Merger Arbitrage Mondays – March 20, 2017
Merger activity remained unchanged last week with three new deals announced and two deals closing. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
Deals in the Works saw more action and we added eight new deals to this new section that we launched a couple of weeks ago.
Deal Statistics:
| Total Number of Deals Closed in 2017 | 42 |
| Total Number of Deals Not Completed in 2017 | 2 |
| Total Number of Pending Deals |
| Cash Deals | 50 |
| Stock Deals | 19 |
| Stock & Cash Deals | 11 |
| Special Conditions | 6 |
| Total Number of Pending Deals | 86 |
| Total Deal Size | $664.71 billion |
New Deals:
- The acquisition of Mobileye (MBLY) by Intel Corporation (INTC) for $14.7 billion or $63.54 per share in cash.
- The acquisition of Amec Foster Wheeler (AMFW) by John Wood Group (WDGJF) for $4.3 billion in an all stock deal. Under the terms of the agreement, Amec Foster Wheeler shareholders will receive 0.75 New Wood Group Shares for each Amec Foster Wheeler Share.
- The acquisition of Air Methods Corporation (AIRM) by American Securities for $2.5 billion or $43.00 per share in cash.
Deal Updates:
- On March 13, 2017, Synutra International (SYUT) announced that it has called a special meeting of its stockholders, to be held on April 28, 2017. We have extended the closing date for this deal to April 30, 2017.
- On March 13, 2017, Clayton Williams Energy (CWEI) announced that it has established a record date of March 23, 2017, and a meeting date of April 24, 2017, for a special meeting of its stockholders.
- On March 13, 2017, Stonegate Mortgage Corporation (SGM) announced that it has set a date for a special meeting of its stockholders to consider and vote on a proposal to adopt the previously announced merger agreement which provides for the acquisition of Stonegate Mortgage by Home Point Financial Corporation. The special meeting is scheduled to be held on April 27, 2017.
- March 13, 2017: At separate special meetings, shareholders of both Access National Corporation (ANCX) and Middleburg Financial Corporation (MBRG) approved the agreement pursuant to which Access will merge with Middleburg. The parties expect the mergers to close in early April 2017.
- March 15, 2017: Walgreens Boots Alliance (WBA) is trying to secure a deal to sell more locations and assets to Fred’s (FRED) so that it can meet regulatory approval to acquire Rite Aid (RAD).
- On March 14, 2017, G&K Services (GK) received unconditional clearance from the Federal Trade Commission under the HSR Act to proceed with the Merger.
- On March 14, 2017, MoneyGram (MGI), confirmed that it has received an unsolicited proposal from Euronet Worldwide (EEFT) to acquire all of the outstanding shares of MoneyGram Common Stock and Preferred Stock for $15.20 per share in cash on an as-converted basis.
- On March 15, 2017, Neustar (NSR) announced that Neustar stockholders voted to approve the previously announced definitive merger agreement pursuant to which a private investment group led by Golden Gate Capital will acquire Neustar.
- On March 15, 2017, The European Union approved AT&T’s (T) proposed $85 billion purchase of Time Warner (TWX), saying that it raises no competition concerns in Europe.
- On March 16, 2017, CenturyLink (CTL) and Level 3 Communications (LVLT) announced that shareholders of both companies overwhelmingly approved all proposals related to the companies’ merger.
- On March 16, 2017, G&K Services (GK) received the requisite approval from the CCB pursuant to the Competition Act. The Company expects the consummation of the Merger to occur no later than March 21, 2017.
- On March 17, 2017, Ant Financial Services Group said that it is confident of closing a deal for MoneyGram International (MGI), despite a higher bid from a U.S. rival.
Closed Deals:
- The acquisition of Yadkin Financial Corporation (YDKN) by F.N.B. Corporation (FNB) on March 13, 2017. It took 235 days for this deal to be completed.
- The acquisition of Trina Solar (TSL) by an investor consortium comprising Mr. Gao and other entities on March 13, 2017. It took 224 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| ALR | 02/01/2016 | Abbott Laboratories (ABT) | $56.00 | $39.14 | 03/31/2017 | 43.08% | 1429.34% |
| CAB | 10/03/2016 | Bass Pro Shops (N/A) | $65.50 | $47.40 | 06/30/2017 | 38.19% | 136.64% |
| RAD | 10/27/2015 | Walgreens Boots Alliance, Inc. (WBA) | $6.50 | $4.85 | 07/31/2017 | 34.02% | 93.36% |
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.16 | 06/30/2017 | 30.53% | 109.25% |
| LSCC | 11/03/2016 | Canyon Bridge Capital Partners, Inc. (N/A) | $8.30 | $7.05 | 03/31/2017 | 17.73% | 588.33% |
| MON | 09/14/2016 | Bayer AG (BAYRY) | $128.00 | $112.76 | 12/31/2017 | 13.52% | 17.25% |
| MBVT | 10/24/2016 | Community Bank System Inc. (CBU) | $55.92 | $50.50 | 06/30/2017 | 10.74% | 38.42% |
| AMFW | 03/13/2017 | John Wood Group Plc (WG.L) | $6.75 | $6.10 | 12/31/2017 | 10.67% | 13.61% |
| ADGE | 11/02/2016 | Tecogen Inc. (TGEN) | $0.35 | $0.3201 | 06/30/2017 | 10.65% | 38.12% |
| WR | 05/31/2016 | Great Plains Energy Incorporated (GXP) | $60.00 | $54.83 | 06/30/2017 | 9.43% | 33.74% |
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), 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
