Merger Arbitrage Mondays – May 1, 2017

Merger activity increased last week with seven new deals announced and five 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 were two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 68
Total Number of Deals Not Completed in 2017 3
Total Number of Pending Deals
Cash Deals 52
Stock Deals 19
Stock & Cash Deals 11
Special Conditions 9
Total Number of Pending Deals 91
Total Deal Size $729.14 billion

New Deals:

  1. The acquisition of FelCor Lodging Trust Incorporated (FCH) by RLJ Lodging Trust (RLJ) for $2.5 billion in an all stock deal. Under the terms of the agreement, each share of FelCor common stock will be converted into 0.362 shares of newly issued common shares of RLJ common stock in a taxable merger.
  2. The acquisition of Akorn (AKRX) by Fresenius Kabi for $4.75 billion or $34.00 per share in cash.
  3. The acquisition of Advancepierre Foods Holdings (APFH) by Tyson Foods (TSN) for $4.2 billion or $40.25 per share in cash.
  4. The acquisition of NORD ANGLIA EDUCATION (NORD) by Canada Pension Plan Investment Board and Baring Private Equity Asia for $4.3 billion or $32.50 in cash.
  5. The acquisition of Sajan (SAJA) by AMPLEXOR International for $28.5 million or $5.83 per share in cash.
  6. The acquisition of Park Sterling Corporation (PSTB) by South State Corporation (SSB) for $690.8 million in an all stock deal. Under the terms of the agreement, shareholders of Park Sterling Corporation will receive 0.14 shares of South State common stock for each share of Park Sterling common stock.
  7. The acquisition of Paragon Commercial (PBNC) by TowneBank (TOWN) for $323.7 million in an all stock deal. Under the terms of the agreement, shareholders of Paragon Commercial will receive 1.7250 shares of TowneBank common stock for each outstanding share of Paragon common stock.

Deal Updates:

  1. On April 25, 2017, Straight Path Communications (STRP) announced that the Straight Path Board of Directors determined that an unsolicited offer from a multi-national telecommunications company to acquire 100% of the issued and outstanding shares of Straight Path for $104.64 per share, which will be paid in Bidder stock in an all-stock transaction constitutes a “Superior Proposal” as defined in Straight Path’s previously announced definitive agreement and plan of merger with AT&T (T). Straight Path has notified AT&T of the Straight Path Board’s determination and, pursuant to the AT&T Merger Agreement, AT&T has the option for the next five business days to negotiate a possible amendment of that agreement to match or exceed the Bidder’s offer.
  2. On April 25, 2017, Stillwater Mining Company (SWC) announced that its shareholders adopted the merger agreement with Sibanye Gold Limited at Stillwater’s annual shareholder meeting. In addition, Sibanye announced that its shareholders approved the transaction and the related issuance of shares by Sibanye in a rights offering. Subject to customary closing conditions in accordance with the merger agreement, the merger is expected to close on or about May 4, 2017.
  3. On April 26, 2017, Community Bank System (CBU) and Merchants Bancshares (MBVT) announced that they have received regulatory approvals from the Board of Governors of the Federal Reserve System and Office of the Comptroller of the Currency for their proposed merger. Community Bank System and Merchants also announced that they have set Friday, May 12, 2017 as the closing date for the merger.
  4. April 27, 2017: As of April 26, 2017, Eldorado Resorts (ERI), and Isle of Capri Casinos (ISLE) received all consents and approvals from state gaming commissions necessary to consummate their previously announced merger.  Subject to the satisfaction of customary closing conditions, Eldorado and Isle expect that the merger will close on May 1, 2017.
  5. On April 27, 2017, Stonegate Mortgage Corporation (SGM) announced that its stockholders overwhelmingly approved all proposals relating to the pending acquisition of Stonegate Mortgage by Home Point Financial Corporation at a special meeting of Stonegate Mortgage’s stockholders.
  6. On April 28, 2017, Synutra International (SYUT) announced that at its special meeting of stockholders, the Company’s stockholders voted in favor of the proposal to adopt the previously announced agreement and plan of merger. The parties currently expect to complete the merger in May 2017.
  7. On April 29, 2017, China Oceanwide Holdings Group said that it had refiled its application for U.S. approval of its $2.7 billion acquisition of life insurance company Genworth Financial (GNW), in a bid to add more time to the regulatory review.

Closed Deals:

  1. The acquisition of Clayton Williams Energy (CWEI) by Noble Energy (NBL) on April 25, 2017. It took 98 days for this deal to be completed.
  2. The acquisition of Midcoast Energy Partners (MEP) by Enbridge (ENB) on April 27, 2017. It took 91 days for this deal to be completed.
  3. The acquisition of Universal American (UAM) by WellCare Health Plans (WCG) on April 28, 2017. It took 162 days for this deal to be completed.
  4. The acquisition of Energy Transfer Partners (ETP) by Sunoco Logistics Partners (SXL) on April 28, 2017. It took 158 days for this deal to be completed.
  5. The acquisition of ZELTIQ Aesthetics (ZLTQ) by Allergan (AGN) on April 28, 2017.  It took 74 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 $4.00 07/31/2017 62.50% 250.69%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.04 06/30/2017 34.41% 209.30%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.86 06/30/2017 20.99% 127.70%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $52.03 06/30/2017 15.32% 93.19%
CAB 10/03/2016 Bass Pro Shops (N/A) $61.50 $54.60 09/30/2017 12.64% 30.35%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $116.61 12/31/2017 9.77% 14.61%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $99.27 12/31/2017 8.29% 12.40%
MBVT 10/24/2016 Community Bank System Inc. (CBU) $53.88 $49.80 05/12/2017 8.19% 271.84%
ADGE 11/02/2016 Tecogen Inc. (TGEN) $0.34 $0.3195 06/30/2017 7.69% 46.80%
GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) $5.10 $4.75 12/31/2017 7.37% 11.02%

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 $4.00 15,545,473 07/31/2017 62.50% 250.69%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $4.04 3,873,920 06/30/2017 34.41% 209.30%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.86 484,392 06/30/2017 20.99% 127.70%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $52.03 1,122,259 06/30/2017 15.32% 93.19%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $54.60 586,790 09/30/2017 12.64% 30.35%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $116.61 1,272,842 12/31/2017 9.77% 14.61%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $99.27 4,595,700 12/31/2017 8.29% 12.40%
+ MBVT 10/24/2016 Community Bank System Inc. (CBU) All Stock $304 million $53.88 $49.80 23,118 05/12/2017 8.19% 271.84%
+ ADGE 11/02/2016 Tecogen Inc. (TGEN) All Stock $20 million $0.34 $0.3195 6,844 06/30/2017 7.69% 46.80%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.75 1,493,410,421 12/31/2017 7.37% 11.02%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $82.46 363,758 06/30/2018 7.02% 6.03%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $45.90 3 12/31/2017 6.75% 10.10%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $7.36 $6.93 20,133 12/31/2017 6.16% 9.21%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.50 51,476 12/31/2017 4.80% 7.18%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.80 53 12/31/2017 4.59% 6.87%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $105.75 2,049,704 12/31/2017 4.02% 6.01%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $63.17 $60.76 1,740,792 09/30/2017 3.97% 9.53%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $49.17 1,650,117 09/30/2017 3.72% 8.94%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $317.85 $307.48 1,846,581 11/30/2017 3.37% 5.78%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $18.04 $17.45 208,791 06/30/2017 3.37% 20.48%
+ FBRC 02/21/2017 B. Riley Financial, Inc. (RILY) Cash Plus Stock $160.1 million $18.60 $18.10 6 06/30/2017 2.75% 16.76%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.40 $4.28 81,205 09/30/2017 2.74% 6.58%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $61.92 1,521,959 12/31/2017 2.62% 3.91%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $25.10 17,965 09/30/2017 2.59% 6.22%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $38.22 $37.275 215,437 12/31/2017 2.53% 3.78%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $32.93 $32.20 227,164 12/31/2017 2.28% 3.41%
+ HW 11/20/2016 Boral Limited (N/A) All Cash $2.6 billion $24.25 $23.76 774,728 06/30/2017 2.06% 12.55%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $26.44 $25.95 1,493,410,421 09/30/2017 1.89% 4.53%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $55.98 $54.97 10,623 12/31/2017 1.83% 2.74%
+ NVET 04/13/2017 Zoetis Inc. (ZTS) All Cash $26.93 million $6.72 $6.60 101,111 12/31/2017 1.82% 2.72%
+ AWH 12/18/2016 Fairfax Financial Holdings Limited (FFH.TO) Special Conditions $4.9 billion $54.00 $53.09 810,602 06/30/2017 1.71% 10.43%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $33.45 4,371,901 03/31/2018 1.64% 1.80%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.40 $25.00 3 06/30/2017 1.62% 9.85%
+ SAJA 04/26/2017 AMPLEXOR International SA (N/A) All Cash 28.5 million $5.83 $5.74 175,179 07/31/2017 1.57% 6.29%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $91.57 1,057,249 09/30/2017 1.56% 3.75%
+ UCP 04/11/2017 Century Communities, Inc. (CCS) Cash Plus Stock $336 million $11.62 $11.45 58,207 09/30/2017 1.52% 3.64%
+ MJN 02/10/2017 Reckitt Benckiser Group (N/A) All Cash $17.9 billion $90.00 $88.72 3,612,412 09/30/2017 1.44% 3.46%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.57 2,146,490 10/31/2017 1.43% 2.86%
+ FRP 12/05/2016 Consolidated Communications Holdings, Inc. (CNSL) All Stock $1.5 billion $17.28 $17.05 110,612 06/30/2017 1.34% 8.17%
+ CFCB 01/26/2017 Midland States Bancorp, Inc. (MSBI) Special Conditions $175.1 million $26.75 $26.40 522 06/30/2017 1.33% 8.07%
+ FCFP 02/06/2017 First Busey Corporation (BUSE) Cash Plus Stock $235.8 million $13.21 $13.05 11,289 06/30/2017 1.23% 7.47%
+ AIQ 04/11/2017 Tahoe Investment Group Co., Ltd. (N/A) All Cash $682 million $13.25 $13.10 12,313 09/30/2017 1.15% 2.75%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $17.95 14,934 12/31/2017 1.11% 1.67%
+ INVN 12/21/2016 TDK Corporation (TTDKY) All Cash $1.3 billion $13.00 $12.86 6,843,603 09/30/2017 1.09% 2.61%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $17.81 1,493,410,421 12/31/2017 1.07% 1.60%
+ SYT 02/03/2016 ChemChina (N/A) All Cash $43 billion $93.95 $93.03 1,806,903 06/30/2017 0.99% 6.02%
+ LMIA 02/17/2017 Sonaca Group (N/A) All Cash $381.47 million $14.00 $13.87 15,981 06/30/2017 0.94% 5.70%
+ NORD 04/25/2017 Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A) All Cash $4.3 billion $32.50 $32.20 362,280 08/31/2017 0.93% 2.79%
+ XRA 03/28/2017 Goldcorp Inc. (GG) All Stock $184.45 $1.68 $1.66 883,651 06/30/2017 0.92% 5.57%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.20 1,082,686 09/30/2017 0.90% 2.17%
+ PNRA 04/05/2017 JAB (N/A) All Cash $7.5 billion $315.00 $312.68 609,789 09/30/2017 0.74% 1.78%
+ 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 $23.58 213,142 09/30/2017 0.72% 1.73%
+ FOR 04/13/2017 affiliates of Starwood Capital Group (N/A) All Cash $442.77 million $14.25 $14.15 647,741 09/30/2017 0.71% 1.70%
+ OKS 02/01/2017 ONEOK, Inc. (OKE) All Stock $17.2 billion $51.82 $51.46 407,474 06/30/2017 0.70% 4.27%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.30 9,490 12/31/2017 0.66% 0.99%
+ SGM 01/26/2017 Home Point Financial Corporation (N/A) All Cash $211 million $8.00 $7.95 7,516 06/30/2017 0.63% 3.83%
+ WNR 11/17/2016 Tesoro Corporation (TSO) All Stock $6.4 billion $34.67 $34.49 843,866 06/30/2017 0.53% 3.24%
+ KCG 04/20/2017 Virtu Financial, Inc. (VIRT) All Cash $1.56 billion $20.00 $19.90 1,023,751 09/30/2017 0.50% 1.21%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.91 1,493,410,421 09/30/2017 0.50% 1.21%
+ MOCO 04/17/2017 AMETEK, Inc. (AME) All Cash $182 million $30.00 $29.85 14,750 09/30/2017 0.50% 1.21%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $112.44 457,367 06/21/2017 0.50% 3.56%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $8.04 2,205,893 12/31/2017 0.50% 0.74%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $48.29 603,736 06/30/2017 0.50% 3.02%
+ GTWN 10/06/2016 Salem Five Bancorp (N/A) All Cash $49.2 million $26.00 $25.875 90 06/30/2017 0.48% 2.94%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $24.70 $24.58 2,833,696 09/30/2017 0.47% 1.13%
+ ELOS 04/03/2017 Funds advised by Apax Partners (N/A) All Cash $319.66 million $11.00 $10.95 402,242 06/30/2017 0.46% 2.78%
+ SYUT 11/17/2016 Beams Power Investment Limited (N/A) All Cash N/A $6.05 $6.025 105,529 05/31/2017 0.41% 5.05%
+ FCH 04/24/2017 RLJ Lodging Trust (RLJ) All Stock $2.58 billion $7.78 $7.75 2,720,112 12/31/2017 0.38% 0.57%
+ ALJ 01/03/2017 Delek US Holdings, Inc. (DK) All Stock $1.27 billion $12.13 $12.09 174,977 06/30/2017 0.34% 2.08%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $12.34 $12.30 53 12/31/2017 0.33% 0.50%
+ SBY 02/27/2017 Tricon Capital Group Inc. (N/A) All Cash $1.4 billion $21.50 $21.43 320,912 06/30/2017 0.33% 1.99%
+ PVTB 06/29/2016 Canadian Imperial Bank of Commerce (CM) Cash Plus Stock $4.9 billion $57.95 $57.77 1,493,410,591 06/30/2017 0.32% 1.94%
+ ERS 03/31/2017 A unit of Ta Chen Stainless Pipe Co., Ltd. (N/A) All Cash $160.57 million $7.00 $6.98 6,346 06/30/2017 0.29% 1.74%
+ TRR 03/31/2017 New Mountain Capital (N/A) All Cash $438 million $17.55 $17.50 64,002 06/30/2017 0.29% 1.74%
+ MPSX 01/24/2017 WestRock Company (WRK) All Cash $2.28 billion $18.00 $17.95 177,854 06/30/2017 0.28% 1.69%
+ EVBS 12/13/2016 Southern National Bancorp of Virginia, Inc. (SONA) All Stock $178.3 million $11.50 $11.47 15,089 06/30/2017 0.23% 1.38%
+ UTEK 02/02/2017 Veeco Instruments Inc. (VECO) Cash Plus Stock $550 million $30.58 $30.52 3 06/30/2017 0.19% 1.15%
+ BNCN 01/23/2017 Pinnacle Financial Partners, Inc. (PNFP) All Stock $1.9 billion $33.50 $33.45 109,219 09/30/2017 0.16% 0.39%
+ SWC 12/09/2016 Sibanye Gold Limited (SBGL) All Cash $2.2 billion $18.00 $17.98 6,956,312 05/04/2017 0.11% 13.53%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.50 286,545 06/30/2017 0.00% 0.00%
+ SALE 04/10/2017 Harland Clarke Holdings Corp. (N/A) All Cash $216 million $11.60 $11.60 603 06/30/2017 0.00% 0.00%
+ EXAR 03/29/2017 MaxLinear, Inc. (MXL) All Cash $472 million $13.00 $13.01 1,059,573 06/30/2017 -0.08% -0.47%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $20.34 $20.39 946,266 12/31/2017 -0.23% -0.34%
+ ISLE 09/19/2016 Eldorado Resorts, Inc. (ERI) All Cash $1.7 billion $23.00 $23.06 1,795,337 05/01/2017 -0.26% 0.00%
+ APFH 04/25/2017 Tyson Foods, Inc. (TSN) All Cash $4.2 billion $40.25 $40.62 891,877 07/01/2017 -0.91% -5.45%
+ GNVC 01/24/2017 Intrexon Corporation (XON) All Stock $6.3 million $6.19 $6.31 26,625 06/30/2017 -1.91% -11.62%
+ NSAT 03/27/2017 Hytera Project Corp. (N/A) All Cash $62 million $10.25 $10.875 4,610 06/30/2017 -5.75% -34.96%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $37.44 1,493,411,695 06/30/2017 -13.19% -80.27%
+ INNL 04/04/2017 Gurnet Point L.P. (N/A) Special Conditions $209 million $1.75 $2.06 155,107 06/30/2017 -15.05% -91.55%
+ STRP 04/10/2017 AT&T Inc. (T) Special Conditions $1.6 billion $95.63 $128.86 308,624 03/31/2018 -25.79% -28.18%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $47.33 $64.50 2,309,642 09/30/2017 -26.61% -63.91%

Disclaimer: I hold positions in Cabela’s (CAB), Rite Aid (RAD), 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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