Merger Arbitrage Mondays – March 6, 2017

Merger activity declined last week with one new deal announced and ten deals closing. You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

We got some positive feedback from subscribers who tried out the new Merger Arbitrage News for Active Deals feature and are working on an enhancement that we feel will make it even more useful. In the meantime, we just finished building another feature that had been requested for some time now and you can check out the beta version of this feature in our new Deals in the Works section. As described on that page,

Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is “seeking strategic alternatives”, ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. 

We would love to hear from you about these new features and if you have any suggestions about improving them.

Deal Statistics:

Total Number of Deals Closed in 2017 36
Total Number of Deals Not Completed in 2017 2
Total Number of Pending Deals
Cash Deals 49
Stock Deals 19
Stock & Cash Deals 12
Special Conditions 6
Total Number of Pending Deals 86
Total Deal Size $640.22 billion

New Deals:

  1. The acquisition of Silver Bay Realty Trust (SBY) by Tricon Capital Group for $1.4 billion or $21.50 per share in cash. (add sec filing)

Deal Updates:

  1. On February 27, 2017, Fortress (FIG) declared a base quarterly cash dividend of $0.09 per Class A share for the fourth quarter of 2016. This dividend is payable on March 21, 2017 to holders of record of Class A shares on March 15, 2017. In connection with the proposed Merger, the company said that they have contractually agreed that they will not pay dividends for the quarterly period ended March 31, 2017 in any amount greater than $0.09 per share, and that they will not pay any dividends with respect to periods ending after that while the Merger Agreement remains in effect. Fortress Class A shareholders should therefore not anticipate receiving a dividend with respect to the quarterly periods ended June 30, 2017 or September 30, 2017, even if the Merger has not yet been consummated at the time of the customary dividend payment dates for such periods.
  2. On February 27, 2017, the new chairman of the Federal Communications Commission said he didn’t expect the agency to have a role in reviewing AT&T (T)’s $85 billion takeover of Time Warner (TWX).
  3. On February 28, 2017, Lattice Semiconductor Corporation (LSCC) announced that its shareholders have approved the adoption of the agreement and plan of merger.
  4. On March 3, 2017, The Committee on Foreign Investment in the United States said that it will extend its scrutiny of a $2.2 billion takeover by South Africa’s Sibanye Gold of the only U.S. miner of platinum and palladium, Stillwater Mining (SWC). The committee, which examines deals for potential U.S. national security concerns, extended the deadline for its review from February 28 to no later than April 14, 2017 which the company said was part of the normal process.
  5. On March 3, 2017, Fairfax Financial Holdings Limited (FFH.TO) and Allied World Assurance Company Holdings (AWH) announced that they have agreed to extend to March 10, 2017 the deadline by which Fairfax has the option to increase the cash consideration, and correspondingly reduce the “Fixed Value Stock Consideration” under the terms of the previously announced definitive merger agreement. In connection with the transaction, Allied World will hold a Special Shareholder Meeting on Wednesday, March 22, 2017.
  6. On March 3, 2017, Multi Packaging Solutions (MPSX) invited its shareholders to attend a special general meeting of shareholders of Multi Packaging Solutions to be held on April 5, 2017.

Closed Deals:

  1. The acquisition of EarthLink Holdings (ELNK) by Windstream Holdings (WIN) on February 27, 2017. It took 112 days for this deal to be completed.
  2. The acquisition of Spectra Energy (SE) by Enbridge (ENB) on February 27, 2017. It took 174 days for this deal to be completed.
  3. The acquisition of CoLucid Pharmaceuticals (CLCD) by Eli Lilly and Company (LLY) on February 28, 2017. It took 41 days for this deal to be completed.
  4. The acquisition of CLARCOR (CLC) by Parker-Hannifin Corporation (PH) on February 28, 2017. It took 89 days for this deal to be completed.
  5. The acquisition of Lionbridge Technologies (LIOX) by an affiliate of H.I.G.Capital on February 28, 2017. It took 78 days for this deal to be completed.
  6. The acquisition of Qunar Cayman Islands Limited (QUNR) by Ocean Management Holdings Limited and Ocean Management Merger Sub Limited on February 28, 2017. It took 132 days for this deal to be completed.
  7. The acquisition of Bats Global Markets (BATS) by CBOE Holdings (CBOE) on February 28, 2017. It took 155 days for this deal to be completed.
  8. The acquisition of WaferGen Bio-systems (WGBS) by Takara Bio USA Holdings on February 28, 2017. It took 291 days for this deal to be completed.
  9. The acquisition of Equity One (EQY) by Regency Centers Corporation (REG) on March 1, 2017. It took 107 days for this deal to be completed.
  10. The acquisition of Carolina Bank Holdings (CLBH) by First Bancorp (FBNC) on March 3, 2017. It took 254 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 $38.14 03/31/2017 46.83% 683.68%
CAB 10/03/2016 Bass Pro Shops (N/A) $65.50 $47.38 06/30/2017 38.24% 120.34%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.05 06/30/2017 34.07% 107.22%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $6.50 $5.45 07/31/2017 19.27% 47.84%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $7.07 03/31/2017 17.40% 254.00%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $114.97 12/31/2017 11.33% 13.79%
MBVT 10/24/2016 Community Bank System Inc. (CBU) $56.64 $51.20 06/30/2017 10.63% 33.45%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $54.97 06/30/2017 9.15% 28.79%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $98.73 12/31/2017 8.88% 10.81%
SYT 02/03/2016 ChemChina (N/A) $93.95 $87.19 04/28/2017 7.75% 53.39%

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 $38.14 235,627 03/31/2017 46.83% 683.68%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5.5 billion $65.50 $47.38 417,586 06/30/2017 38.24% 120.34%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $4.05 3,485,086 06/30/2017 34.07% 107.22%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $6.50 $5.45 36,582,877 07/31/2017 19.27% 47.84%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $7.07 613,932 03/31/2017 17.40% 254.00%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $114.97 1,850,414 12/31/2017 11.33% 13.79%
+ MBVT 10/24/2016 Community Bank System Inc. (CBU) All Stock $304 million $56.64 $51.20 7,382 06/30/2017 10.63% 33.45%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $54.97 658,326 06/30/2017 9.15% 28.79%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $98.73 2,428,393 12/31/2017 8.88% 10.81%
+ SYT 02/03/2016 ChemChina (N/A) All Cash $43 billion $93.95 $87.19 414,881 04/28/2017 7.75% 53.39%
+ TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $10.82 1,260,819 03/31/2017 6.56% 95.80%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $103.86 1,482,301 12/31/2017 5.91% 7.19%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $60.04 $56.84 1,549,672 09/30/2017 5.64% 9.89%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $83.57 207,950 06/30/2018 5.60% 4.25%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $15.76 $14.95 137,752 03/31/2017 5.43% 79.35%
+ SYUT 11/17/2016 Beams Power Investment Limited (N/A) All Cash N/A $6.05 $5.75 82,868 03/31/2017 5.22% 76.17%
+ KZ 12/01/2016 Linkedsee Limited and Wiseman International Limited (N/A) All Cash $299 million $7.55 $7.18 7,819 03/31/2017 5.15% 75.24%
+ INVN 12/21/2016 TDK Corporation (TTDKY) All Cash $1.3 billion $13.00 $12.38 1,164,030 09/30/2017 5.01% 8.79%
+ SWC 12/09/2016 Sibanye Gold Limited (SBGL) All Cash $2.2 billion $18.00 $17.16 2,057,546 06/30/2017 4.90% 15.40%
+ HW 11/20/2016 Boral Limited (N/A) All Cash $2.6 billion $24.25 $23.18 1,119,368 06/30/2017 4.62% 14.52%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $32.76 $31.50 1,259,163 12/31/2017 4.00% 4.87%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $880 million $13.25 $12.75 379,636 12/31/2017 3.92% 4.77%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.65 12,295 12/31/2017 3.56% 4.33%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.35 2,548,662 10/31/2017 3.24% 4.95%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $28.37 $27.50 48,491 09/30/2017 3.17% 5.56%
+ FRP 12/05/2016 Consolidated Communications Holdings, Inc. (CNSL) All Stock $1.5 billion $16.31 $15.85 386,151 06/30/2017 2.89% 9.10%
+ GK 08/16/2016 Cintas Corporation (CTAS) All Cash $2.2 billion $97.50 $94.84 202,796 06/30/2017 2.80% 8.83%
+ RBPAA 01/31/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.21 $4.10 36,911 09/30/2017 2.75% 4.83%
+ FBRC 02/21/2017 B. Riley Financial, Inc. (RILY) Cash Plus Stock $160.1 million $18.46 $18.00 62,856 06/30/2017 2.58% 8.12%
+ CFCB 01/26/2017 Midland States Bancorp, Inc. (MSBI) Special Conditions $175.1 million $26.75 $26.15 93,387 06/30/2017 2.29% 7.22%
+ PCBK 01/10/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.77 $25.20 68,606 06/30/2017 2.27% 7.14%
+ FCFP 02/06/2017 First Busey Corporation (BUSE) Cash Plus Stock $235.8 million $13.49 $13.20 16,205 06/30/2017 2.18% 6.85%
+ MJN 02/10/2017 Reckitt Benckiser Group (N/A) All Cash $17.9 billion $90.00 $88.10 2,504,187 09/30/2017 2.16% 3.78%
+ WOOF 01/09/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $91.09 771,808 09/30/2017 2.10% 3.68%
+ MBRG 10/24/2016 Access National Corporation (ANCX) All Stock $233.1 million $36.13 $35.43 4,247 06/30/2017 1.99% 6.25%
+ SGM 01/27/2017 Home Point Financial Corporation (N/A) All Cash $211 million $8.00 $7.85 37,507 06/30/2017 1.91% 6.01%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.20 941,540 03/31/2017 1.90% 27.77%
+ AWH 12/18/2016 Fairfax Financial Holdings Limited (FFH.TO) Special Conditions $4.9 billion $54.00 $53.02 296,233 06/30/2017 1.85% 5.82%
+ LMIA 02/17/2017 Sonaca Group (N/A) All Cash $381.47 million $14.00 $13.75 102,110 06/30/2017 1.82% 5.72%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.70 1,612,726 09/30/2017 1.69% 2.97%
+ CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $32.09 $31.59 157,557 06/30/2017 1.59% 5.00%
+ OKS 02/01/2017 ONEOK, Inc. (OKE) All Stock $17.2 billion $55.57 $54.74 942,817 06/30/2017 1.52% 4.79%
+ ZLTQ 02/13/2017 Allergan plc (AGN) All Cash $2.475 billion $56.50 $55.68 954,477 12/31/2017 1.47% 1.79%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $111.61 335,682 03/31/2017 1.25% 18.18%
+ CHMT 09/26/2016 LANXESS AG (N/A) All Cash $2.5 billion $33.50 $33.15 557,590 06/30/2017 1.06% 3.32%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $8.00 8,371,644 12/31/2017 1.00% 1.22%
+ MPSX 01/24/2017 WestRock Company (WRK) All Cash $2.28 billion $18.00 $17.83 164,397 06/30/2017 0.95% 3.00%
+ WNR 11/17/2016 Tesoro Corporation (TSO) All Stock $6.4 billion $36.28 $36.02 1,302,520 06/30/2017 0.73% 2.30%
+ LLTC 07/26/2016 Analog Devices, Inc. (ADI) Cash Plus Stock $14.8 billion $65.31 $64.86 1,052,579 06/30/2017 0.69% 2.16%
+ MEP 01/27/2017 Enbridge Inc. (ENB) All Cash $170.2 million $8.00 $7.95 107,298 06/30/2017 0.63% 1.98%
+ CWEI 01/17/2017 Noble Energy, Inc. (NBL) Cash Plus Stock $3.2 billion $137.08 $136.34 105,185 06/30/2017 0.54% 1.70%
+ UTEK 02/02/2017 Veeco Instruments Inc. (VECO) Cash Plus Stock $550 million $29.31 $29.15 220,358 06/30/2017 0.54% 1.69%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $28.15 1,249,268 06/30/2017 0.53% 1.68%
+ SCNB 06/27/2016 People's United Financial Inc. (PBCT) All Stock $402 million $43.05 $42.83 49,032 03/31/2017 0.52% 7.63%
+ ETP 11/21/2016 Sunoco Logistics Partners L.P. (SXL) All Stock $19.93 billion $38.58 $38.38 1,855,543 03/31/2017 0.52% 7.61%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $48.30 619,245 03/31/2017 0.48% 6.95%
+ JPEP 10/24/2016 American Midstream Partners, LP (AMID) All Stock N/A $9.38 $9.34 23,832 03/31/2017 0.48% 6.94%
+ HEOP 12/13/2016 Pacific Premier Bancorp, Inc. (PPBI) All Stock $405.6 million $13.97 $13.91 23,178 06/30/2017 0.44% 1.37%
+ GNVC 01/24/2017 Intrexon Corporation (XON) All Stock $6.3 million $6.81 $6.78 12,984 06/30/2017 0.40% 1.26%
+ UAM 11/17/2016 WellCare Health Plans, Inc. (WCG) All Cash $800 million $10.00 $9.96 150,565 06/30/2017 0.40% 1.26%
+ SCAI 01/09/2017 UnitedHealth Group (UNH) Special Conditions $2.3 billion $57.00 $56.78 982,369 06/30/2017 0.39% 1.22%
+ GTWN 10/06/2016 Salem Five Bancorp (N/A) All Cash $49.2 million $26.00 $25.90 9 03/31/2017 0.39% 5.64%
+ HAR 11/14/2016 Samsung Electronics (N/A) All Cash $8 billion $112.00 $111.57 623,164 06/30/2017 0.39% 1.21%
+ GIG 02/13/2017 Integrated Device Technology, Inc. (IDTI) All Cash $250 million $3.08 $3.07 344,711 06/30/2017 0.33% 1.02%
+ BNCN 01/23/2017 Pinnacle Financial Partners, Inc. (PNFP) All Stock $1.9 billion $36.46 $36.35 207,588 09/30/2017 0.31% 0.54%
+ MENT 11/14/2016 Siemens AG (N/A) All Cash $4.5 billion $37.25 $37.14 2,355,002 06/30/2017 0.30% 0.93%
+ XXIA 01/30/2017 Keysight Technologies, Inc. (KEYS) All Cash $1.6 billion $19.65 $19.60 385,480 10/31/2017 0.26% 0.39%
+ SBY 02/27/2017 Tricon Capital Group Inc. (N/A) All Cash $1.4 billion $21.50 $21.45 2,046,851 06/30/2017 0.23% 0.73%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.46 1,407,158 06/30/2017 0.21% 0.65%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.44 15,569 12/31/2017 0.20% 0.24%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.75 161,366 06/30/2017 0.19% 0.59%
+ ALJ 01/03/2017 Delek US Holdings, Inc. (DK) All Stock $1.27 billion $12.72 $12.70 611,951 06/30/2017 0.13% 0.39%
+ YDKN 07/21/2016 F.N.B. Corporation (FNB) All Stock $1.4 billion $34.17 $34.14 335,729 03/31/2017 0.09% 1.33%
+ MPG 11/03/2016 American Axle & Manufacturing Holdings Inc. (AXL) Cash Plus Stock $3.3 billion $23.72 $23.70 160,642 06/30/2017 0.08% 0.27%
+ ACAT 01/25/2017 Textron Inc. (TXT) All Cash $311.71 million $18.50 $18.49 835,062 06/30/2017 0.05% 0.17%
+ CEB 01/05/2017 Gartner, Inc. (IT) Cash Plus Stock $3.3 billion $77.62 $77.60 688,946 06/30/2017 0.02% 0.08%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.50 632,783 09/30/2017 0.00% 0.00%
+ PLKI 02/21/2017 Restaurant Brands International Inc. (QSR) All Cash $1.8 billion $79.00 $79.00 729,964 04/15/2017 0.00% 0.00%
+ EVBS 12/13/2016 Southern National Bancorp of Virginia, Inc. (SONA) All Stock $178.3 million $10.77 $10.77 6,059 06/30/2017 -0.00% -0.00%
+ ENH 10/05/2016 SOMPO Holdings, Inc (N/A) All Cash $6.3 billion $93.00 $93.01 296,838 03/31/2017 -0.01% -0.16%
+ CYNO 02/14/2017 Hologic, Inc. (HOLX) All Cash $1.44 billion $66.00 $66.10 801,381 04/30/2017 -0.15% -1.00%
+ ADGE 11/02/2016 Tecogen Inc. (TGEN) All Stock $20 million $0.33 $0.3353 14,314 06/30/2017 -2.32% -7.30%
+ BEAV 10/23/2016 Rockwell Collins (COL) Special Conditions $8.3 billion $62.00 $63.75 584,935 03/31/2017 -2.75% -40.08%
+ PVTB 06/29/2016 Canadian Imperial Bank of Commerce (CM) Cash Plus Stock $3.8 billion $51.40 $57.46 141,589 03/31/2017 -10.55% -154.02%
+ ISLE 09/19/2016 Eldorado Resorts, Inc. (ERI) All Cash $1.7 billion $23.00 $25.72 182,217 06/30/2017 -10.58% -33.28%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $46.09 $61.39 4,382,207 09/30/2017 -24.93% -43.75%

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

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