Merger Arbitrage Mondays – April 17, 2017

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

There was one new deal announced in the Deals in the Works section. We are pleased to release a new feature called the Deals in the Works Tool that lets you see all the potential deals and see which ones ended up with a definitive merger agreement and which ones were unsuccessful.

Deal Statistics:

Total Number of Deals Closed in 2017 58
Total Number of Deals Not Completed in 2017 2
Total Number of Pending Deals
Cash Deals 53
Stock Deals 18
Stock & Cash Deals 11
Special Conditions 9
Total Number of Pending Deals 91
Total Deal Size $686.59 billion

New Deals:

  1. The acquisition of Intrawest Resorts Holdings (SNOW) by an entity controlled by affiliates of the Aspen Skiing Company and KSL Capital Partners for $1.5 billion or $23.75 per share in cash.
  2. The acquisition of Xcerra Corporation (XCRA) by an affiliate of Sino IC Capital and Unic Capital Management for $439.97 million or $10.25 per share in cash.
  3. The acquisition of Straight Path Communications (STRP) by AT&T (T) for $1.6 billion. Under the terms of the agreement, the stock consideration received by Straight Path shareholders will be based on a variable number of AT&T common stock issued at transaction close to ensure fixed consideration of $95.63 per share.
  4. The acquisition of RetailMeNot (SALE) by Harland Clarke Holdings for $216 million or $11.60 per share in cash.
  5. The acquisition of UCP (UCP) by Century Communities (CCS) for $336 million in a cash plus stock deal. Under the terms of the agreement, each outstanding share of UCP common stock will be converted into the right to receive $5.32 in cash and 0.2309 of a newly issued share of Century common stock.
  6. The acquisition of Anchor Bancorp (ANCB) by Washington Federal (WAFD) for $63.9 million. Under the terms of the merger agreement, each outstanding share of Anchor common stock will be exchanged for shares of Washington Federal, Inc. common stock upon the closing of the transaction. Each share of Anchor common stock was valued at $25.75, which is approximately equal to Anchor’s tangible book value as of December 31, 2016. The exact number of shares to be issued and the exchange ratio will be determined based upon the average of the volume-weighted price of Washington Federal common stock for the twenty trading days ending on the fifth trading day immediately preceding the closing date, subject to a negotiated collar.
  7. The acquisition of Alliance Healthcare Services (AIQ) by Tahoe Investment Group for $682 million or $13.25 per share in cash.
  8. The acquisition of Swift Transportation Company (SWFT) by Knight Transportation (KNX) for $3.24 billion. Under the terms of the definitive agreement each Swift share will convert into 0.72 shares of Knight- Swift by means of a reverse stock split. Each share of Knight will be exchanged for one Knight-Swift share. Based on the $30.65 closing price of Knight shares on April 7, 2017, the last trading day prior to the announcement, the implied value per share of Swift is $22.07. Disclaimer: We normally don’t track mergers of companies that result in the creation of a new entity because of uncertainty around the value of the new company. In this case, because Knight shareholders will receive one share of the new company, we are going to treat this as an acquisition of Swift by Knight in order to figure out the spread on the deal.
  9. The acquisition of Nexvet Biopharma (NVET) by Zoetis (ZTS) for $26.93 million or $6.72 per share in cash.

Deal Updates:

  1. On April 12, 2017, ChemChina and Syngenta (SYT) announced that they have received approval from the Ministry of Commerce of the People’s Republic of China for the proposed acquisition of Syngenta by ChemChina.
  2. On April 12, 2017, Ixia (XXIA) announced that at its special meeting of shareholders, Ixia’s shareholders voted to approve the acquisition of Ixia by Keysight Technologies (KEYS).
  3. On April 13, 2017, ChemChina announced that the tender offers to purchase all publicly held Syngenta (SYT) shares and ADSs will end on 4 May, 2017.
  4. On April 14, 2017, Abbott (ABT) and Alere (ALR) announced that the companies have agreed to amend the existing terms of their agreement for Abbott’s acquisition of Alere. Under the amended terms, Abbott will pay $51 per common share to acquire Alere, for a new expected equity value of approximately $5.3 billion, reduced from the originally expected equity value of approximately $5.8 billion. The transaction is expected to close by the end of the third quarter of 2017. Under the amended terms, the date by which necessary regulatory approvals must be received has been extended to Sept. 30, 2017, from April 30, 2017.
  5. On April 14, 2017, Keysight Technologies (KEYS) and Ixia (XXIA) announced that clearance under the antitrust laws of Russia for the previously announced acquisition of Ixia by Keysight has been received, which follows the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, clearance under the antitrust laws of Germany and Israel and approval of the acquisition by Ixia’s shareholders. Subject to satisfaction of the remaining closing conditions, the companies expect the closing of the acquisition to occur on April 18, 2017.
  6. On April 16, 2017, MoneyGram (MGI) and Ant Financial Services Group announced that the companies have entered into an amendment to the definitive agreement under which MoneyGram will merge with Ant Financial. Pursuant to the amendment, Ant Financial increased the offer price to acquire all of the outstanding shares of MoneyGram from $13.25 per share to $18.00 per share in cash. The MoneyGram board of directors has unanimously approved the Amended Merger Agreement.

Closed Deals:

  1. The acquisition of The WhiteWave Foods Company (WWAV) by Danone on April 12, 2017. It took 279 days for this deal to be completed.
  2. The acquisition of B/E Aerospace (BEAV) by Rockwell Collins (COL) on April 13, 2017. It took 172 days for this deal to be completed.
  3. The acquisition of KongZhong Corporation (KZ) by Linkedsee Limited and Wiseman International Limited on April 13, 2017. It took 133 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
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $6.50 $4.54 07/31/2017 43.17% 150.07%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.00 06/30/2017 35.75% 176.33%
CAB 10/03/2016 Bass Pro Shops (N/A) $65.50 $53.39 06/30/2017 22.68% 111.88%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.78 03/31/2017 22.42% -481.35%
ALR 02/01/2016 Abbott Laboratories (ABT) $51.00 $42.31 09/30/2017 20.54% 45.16%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $53.70 06/30/2017 11.73% 57.87%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $115.77 12/31/2017 10.56% 14.95%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $98.26 12/31/2017 9.40% 13.30%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $16.51 12/31/2017 9.02% 12.77%
GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) $5.10 $4.70 12/31/2017 8.51% 12.04%

List of all pending deals:

  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing
Date
Profit Annu.
Profit
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $6.50 $4.54 11,399,549 07/31/2017 43.17% 150.07%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $4.00 5,561,324 06/30/2017 35.75% 176.33%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5.5 billion $65.50 $53.39 467,573 06/30/2017 22.68% 111.88%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.78 363,212 03/31/2017 22.42% 0.00%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $42.31 727,710 09/30/2017 20.54% 45.16%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $53.70 1,074,377 06/30/2017 11.73% 57.87%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $115.77 1,553,137 12/31/2017 10.56% 14.95%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $98.26 1,792,427 12/31/2017 9.40% 13.30%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $16.51 211,909 12/31/2017 9.02% 12.77%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.70 351,450 12/31/2017 8.51% 12.04%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $82.08 249,250 06/30/2018 7.52% 6.25%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $7.66 $7.13 35,099 12/31/2017 7.46% 10.55%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $45.78 105,446 12/31/2017 7.03% 9.95%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $103.23 2,698,248 12/31/2017 6.56% 9.28%
+ MBVT 10/24/2016 Community Bank System Inc. (CBU) All Stock $304 million $49.75 $46.80 40,638 06/30/2017 6.30% 31.08%
+ CFCB 01/26/2017 Midland States Bancorp, Inc. (MSBI) Special Conditions $175.1 million $26.75 $25.40 15,185 06/30/2017 5.31% 26.22%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.74 2,261,204 12/31/2017 5.24% 7.41%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $62.39 $59.54 3,710,277 09/30/2017 4.78% 10.51%
+ SWC 12/09/2016 Sibanye Gold Limited (SBGL) All Cash $2.2 billion $18.00 $17.23 1,587,010 06/30/2017 4.47% 22.04%
+ STRP 04/10/2017 AT&T Inc. (T) Special Conditions $1.6 billion $95.63 $91.70 331,869 03/31/2018 4.29% 4.50%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $24.70 89,940 09/30/2017 4.25% 9.35%
+ ADGE 11/02/2016 Tecogen Inc. (TGEN) All Stock $20 million $0.34 $0.3249 14,645 06/30/2017 4.20% 20.74%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.60 59,209 12/31/2017 3.97% 5.61%
+ INVN 12/21/2016 TDK Corporation (TTDKY) All Cash $1.3 billion $13.00 $12.52 1,053,699 09/30/2017 3.83% 8.43%
+ FBRC 02/21/2017 B. Riley Financial, Inc. (RILY) Cash Plus Stock $160.1 million $18.50 $17.85 15,909 06/30/2017 3.63% 17.90%
+ SYUT 11/17/2016 Beams Power Investment Limited (N/A) All Cash N/A $6.05 $5.85 102,546 04/30/2017 3.42% 95.99%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $33.78 $32.75 299,301 12/31/2017 3.14% 4.45%
+ AIQ 04/11/2017 Tahoe Investment Group Co., Ltd. (N/A) All Cash $682 million $13.25 $12.85 43,816 09/30/2017 3.11% 6.84%
+ HW 11/20/2016 Boral Limited (N/A) All Cash $2.6 billion $24.25 $23.57 390,303 06/30/2017 2.89% 14.23%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $61.84 2,023,524 12/31/2017 2.75% 3.89%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.41 4,948,380 10/31/2017 2.74% 5.08%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $38.58 $37.65 234,734 12/31/2017 2.48% 3.50%
+ FCFP 02/06/2017 First Busey Corporation (BUSE) Cash Plus Stock $235.8 million $12.46 $12.20 28,809 06/30/2017 2.11% 10.42%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $25.52 $25.00 28,644 09/30/2017 2.09% 4.60%
+ SYT 02/03/2016 ChemChina (N/A) All Cash $43 billion $93.95 $92.13 2,754,208 06/30/2017 1.98% 9.74%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $23.80 $23.35 129,815 06/30/2017 1.94% 9.59%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $91.43 538,628 09/30/2017 1.72% 3.78%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $3.96 $3.89 13,367 09/30/2017 1.71% 3.76%
+ AWH 12/18/2016 Fairfax Financial Holdings Limited (FFH.TO) Special Conditions $4.9 billion $54.00 $53.10 232,929 06/30/2017 1.69% 8.36%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $17.85 41,905 12/31/2017 1.68% 2.38%
+ FRP 12/05/2016 Consolidated Communications Holdings, Inc. (CNSL) All Stock $1.5 billion $17.42 $17.15 165,113 06/30/2017 1.56% 7.70%
+ UCP 04/11/2017 Century Communities, Inc. (CCS) Cash Plus Stock $336 million $11.22 $11.05 91,595 09/30/2017 1.53% 3.37%
+ NVET 04/13/2017 Zoetis Inc. (ZTS) All Cash $26.93 million $6.72 $6.62 1,675,815 12/31/2017 1.51% 2.14%
+ MJN 02/10/2017 Reckitt Benckiser Group (N/A) All Cash $17.9 billion $90.00 $88.67 3,296,740 09/30/2017 1.50% 3.30%
+ NSAT 03/27/2017 Hytera Project Corp. (N/A) All Cash $62 million $10.25 $10.10 768 06/30/2017 1.49% 7.33%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.97 2,548,006 12/31/2017 1.38% 1.95%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $15.44 $15.25 161,161 03/31/2017 1.23% 0.00%
+ LMIA 02/17/2017 Sonaca Group (N/A) All Cash $381.47 million $14.00 $13.83 48,591 06/30/2017 1.23% 6.06%
+ PVTB 06/29/2016 Canadian Imperial Bank of Commerce (CM) Cash Plus Stock $4.9 billion $59.35 $58.65 862,509 06/30/2017 1.19% 5.85%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $22.32 $22.10 4,189,155 09/30/2017 1.00% 2.19%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.83 123,865 09/30/2017 0.95% 2.10%
+ XRA 03/28/2017 Goldcorp Inc. (GG) All Stock $184.45 $1.85 $1.83 402,790 06/30/2017 0.92% 4.53%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.20 456,115 09/30/2017 0.90% 1.99%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.24 19,273 12/31/2017 0.86% 1.22%
+ EVBS 12/13/2016 Southern National Bancorp of Virginia, Inc. (SONA) All Stock $178.3 million $10.53 $10.45 3,600 06/30/2017 0.77% 3.78%
+ OKS 02/01/2017 ONEOK, Inc. (OKE) All Stock $17.2 billion $53.80 $53.42 451,381 06/30/2017 0.71% 3.52%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $48.23 381,173 03/31/2017 0.62% 0.00%
+ ERS 03/31/2017 A unit of Ta Chen Stainless Pipe Co., Ltd. (N/A) All Cash $160.57 million $7.00 $6.96 1,742 06/30/2017 0.57% 2.83%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $112.39 1,766,586 06/21/2017 0.54% 3.05%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $19.56 $19.46 2,165,866 12/31/2017 0.49% 0.70%
+ WNR 11/17/2016 Tesoro Corporation (TSO) All Stock $6.4 billion $34.70 $34.54 745,167 06/30/2017 0.46% 2.28%
+ SALE 04/10/2017 Harland Clarke Holdings Corp. (N/A) All Cash $216 million $11.60 $11.55 1,061,339 06/30/2017 0.43% 2.14%
+ BNCN 01/23/2017 Pinnacle Financial Partners, Inc. (PNFP) All Stock $1.9 billion $31.88 $31.75 298,322 09/30/2017 0.41% 0.91%
+ ETP 11/21/2016 Sunoco Logistics Partners L.P. (SXL) All Stock $19.93 billion $35.70 $35.56 1,769,895 03/31/2017 0.39% 0.00%
+ MPSX 01/24/2017 WestRock Company (WRK) All Cash $2.28 billion $18.00 $17.93 159,031 06/30/2017 0.39% 1.93%
+ UTEK 02/02/2017 Veeco Instruments Inc. (VECO) Cash Plus Stock $550 million $29.08 $28.97 127,294 06/30/2017 0.38% 1.86%
+ SGM 01/26/2017 Home Point Financial Corporation (N/A) All Cash $211 million $8.00 $7.97 5,783 06/30/2017 0.38% 1.86%
+ SNOW 04/10/2017 An entity controlled by affiliates of the Aspen Skiing Compan and KSL Capital Partners (N/A) All Cash $1.5 billion $23.75 $23.67 418,670 09/30/2017 0.34% 0.74%
+ CHMT 09/26/2016 LANXESS AG (N/A) All Cash $2.5 billion $33.50 $33.40 168,066 06/30/2017 0.30% 1.48%
+ ALJ 01/03/2017 Delek US Holdings, Inc. (DK) All Stock $1.27 billion $11.25 $11.22 301,068 06/30/2017 0.26% 1.29%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.45 617,355 06/30/2017 0.26% 1.27%
+ EXAR 03/29/2017 MaxLinear, Inc. (MXL) All Cash $472 million $13.00 $12.97 2,539,333 06/30/2017 0.23% 1.14%
+ UAM 11/17/2016 WellCare Health Plans, Inc. (WCG) All Cash $800 million $10.00 $9.98 126,607 06/30/2017 0.20% 0.99%
+ CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $27.44 $27.39 396,301 04/21/2017 0.19% 17.16%
+ SBY 02/27/2017 Tricon Capital Group Inc. (N/A) All Cash $1.4 billion $21.50 $21.46 300,845 06/30/2017 0.19% 0.92%
+ ZLTQ 02/13/2017 Allergan plc (AGN) All Cash $2.475 billion $56.50 $56.41 1,079,481 12/31/2017 0.16% 0.23%
+ NMBL 03/06/2017 Hewlett Packard Enterprise Company (HPE) All Cash $1.09 billion $12.50 $12.49 3,804,022 04/30/2017 0.08% 2.25%
+ GTWN 10/06/2016 Salem Five Bancorp (N/A) All Cash $49.2 million $26.00 $26.00 45 03/31/2017 0.00% 0.00%
+ XXIA 01/30/2017 Keysight Technologies, Inc. (KEYS) All Cash $1.6 billion $19.65 $19.65 793,665 04/18/2017 0.00% 0.00%
+ TRR 03/31/2017 New Mountain Capital (N/A) All Cash $438 million $17.55 $17.55 262,555 06/30/2017 0.00% 0.00%
+ AIRM 03/14/2017 American Securities LLC (N/A) All Cash $2.5 billion $43.00 $43.05 3,178,517 06/30/2017 -0.12% -0.57%
+ PNRA 04/05/2017 JAB (N/A) All Cash $7.5 billion $315.00 $315.44 663,960 09/30/2017 -0.14% -0.31%
+ ELOS 04/03/2017 Funds advised by Apax Partners (N/A) All Cash $319.66 million $11.00 $11.05 2,364,545 06/30/2017 -0.45% -2.23%
+ MEP 01/26/2017 Enbridge Inc. (ENB) All Cash $170.2 million $8.00 $8.05 1,468,334 06/30/2017 -0.62% -3.06%
+ CWEI 01/17/2017 Noble Energy, Inc. (NBL) Cash Plus Stock $3.2 billion $132.09 $133.60 157,976 06/30/2017 -1.13% -5.59%
+ GNVC 01/24/2017 Intrexon Corporation (XON) All Stock $6.3 million $5.84 $5.92 1,294 06/30/2017 -1.32% -6.50%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $27.50 316,348 06/30/2017 -2.55% -12.56%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $35.59 381,806 06/30/2017 -8.68% -42.82%
+ ISLE 09/19/2016 Eldorado Resorts, Inc. (ERI) All Cash $1.7 billion $23.00 $26.06 120,840 06/30/2017 -11.74% -57.92%
+ INNL 04/04/2017 Gurnet Point L.P. (N/A) Special Conditions $209 million $1.75 $1.995 344,250 06/30/2017 -12.28% -60.57%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $47.12 $63.97 2,301,411 09/30/2017 -26.33% -57.90%

Disclaimer: I hold positions in Rite Aid (RAD), Syngenta (SYT), Fortress Investment Group (FIG) and NXP Semiconductors (NXPI). 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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