Merger Arbitrage Mondays – May 15, 2017

Merger activity decreased 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 75
Total Number of Deals Not Completed in 2017 4
Total Number of Pending Deals
Cash Deals 55
Stock Deals 20
Stock & Cash Deals 13
Special Conditions 9
Total Number of Pending Deals 97
Total Deal Size $762.09 billion

New Deals:

  1. The acquisition of Care Capital Properties (CCP) by Sabra Health Care REIT (SBRA) for $4.07 billion in an all stock deal. Under the terms of the agreement, CCP shareholders will receive 1.123 shares of Sabra common stock for each share of CCP common stock they own.
  2. The acquisition of Kate Spade & Company (KATE) by Coach (COH) for $2.4 billion or $18.50 per share in cash.
  3. The acquisition of VTTI ENERGY PARTNERS (VTTI) by VTTI B.V. for $1.59 billion or $19.50 per share in cash.
  4. The acquisition of Tribune Media Company (TRCO) by Sinclair Broadcast Group (SBGI) for $6.6 billion in a cash plus stock deal. Under the terms of the agreement, Tribune stockholders will receive $35.00 in cash and 0.23 shares of Sinclair Class A common stock for each share of Tribune Class A common stock and Class B common stock they own.
  5. The acquisition of West Corporation (WSTC) by affiliates of certain funds managed by affiliates of Apollo Global Management for $5.1 billion or $23.50 per share in cash.
  6. The acquisition of Straight Path Communications (STRP) by Verizon Communications (VZ) for $3.1 billion or $184.00 per share in cash.
  7. The acquisition of Merus Labs International (MSLI) by Norgine B.V. for $342 million or $1.65 per share in cash. Update: The $1.65 price is in Canadian dollars and based on a conversion rate of 0.73 Canadian Dollar to US Dollar, the closing price is $1.20.

Deal Updates:

  1. On May 8, 2017, Walgreens Boots Alliance (WBA) and Rite Aid Corporation (RAD) announced that they have certified substantial compliance with the Request for Additional Information from the United States Federal Trade Commission regarding their merger agreement under which Walgreens Boots Alliance proposes to acquire all outstanding shares of Rite Aid.
  2. On May 11, 2017, Straight Path Communications (STRP) announced that they have signed a definitive merger agreement under which Verizon Communications (VZ) will acquire Straight Path for $184.00 per share, reflecting an enterprise value of approximately $3.1 billion in an all-stock transaction that is intended to qualify as a tax-free reorganization. Concurrently therewith, Verizon will pay on behalf of Straight Path a termination fee of $38 million to AT&T. The transaction has been approved by the boards of directors of both Straight Path and Verizon.
  3. On May 11, 2017, Salem Five Bancorp and Georgetown Bancorp (GTWN) announced that they expect to close their merger transaction on May 23, 2017.
  4. On May 12, 2017, Cigna Corporation (CI) announced that the merger agreement with Anthem (ANTM) has been terminated. Cigna seeks prompt payment of the $1.85 billion reverse termination fee and will pursue claims for additional damages of over $13 billion against Anthem for the harm that it caused Cigna and its shareholders. In light of Cigna’s refusal to support the merger, however, Anthem has delivered to Cigna a notice terminating the Merger Agreement. Cigna has failed to perform and comply in all material respects with its contractual obligations. As a result, Cigna is not entitled to a termination fee.
  5. On May 12, 2017, Broadcom (AVGO) secured EU antitrust approval for its $5.5 billion bid for Brocade (BRCD) after pledging to cooperate with competitors and to protect their confidential data.
  6. On May 12, 2017, PrivateBancorp (PVTB) announced that its stockholders approved the proposals necessary to complete the acquisition of PrivateBancorp by CIBC (CM).

Closed Deals:

  1. The acquisition of Headwaters Incorporated (HW) by Boral Limited on May 8, 2017. It took 169 days for this deal to be completed.
  2. The acquisition of Empire Resources (ERS) by a unit of Ta Chen Stainless Pipe on May 8, 2017. It took 38 days for this deal to be completed.
  3. The acquisition of Silver Bay Realty Trust (SBY) by Tricon Capital Group on May 9, 2017. It took 71 days for this deal to be completed.
  4. The acquisition of Merchants Bancshares (MBVT) by Community Bank System (CBU) on May 12, 2017. It took 200 days for this deal to be completed.
  5. The acquisition of Exar Corporation (EXAR) by MaxLinear (MXL) on May 12, 2017. It took 44 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 $3.95 07/31/2017 64.56% 306.02%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.68 06/30/2017 47.55% 377.33%
MSLI 05/11/2017 Norgine B.V. (N/A) $1.65 $1.18 09/30/2017 39.83% 105.35%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.90 06/30/2017 20.29% 161.00%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $51.86 06/30/2017 15.70% 124.55%
ADGE 11/02/2016 Tecogen Inc. (TGEN) $0.35 $0.315 06/30/2017 10.89% 86.39%
CAB 10/03/2016 Bass Pro Shops (N/A) $61.50 $55.51 09/30/2017 10.79% 28.54%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $116.22 12/31/2017 10.14% 16.09%
ALR 02/01/2016 Abbott Laboratories (ABT) $51.00 $46.70 09/30/2017 9.21% 24.35%
SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) $49.00 $44.96 12/31/2017 8.99% 14.26%

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 $3.95 9,004,521 07/31/2017 64.56% 306.02%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $3.68 1,790,346 06/30/2017 47.55% 377.33%
+ MSLI 05/11/2017 Norgine B.V. (N/A) All Cash $342 million $1.65 $1.18 288,980 09/30/2017 39.83% 105.35%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.90 680,188 06/30/2017 20.29% 161.00%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $51.86 431,746 06/30/2017 15.70% 124.55%
+ ADGE 11/02/2016 Tecogen Inc. (TGEN) All Stock $20 million $0.35 $0.315 14,741 06/30/2017 10.89% 86.39%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $55.51 365,802 09/30/2017 10.79% 28.54%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $116.22 1,207,764 12/31/2017 10.14% 16.09%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $46.70 10,185,585 09/30/2017 9.21% 24.35%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $44.96 286,006 12/31/2017 8.99% 14.26%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $98.71 1,860,095 12/31/2017 8.90% 14.13%
+ FBRC 02/21/2017 B. Riley Financial, Inc. (RILY) Cash Plus Stock $160.1 million $18.20 $16.90 55,900 06/30/2017 7.67% 60.85%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.75 328,283 12/31/2017 7.37% 11.69%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $7.33 $6.84 30,447 12/31/2017 7.22% 11.46%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $82.62 138,150 06/30/2018 6.81% 6.05%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.70 610,579 12/31/2017 5.67% 9.00%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $61.69 $59.09 3,272,955 09/30/2017 4.39% 11.62%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $43.03 $41.36 8,854,460 12/31/2017 4.03% 6.40%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $32.50 $31.30 339,418 12/31/2017 3.82% 6.06%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.65 6,794 12/31/2017 3.56% 5.65%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $24.90 14,614 09/30/2017 3.41% 9.03%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $61.66 1,459,849 12/31/2017 3.05% 4.84%
+ FCH 04/24/2017 RLJ Lodging Trust (RLJ) All Stock $2.58 billion $7.10 $6.90 2,562,123 12/31/2017 2.93% 4.66%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $106.87 4,860,564 12/31/2017 2.93% 4.65%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $316.66 $307.71 661,067 11/30/2017 2.91% 5.34%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $18.20 $17.70 140,330 06/30/2017 2.82% 22.41%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $17.51 261,199 12/31/2017 2.80% 4.44%
+ AWH 12/18/2016 Fairfax Financial Holdings Limited (FFH.TO) Special Conditions $4.9 billion $54.00 $52.62 374,146 06/30/2017 2.62% 20.81%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $33.15 2,083,346 03/31/2018 2.56% 2.92%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) All Cash $3.1 billion $184.00 $179.68 272,159 03/15/2018 2.40% 2.89%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.35 $4.25 50,150 09/30/2017 2.26% 5.97%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $25.60 $25.05 65,490 09/30/2017 2.20% 5.82%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $38.03 $37.30 112,110 12/31/2017 1.96% 3.11%
+ SAJA 04/26/2017 AMPLEXOR International SA (N/A) All Cash 28.5 million $5.83 $5.72 35,869 07/31/2017 1.92% 9.12%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $29.94 7,974 12/31/2017 1.87% 2.97%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $38.91 $38.20 862,174 12/31/2017 1.86% 2.95%
+ NVET 04/13/2017 Zoetis Inc. (ZTS) All Cash $26.93 million $6.72 $6.61 7,529 12/31/2017 1.66% 2.64%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (N/A) All Cash $5.1 billion $23.50 $23.12 3,115,580 12/31/2017 1.64% 2.61%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $17.92 31,434 12/31/2017 1.28% 2.04%
+ ASBB 05/01/2017 First Bancorp (FBNC) All Stock $175 million $41.62 $41.10 20,865 12/31/2017 1.26% 1.99%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $91.85 264,621 09/30/2017 1.25% 3.31%
+ FCFP 02/06/2017 First Busey Corporation (BUSE) Cash Plus Stock $235.8 million $13.01 $12.85 14,167 06/30/2017 1.23% 9.77%
+ SYT 02/03/2016 ChemChina (N/A) All Cash $43 billion $93.95 $92.81 888,806 06/30/2017 1.23% 9.75%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.10 $24.80 143,424 06/30/2017 1.19% 9.48%
+ MJN 02/10/2017 Reckitt Benckiser Group (N/A) All Cash $17.9 billion $90.00 $88.95 991,499 09/30/2017 1.18% 3.12%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $23.11 $22.85 1,244,931 09/30/2017 1.15% 3.03%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.80 92,401 09/30/2017 1.12% 2.97%
+ FRP 12/05/2016 Consolidated Communications Holdings, Inc. (CNSL) All Stock $1.5 billion $15.07 $14.90 243,861 06/30/2017 1.12% 8.90%
+ FOR 04/13/2017 affiliates of Starwood Capital Group (N/A) All Cash $442.77 million $14.25 $14.10 420,908 09/30/2017 1.06% 2.81%
+ NORD 04/25/2017 Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A) All Cash $4.3 billion $32.50 $32.18 917,207 08/31/2017 0.99% 3.36%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $11.87 $11.75 380,860 12/31/2017 0.98% 1.55%
+ CCP 05/07/2017 Sabra Health Care REIT, Inc. (SBRA) All Stock $4.07 billion $27.31 $27.05 1,249,140 09/30/2017 0.97% 2.56%
+ 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 $23.53 709,224 09/30/2017 0.93% 2.47%
+ ELOS 04/03/2017 Funds advised by Apax Partners (N/A) All Cash $319.66 million $11.00 $10.90 2,765,343 06/30/2017 0.92% 7.28%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.20 597,557 09/30/2017 0.90% 2.39%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $19.73 $19.56 802,387 12/31/2017 0.88% 1.39%
+ AIQ 04/11/2017 Tahoe Investment Group Co., Ltd. (N/A) All Cash $682 million $13.25 $13.15 6,702 09/30/2017 0.76% 2.01%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $52.61 $52.23 2,217 12/31/2017 0.73% 1.16%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.66 4,384,146 10/31/2017 0.71% 1.54%
+ KCG 04/20/2017 Virtu Financial, Inc. (VIRT) All Cash $1.56 billion $20.00 $19.86 328,098 09/30/2017 0.70% 1.86%
+ PNRA 04/05/2017 JAB (N/A) All Cash $7.5 billion $315.00 $312.85 317,485 09/30/2017 0.69% 1.82%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $112.30 449,661 06/21/2017 0.62% 6.15%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $8.03 1,259,597 12/31/2017 0.62% 0.99%
+ OKS 02/01/2017 ONEOK, Inc. (OKE) All Stock $17.2 billion $50.24 $49.94 1,401,562 06/30/2017 0.59% 4.69%
+ GNVC 01/24/2017 Intrexon Corporation (XON) All Stock $6.3 million $7.17 $7.13 52,691 06/30/2017 0.56% 4.40%
+ KATE 05/08/2017 Coach, Inc. (COH) All Cash $2.4 billion $18.50 $18.41 5,724,094 09/30/2017 0.49% 1.29%
+ JIVE 05/01/2017 ESW Capital, LLC (N/A) All Cash $462 million $5.25 $5.225 291,467 06/30/2017 0.48% 3.80%
+ PVTB 06/29/2016 Canadian Imperial Bank of Commerce (CM) Cash Plus Stock $4.9 billion $59.82 $59.56 2,931,577 06/30/2017 0.43% 3.45%
+ SYUT 11/17/2016 Beams Power Investment Limited (N/A) All Cash N/A $6.05 $6.025 124,211 05/31/2017 0.41% 9.47%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $48.33 218,254 06/30/2017 0.41% 3.28%
+ UCP 04/11/2017 Century Communities, Inc. (CCS) Cash Plus Stock $336 million $11.24 $11.20 35,819 09/30/2017 0.38% 1.01%
+ XRA 03/28/2017 Goldcorp Inc. (GG) All Stock $184.45 $1.71 $1.70 161,123 06/30/2017 0.38% 2.99%
+ SGM 01/26/2017 Home Point Financial Corporation (N/A) All Cash $211 million $8.00 $7.97 25,903 06/30/2017 0.38% 2.99%
+ LMIA 02/17/2017 Sonaca Group (N/A) All Cash $381.47 million $14.00 $13.95 35,691 06/30/2017 0.36% 2.84%
+ WNR 11/17/2016 Tesoro Corporation (TSO) All Stock $6.4 billion $35.17 $35.05 718,089 06/30/2017 0.35% 2.81%
+ EVBS 12/13/2016 Southern National Bancorp of Virginia, Inc. (SONA) All Stock $178.3 million $10.63 $10.60 3,994 06/30/2017 0.29% 2.33%
+ TRR 03/31/2017 New Mountain Capital (N/A) All Cash $438 million $17.55 $17.50 196,022 06/30/2017 0.29% 2.27%
+ VTTI 05/08/2017 VTTI B.V. (N/A) All Cash $1.59 billion $19.50 $19.45 759,468 09/30/2017 0.26% 0.68%
+ SALE 04/10/2017 Harland Clarke Holdings Corp. (N/A) All Cash $216 million $11.60 $11.575 548,821 06/30/2017 0.22% 1.71%
+ SPAN 05/01/2017 Savaria Corporation (N/A) All Cash $80.2 million $29.00 $28.94 6,721 06/30/2017 0.21% 1.65%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.46 358,333 06/30/2017 0.21% 1.63%
+ GTWN 10/06/2016 Salem Five Bancorp (N/A) All Cash $49.2 million $26.00 $25.95 7 05/31/2017 0.19% 4.40%
+ INVN 12/21/2016 TDK Corporation (TTDKY) All Cash $1.3 billion $13.00 $12.98 1,068,463 09/30/2017 0.15% 0.41%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $33.20 961,696 09/30/2017 0.15% 0.40%
+ MPSX 01/24/2017 WestRock Company (WRK) All Cash $2.28 billion $18.00 $17.99 80,246 06/30/2017 0.06% 0.44%
+ CFCB 01/26/2017 Midland States Bancorp, Inc. (MSBI) Special Conditions $175.1 million $26.75 $26.75 8,290 06/30/2017 0.00% 0.00%
+ MOCO 04/17/2017 AMETEK, Inc. (AME) All Cash $182 million $30.00 $30.00 33,002 09/30/2017 0.00% 0.00%
+ UTEK 02/02/2017 Veeco Instruments Inc. (VECO) Cash Plus Stock $550 million $30.56 $30.57 458,498 06/30/2017 -0.02% -0.15%
+ BNCN 01/23/2017 Pinnacle Financial Partners, Inc. (PNFP) All Stock $1.9 billion $32.14 $32.15 183,575 09/30/2017 -0.02% -0.06%
+ NSAT 03/27/2017 Hytera Project Corp. (N/A) All Cash $62 million $10.25 $10.30 9,582 06/30/2017 -0.49% -3.85%
+ APFH 04/25/2017 Tyson Foods, Inc. (TSN) All Cash $4.2 billion $40.25 $40.49 1,208,074 07/01/2017 -0.59% -4.60%
+ ALJ 01/03/2017 Delek US Holdings, Inc. (DK) All Stock $1.27 billion $12.45 $12.53 295,559 06/30/2017 -0.65% -5.14%
+ OB 05/02/2017 Intact Financial Corporation (N/A) All Cash $1.7 billion $18.10 $18.26 376,625 12/31/2017 -0.88% -1.39%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $36.07 138,074 06/30/2017 -9.90% -78.53%
+ INNL 04/04/2017 Gurnet Point L.P. (N/A) Special Conditions $209 million $1.75 $2.13 122,536 06/30/2017 -17.84% -141.56%
+ ANGI 05/02/2017 IAC/InterActiveCorp (IAC) Special Conditions $331.67 million $8.50 $11.63 700,637 12/31/2017 -26.91% -42.71%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $47.83 $65.54 3,726,275 09/30/2017 -27.03% -71.49%

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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