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:

  1. The acquisition of Mobileye (MBLY) by Intel Corporation (INTC) for $14.7 billion or $63.54 per share in cash.
  2. 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.
  3. The acquisition of Air Methods Corporation (AIRM) by American Securities for $2.5 billion or $43.00 per share in cash.

Deal Updates:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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).
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. 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:

  1. 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.
  2. 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:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
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:

  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 $39.14 1,161,849 03/31/2017 43.08% 1429.34%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5.5 billion $65.50 $47.40 637,027 06/30/2017 38.19% 136.64%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $6.50 $4.85 32,241,429 07/31/2017 34.02% 93.36%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $4.16 17,300,935 06/30/2017 30.53% 109.25%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $7.05 980,026 03/31/2017 17.73% 588.33%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $112.76 4,989,273 12/31/2017 13.52% 17.25%
+ MBVT 10/24/2016 Community Bank System Inc. (CBU) All Stock $304 million $55.92 $50.50 33,434 06/30/2017 10.74% 38.42%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $6.75 $6.10 150,661 12/31/2017 10.67% 13.61%
+ ADGE 11/02/2016 Tecogen Inc. (TGEN) All Stock $20 million $0.35 $0.3201 22,520 06/30/2017 10.65% 38.12%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $54.83 982,061 06/30/2017 9.43% 33.74%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $98.56 4,516,421 12/31/2017 9.07% 11.58%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.13 $3.86 799,844 09/30/2017 7.01% 13.20%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $82.57 748,492 06/30/2018 6.88% 5.38%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $103.27 3,095,466 12/31/2017 6.52% 8.32%
+ SYT 02/03/2016 ChemChina (N/A) All Cash $43 billion $93.95 $88.28 881,725 04/28/2017 6.42% 60.11%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.80 3,311,689 12/31/2017 6.25% 7.98%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $60.51 12,650,487 12/31/2017 5.01% 6.39%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $60.29 $57.47 3,614,174 09/30/2017 4.90% 9.22%
+ INVN 12/21/2016 TDK Corporation (TTDKY) All Cash $1.3 billion $13.00 $12.40 1,193,486 09/30/2017 4.84% 9.10%
+ FBRC 02/21/2017 B. Riley Financial, Inc. (RILY) Cash Plus Stock $160.1 million $18.46 $17.75 51,121 06/30/2017 4.02% 14.40%
+ SWC 12/09/2016 Sibanye Gold Limited (SBGL) All Cash $2.2 billion $18.00 $17.36 2,307,755 06/30/2017 3.69% 13.19%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $33.30 $32.20 607,993 12/31/2017 3.40% 4.34%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $27.71 $26.85 119,333 09/30/2017 3.20% 6.01%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.70 32,585 12/31/2017 3.15% 4.02%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $54.58 3,930,047 03/31/2017 3.06% 101.53%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.91 $25.15 524,158 06/30/2017 3.03% 10.85%
+ HW 11/20/2016 Boral Limited (N/A) All Cash $2.6 billion $24.25 $23.54 1,300,442 06/30/2017 3.02% 10.79%
+ CFCB 01/26/2017 Midland States Bancorp, Inc. (MSBI) Special Conditions $175.1 million $26.75 $25.99 12,699 06/30/2017 2.92% 10.46%
+ FRP 12/05/2016 Consolidated Communications Holdings, Inc. (CNSL) All Stock $1.5 billion $17.80 $17.30 147,277 06/30/2017 2.92% 10.44%
+ MJN 02/10/2017 Reckitt Benckiser Group (N/A) All Cash $17.9 billion $90.00 $87.63 2,155,887 09/30/2017 2.70% 5.09%
+ KZ 12/01/2016 Linkedsee Limited and Wiseman International Limited (N/A) All Cash $299 million $7.55 $7.36 321,564 03/31/2017 2.58% 85.66%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.45 3,705,754 10/31/2017 2.41% 3.91%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $15.36 $15.00 227,084 03/31/2017 2.38% 78.81%
+ SGM 01/26/2017 Home Point Financial Corporation (N/A) All Cash $211 million $8.00 $7.85 95,779 06/30/2017 1.91% 6.84%
+ OKS 02/01/2017 ONEOK, Inc. (OKE) All Stock $17.2 billion $52.03 $51.07 1,833,779 06/30/2017 1.88% 6.71%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $91.43 1,107,305,581 09/30/2017 1.72% 3.23%
+ SYUT 11/17/2016 Beams Power Investment Limited (N/A) All Cash N/A $6.05 $5.95 291,726 04/30/2017 1.68% 14.96%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $32.95 724,921 09/30/2017 1.67% 3.14%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.72 852,285 09/30/2017 1.58% 2.97%
+ AWH 12/18/2016 Fairfax Financial Holdings Limited (FFH.TO) Special Conditions $4.9 billion $54.00 $53.22 837,196 06/30/2017 1.47% 5.24%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.97 1,832,707 12/31/2017 1.38% 1.76%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $21.61 $21.32 2,857,904 12/31/2017 1.37% 1.75%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $111.51 1,038,268 03/31/2017 1.34% 44.34%
+ MBRG 10/24/2016 Access National Corporation (ANCX) All Stock $233.1 million $36.04 $35.57 36,386 04/15/2017 1.32% 18.59%
+ LMIA 02/17/2017 Sonaca Group (N/A) All Cash $381.47 million $14.00 $13.82 93,932 06/30/2017 1.30% 4.66%
+ ZLTQ 02/13/2017 Allergan plc (AGN) All Cash $2.475 billion $56.50 $55.88 1,223,208 12/31/2017 1.11% 1.42%
+ WNR 11/17/2016 Tesoro Corporation (TSO) All Stock $6.4 billion $37.12 $36.75 1,484,517 06/30/2017 1.01% 3.63%
+ SCAI 01/09/2017 UnitedHealth Group (UNH) Special Conditions $2.3 billion $57.00 $56.60 368,812 06/30/2017 0.71% 2.53%
+ UTEK 02/02/2017 Veeco Instruments Inc. (VECO) Cash Plus Stock $550 million $29.67 $29.48 329,920 06/30/2017 0.64% 2.28%
+ MEP 01/26/2017 Enbridge Inc. (ENB) All Cash $170.2 million $8.00 $7.95 16,758 06/30/2017 0.63% 2.25%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $48.23 605,956 03/31/2017 0.62% 20.64%
+ MPSX 01/24/2017 WestRock Company (WRK) All Cash $2.28 billion $18.00 $17.89 303,911 06/30/2017 0.61% 2.20%
+ CHMT 09/26/2016 LANXESS AG (N/A) All Cash $2.5 billion $33.50 $33.30 445,399 06/30/2017 0.60% 2.15%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.32 32,240 12/31/2017 0.59% 0.76%
+ GTWN 10/06/2016 Salem Five Bancorp (N/A) All Cash $49.2 million $26.00 $25.85 202 03/31/2017 0.58% 19.25%
+ BNCN 01/23/2017 Pinnacle Financial Partners, Inc. (PNFP) All Stock $1.9 billion $35.94 $35.75 1,246,331 09/30/2017 0.53% 0.99%
+ ETP 11/21/2016 Sunoco Logistics Partners L.P. (SXL) All Stock $19.93 billion $35.76 $35.61 2,580,971 03/31/2017 0.42% 13.98%
+ CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $31.42 $31.29 377,256 06/30/2017 0.41% 1.46%
+ ALJ 01/03/2017 Delek US Holdings, Inc. (DK) All Stock $1.27 billion $12.82 $12.77 1,451,129 06/30/2017 0.41% 1.45%
+ XXIA 01/30/2017 Keysight Technologies, Inc. (KEYS) All Cash $1.6 billion $19.65 $19.575 2,812,729 10/31/2017 0.38% 0.62%
+ MPG 11/03/2016 American Axle & Manufacturing Holdings Inc. (AXL) Cash Plus Stock $3.3 billion $23.69 $23.60 349,550 06/30/2017 0.38% 1.36%
+ HEOP 12/13/2016 Pacific Premier Bancorp, Inc. (PPBI) All Stock $405.6 million $13.85 $13.80 172,466 06/30/2017 0.36% 1.28%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $28.20 1,577,767 06/30/2017 0.35% 1.27%
+ GIG 02/13/2017 Integrated Device Technology, Inc. (IDTI) All Cash $250 million $3.08 $3.07 850,339 06/30/2017 0.33% 1.17%
+ NMBL 03/06/2017 Hewlett Packard Enterprise Company (HPE) All Cash $1.09 billion $12.50 $12.46 13,751,405 04/30/2017 0.32% 2.86%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.44 1,199,471 06/30/2017 0.31% 1.10%
+ UAM 11/17/2016 WellCare Health Plans, Inc. (WCG) All Cash $800 million $10.00 $9.97 548,018 06/30/2017 0.30% 1.08%
+ CEB 01/05/2017 Gartner, Inc. (IT) Cash Plus Stock $3.3 billion $79.46 $79.30 429,835 06/30/2017 0.20% 0.72%
+ SCNB 06/26/2016 People's United Financial Inc. (PBCT) All Stock $402 million $41.87 $41.80 111,372 03/31/2017 0.18% 5.91%
+ ENH 10/05/2016 SOMPO Holdings, Inc (N/A) All Cash $6.3 billion $93.00 $92.84 548,064 03/31/2017 0.17% 5.72%
+ MENT 11/14/2016 Siemens AG (N/A) All Cash $4.5 billion $37.25 $37.24 2,911,761 06/30/2017 0.03% 0.10%
+ PLKI 02/21/2017 Restaurant Brands International Inc. (QSR) All Cash $1.8 billion $79.00 $78.99 574,095 04/15/2017 0.01% 0.18%
+ GK 08/16/2016 Cintas Corporation (CTAS) All Cash $2.2 billion $97.50 $97.50 9,819 03/21/2017 0.00% 0.00%
+ CYNO 02/14/2017 Hologic, Inc. (HOLX) All Cash $1.44 billion $66.00 $66.00 1,306,661 04/30/2017 0.00% 0.00%
+ AIRM 03/14/2017 American Securities LLC (N/A) All Cash $2.5 billion $43.00 $43.00 1,412,678 06/30/2017 0.00% 0.00%
+ CWEI 01/17/2017 Noble Energy, Inc. (NBL) Cash Plus Stock $3.2 billion $129.13 $129.30 605,940 06/30/2017 -0.13% -0.47%
+ FCFP 02/06/2017 First Busey Corporation (BUSE) Cash Plus Stock $235.8 million $13.53 $13.65 178,168 06/30/2017 -0.90% -3.22%
+ SBY 02/27/2017 Tricon Capital Group Inc. (N/A) All Cash $1.4 billion $21.50 $21.70 777,270 06/30/2017 -0.92% -3.30%
+ EVBS 12/13/2016 Southern National Bancorp of Virginia, Inc. (SONA) All Stock $178.3 million $10.55 $10.75 6,153 06/30/2017 -1.87% -6.69%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $27.60 370,973 06/30/2017 -2.90% -10.37%
+ BEAV 10/23/2016 Rockwell Collins (COL) Special Conditions $8.3 billion $62.00 $64.50 867,967 03/31/2017 -3.88% -128.61%
+ GNVC 01/24/2017 Intrexon Corporation (XON) All Stock $6.3 million $6.23 $6.58 48,285 06/30/2017 -5.26% -18.82%
+ PVTB 06/29/2016 Canadian Imperial Bank of Commerce (CM) Cash Plus Stock $3.8 billion $51.05 $58.03 1,063,237 03/31/2017 -12.03% -399.06%
+ ISLE 09/19/2016 Eldorado Resorts, Inc. (ERI) All Cash $1.7 billion $23.00 $26.22 309,157 06/30/2017 -12.28% -43.95%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $880 million $13.25 $16.29 1,532,622 12/31/2017 -18.66% -23.82%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $46.32 $61.74 14,080,216 09/30/2017 -24.97% -46.98%

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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