Allied World Assurance Company Holdings (AWH) announced that Fairfax has exercised its option to increase the cash consideration component of its offer to Allied World shareholders by $18.00 out of a possible increase of $30.00 per ordinary share. As a result, the cash consideration component of the offer will increase from $5.00 per ordinary share to $23.00 per ordinary share, together with the $5.00 special dividend that, subject to Allied World shareholder approval, will be payable in connection with the transaction, for total cash consideration of $28.00 per Allied World ordinary share.

Closed Deals:

  1. The acquisition of Arctic Cat (ACAT) by Textron (TXT) on March 6, 2017. It took 40 days for this deal to be completed.
  2. The acquisition of JP Energy Partners (JPEP) by American Midstream Partners (AMID) on March 8, 2017. It took 135 days for this deal to be completed.
  3. The acquisition of Linear Technology Corporation (LLTC) by Analog Devices (ADI) on March 10, 2017. It took 227 days for this deal to be completed.
  4. The acquisition of Harman International Industries (HAR) by Samsung Electronics on March 10, 2017. It took 116 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
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $38.00 03/31/2017 47.37% 960.53%
CAB 10/03/2016 Bass Pro Shops (N/A) $65.50 $46.12 06/30/2017 42.02% 140.71%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $6.50 $4.83 07/31/2017 34.58% 90.14%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.06 06/30/2017 33.74% 113.00%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.95 03/31/2017 19.42% 393.88%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $114.06 12/31/2017 12.22% 15.22%
MBVT 10/24/2016 Community Bank System Inc. (CBU) $55.26 $50.00 06/30/2017 10.51% 35.21%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $54.55 06/30/2017 9.99% 33.46%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $98.60 12/31/2017 9.03% 11.24%
ADGE 11/02/2016 Tecogen Inc. (TGEN) $0.35 $0.3185 06/30/2017 8.90% 29.80%

List of all pending deals:

  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing
Date
Profit Annu.
Profit
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $38.00 1,335,317 03/31/2017 47.37% 960.53%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5.5 billion $65.50 $46.12 210,352 06/30/2017 42.02% 140.71%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $6.50 $4.83 20,974,388 07/31/2017 34.58% 90.14%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $4.06 5,646,767 06/30/2017 33.74% 113.00%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.95 939,094 03/31/2017 19.42% 393.88%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $114.06 1,287,813 12/31/2017 12.22% 15.22%
+ MBVT 10/24/2016 Community Bank System Inc. (CBU) All Stock $304 million $55.26 $50.00 13,092 06/30/2017 10.51% 35.21%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $54.55 412,339 06/30/2017 9.99% 33.46%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $98.60 3,550,893 12/31/2017 9.03% 11.24%
+ ADGE 11/02/2016 Tecogen Inc. (TGEN) All Stock $20 million $0.35 $0.3185 10,183 06/30/2017 8.90% 29.80%
+ SYT 02/03/2016 ChemChina (N/A) All Cash $43 billion $93.95 $87.28 642,775 04/28/2017 7.64% 60.64%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $14.87 $14.05 112,014 03/31/2017 5.83% 118.17%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $83.58 306,047 06/30/2018 5.59% 4.30%
+ SWC 12/09/2016 Sibanye Gold Limited (SBGL) All Cash $2.2 billion $18.00 $17.05 919,604 06/30/2017 5.57% 18.66%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $104.22 107,670 12/31/2017 5.55% 6.91%
+ CFCB 01/26/2017 Midland States Bancorp, Inc. (MSBI) Special Conditions $175.1 million $26.75 $25.35 3,169 06/30/2017 5.52% 18.49%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $59.56 $56.47 1,236,912 09/30/2017 5.47% 9.93%
+ FBRC 02/21/2017 B. Riley Financial, Inc. (RILY) Cash Plus Stock $160.1 million $18.53 $17.60 24,946 06/30/2017 5.29% 17.72%
+ INVN 12/21/2016 TDK Corporation (TTDKY) All Cash $1.3 billion $13.00 $12.38 736,385 09/30/2017 5.01% 9.09%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $880 million $13.25 $12.65 252,203 12/31/2017 4.74% 5.91%
+ KZ 12/01/2016 Linkedsee Limited and Wiseman International Limited (N/A) All Cash $299 million $7.55 $7.26 57,067 03/31/2017 3.99% 81.00%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $33.13 $31.90 947,166 12/31/2017 3.85% 4.79%
+ HW 11/20/2016 Boral Limited (N/A) All Cash $2.6 billion $24.25 $23.36 542,868 06/30/2017 3.81% 12.76%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.65 17,708 12/31/2017 3.56% 4.43%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $27.42 $26.50 24,103 09/30/2017 3.46% 6.27%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.95 1,877,174 12/31/2017 3.03% 3.77%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.39 3,773,896 10/31/2017 2.91% 4.57%
+ FRP 12/05/2016 Consolidated Communications Holdings, Inc. (CNSL) All Stock $1.5 billion $16.81 $16.35 678,794 06/30/2017 2.83% 9.46%
+ GK 08/16/2016 Cintas Corporation (CTAS) All Cash $2.2 billion $97.50 $95.01 97,063 06/30/2017 2.62% 8.78%
+ MJN 02/10/2017 Reckitt Benckiser Group (N/A) All Cash $17.9 billion $90.00 $87.73 2,441,235 09/30/2017 2.59% 4.70%
+ SYUT 11/17/2016 Beams Power Investment Limited (N/A) All Cash N/A $6.05 $5.90 648,790 03/31/2017 2.54% 51.55%
+ RBPAA 01/31/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.07 $3.97 52,683 09/30/2017 2.50% 4.54%
+ PCBK 01/10/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.05 $24.45 212,271 06/30/2017 2.46% 8.24%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $54.94 890,549 03/31/2017 2.38% 48.35%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $21.61 $21.18 3,678,101 12/31/2017 2.04% 2.54%
+ FCFP 02/06/2017 First Busey Corporation (BUSE) Cash Plus Stock $235.8 million $13.16 $12.90 18,156 06/30/2017 2.04% 6.82%
+ WOOF 01/09/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $91.22 554,331 09/30/2017 1.95% 3.54%
+ MBRG 10/24/2016 Access National Corporation (ANCX) All Stock $233.1 million $35.84 $35.19 10,294 06/30/2017 1.85% 6.20%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.70 108,125 09/30/2017 1.69% 3.08%
+ SGM 01/27/2017 Home Point Financial Corporation (N/A) All Cash $211 million $8.00 $7.87 34,836 06/30/2017 1.65% 5.53%
+ AWH 12/18/2016 Fairfax Financial Holdings Limited (FFH.TO) Special Conditions $4.9 billion $54.00 $53.14 511,751 06/30/2017 1.62% 5.42%
+ LMIA 02/17/2017 Sonaca Group (N/A) All Cash $381.47 million $14.00 $13.79 23,090 06/30/2017 1.52% 5.10%
+ OKS 02/01/2017 ONEOK, Inc. (OKE) All Stock $17.2 billion $53.52 $52.76 563,425 06/30/2017 1.43% 4.79%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $111.50 644,695 03/31/2017 1.35% 27.28%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.98 2,739,863 12/31/2017 1.25% 1.56%
+ ZLTQ 02/13/2017 Allergan plc (AGN) All Cash $2.475 billion $56.50 $55.89 754,462 12/31/2017 1.09% 1.36%
+ ALJ 01/03/2017 Delek US Holdings, Inc. (DK) All Stock $1.27 billion $12.05 $11.92 199,861 06/30/2017 1.05% 3.53%
+ CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $30.92 $30.60 199,846 06/30/2017 1.05% 3.51%
+ GNVC 01/24/2017 Intrexon Corporation (XON) All Stock $6.3 million $7.06 $6.99 40,087 06/30/2017 1.04% 3.48%
+ UTEK 02/02/2017 Veeco Instruments Inc. (VECO) Cash Plus Stock $550 million $29.35 $29.10 514,955 06/30/2017 0.85% 2.84%
+ CHMT 09/26/2016 LANXESS AG (N/A) All Cash $2.5 billion $33.50 $33.25 149,305 06/30/2017 0.75% 2.52%
+ MPSX 01/24/2017 WestRock Company (WRK) All Cash $2.28 billion $18.00 $17.87 712,753 06/30/2017 0.73% 2.44%
+ SCAI 01/09/2017 UnitedHealth Group (UNH) Special Conditions $2.3 billion $57.00 $56.62 570,341 06/30/2017 0.67% 2.25%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.30 13,494 12/31/2017 0.66% 0.82%
+ GIG 02/13/2017 Integrated Device Technology, Inc. (IDTI) All Cash $250 million $3.08 $3.06 328,554 06/30/2017 0.65% 2.19%
+ WNR 11/17/2016 Tesoro Corporation (TSO) All Stock $6.4 billion $35.65 $35.42 1,472,100 06/30/2017 0.64% 2.16%
+ MEP 01/27/2017 Enbridge Inc. (ENB) All Cash $170.2 million $8.00 $7.95 171,033 06/30/2017 0.63% 2.11%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.30 407,095 09/30/2017 0.60% 1.09%
+ SCNB 06/27/2016 People's United Financial Inc. (PBCT) All Stock $402 million $42.14 $41.89 54,203 03/31/2017 0.60% 12.17%
+ GTWN 10/06/2016 Salem Five Bancorp (N/A) All Cash $49.2 million $26.00 $25.85 400 03/31/2017 0.58% 11.77%
+ HEOP 12/13/2016 Pacific Premier Bancorp, Inc. (PPBI) All Stock $405.6 million $13.66 $13.58 114,380 06/30/2017 0.58% 1.93%
+ ETP 11/21/2016 Sunoco Logistics Partners L.P. (SXL) All Stock $19.93 billion $36.30 $36.10 1,914,857 03/31/2017 0.55% 11.23%
+ MENT 11/14/2016 Siemens AG (N/A) All Cash $4.5 billion $37.25 $37.06 1,450,552 06/30/2017 0.51% 1.72%
+ XXIA 01/30/2017 Keysight Technologies, Inc. (KEYS) All Cash $1.6 billion $19.65 $19.55 480,082 10/31/2017 0.51% 0.80%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $28.16 2,492,573 06/30/2017 0.50% 1.66%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $48.29 409,957 03/31/2017 0.50% 10.08%
+ UAM 11/17/2016 WellCare Health Plans, Inc. (WCG) All Cash $800 million $10.00 $9.96 337,027 06/30/2017 0.40% 1.34%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.70 120,064 06/30/2017 0.37% 1.25%
+ MPG 11/03/2016 American Axle & Manufacturing Holdings Inc. (AXL) Cash Plus Stock $3.3 billion $23.28 $23.20 148,456 06/30/2017 0.34% 1.15%
+ SBY 02/27/2017 Tricon Capital Group Inc. (N/A) All Cash $1.4 billion $21.50 $21.45 1,023,005 06/30/2017 0.23% 0.78%
+ ENH 10/05/2016 SOMPO Holdings, Inc (N/A) All Cash $6.3 billion $93.00 $92.80 283,252 03/31/2017 0.22% 4.37%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.46 448,107 06/30/2017 0.21% 0.69%
+ YDKN 07/21/2016 F.N.B. Corporation (FNB) All Stock $1.4 billion $34.50 $34.48 1,396,777 03/31/2017 0.04% 0.89%
+ TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $11.53 3,933,518 03/31/2017 0.00% 0.00%
+ PLKI 02/21/2017 Restaurant Brands International Inc. (QSR) All Cash $1.8 billion $79.00 $79.00 253,056 04/15/2017 0.00% 0.00%
+ CWEI 01/17/2017 Noble Energy, Inc. (NBL) Cash Plus Stock $3.2 billion $129.72 $129.72 197,484 06/30/2017 -0.00% -0.01%
+ CYNO 02/14/2017 Hologic, Inc. (HOLX) All Cash $1.44 billion $66.00 $66.05 883,943 04/30/2017 -0.08% -0.58%
+ BNCN 01/23/2017 Pinnacle Financial Partners, Inc. (PNFP) All Stock $1.9 billion $35.44 $35.50 206,989 09/30/2017 -0.17% -0.30%
+ CEB 01/05/2017 Gartner, Inc. (IT) Cash Plus Stock $3.3 billion $78.20 $78.50 238,234 06/30/2017 -0.38% -1.28%
+ NMBL 03/06/2017 Hewlett Packard Enterprise Company (HPE) All Cash $1.09 billion $12.50 $12.56 4,812,099 04/30/2017 -0.48% -3.63%
+ EVBS 12/13/2016 Southern National Bancorp of Virginia, Inc. (SONA) All Stock $178.3 million $10.49 $10.66 4,870 06/30/2017 -1.63% -5.47%
+ BEAV 10/23/2016 Rockwell Collins (COL) Special Conditions $8.3 billion $62.00 $64.08 786,393 03/31/2017 -3.25% -65.82%
+ ISLE 09/19/2016 Eldorado Resorts, Inc. (ERI) All Cash $1.7 billion $23.00 $25.54 196,380 06/30/2017 -9.95% -33.30%
+ PVTB 06/29/2016 Canadian Imperial Bank of Commerce (CM) Cash Plus Stock $3.8 billion $51.21 $57.27 472,752 03/31/2017 -10.58% -214.63%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $45.96 $60.58 5,459,548 09/30/2017 -24.13% -43.82%

Disclaimer: I hold positions in WhiteWave Foods (WWAV), Rite Aid (RAD), Syngenta (SYT), Valspar (VAL) 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

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