Merger Arbitrage Mondays – July 10, 2017

Merger activity decreased last week with six new deals announced, 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 were two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 109
Total Number of Deals Not Completed in 2017 6
Total Number of Pending Deals
Cash Deals 61
Stock Deals 20
Stock & Cash Deals 12
Special Conditions 7
Total Number of Pending Deals 100
Total Deal Size $824.92 billion

New Deals:

  1. The acquisition of Bankrate (RATE) by Red Ventures for $1.4 billion or $14.00 per share in cash.
  2. The acquisition of MRV Communications (MRVC) by ADVA Optical Networking for $50.57 million or $10.00 per share in cash.
  3. The acquisition of NCI (NCIT) by private funds managed by an affiliate of H.I.G. Capital for $190.44 million or $20.00 per share in cash.
  4. The acquisition of Monogram Residential Trust (MORE) by Greystar Growth and Income Fund for $3 billion or $12.00 per share in cash.
  5. The acquisition of HSN (HSNI) by Liberty Interactive Corporation (QVCA) for $2.6 billion in an all stock deal.  Under the terms of the agreement, HSNi shareholders will receive fixed consideration of 1.65 shares of Series A QVC Group common stock for every share of HSNi common stock.
  6. The acquisition of Sparton Corporation (SPA) by Ultra Electronics Holdings for $308.13 million or $23.50 per share in cash.

Deal Updates:

  1. On July 3, 2017, The Federal Trade Commission announced that Broadcom Limited (AVGOhas won U.S. antitrust approval to buy Brocade Communications Systems (BRCD).
  2. On July 3, 2017, Merus Labs International (MSLI) and Norgine B.V. announced that Norgine’s proposed acquisition of all of the issued and outstanding common shares of Merus has been approved by the Spanish anti-trust authority, the Comisión Nacional de los Mercados y la Competencia. Subject to approval of the Arrangement by shareholders, it is anticipated that the Arrangement will be completed on or about July 17, 2017.
  3. On July 3, 2017, The European Commission decided to pause its antitrust review of the merger between Qualcomm (QCOM) and NXP Semiconductors (NXPI), because the regulators need more information from NXP and Qualcomm.
  4. On July 5, 2017, U.S. antitrust regulators ended their investigation into Bass Pro Shops’ $4 billion deal to buy Cabela’s (CAB).
  5. July 7, 2017: The end date for the merger of Gas Natural (EGAS) and First Reserve Energy has been extended to January 7, 2018, as the MPSC’s written order approving the Merger and NCUC’s approval are pending.
  6. On July 7, 2017, Rightside Group (NAME) and Donuts announced that the waiting period was terminated early by the U.S. Federal Trade Commission on July 6, 2017 under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The tender offer is scheduled to expire  on July 26, 2017, unless extended in accordance with applicable SEC rules and the terms of the merger agreement among Donuts and Rightside.
  7. On July 8, 2017, Alere (ALR) announced that its shareholders have voted to approve the previously announced amended merger with Abbott (ABT).

Closed Deals:

  1. The acquisition of Fairpoint Communications (FRP) by Consolidated Communications Holdings (CNSL) on July 3, 2017. It took 210 days for this deal to be completed.
  2. The acquisition of CardConnect (CCN) by First Data Corporation (FDC) on July 6, 2017. It took 38 days for this deal to be completed.
  3. The acquisition of Allied World Assurance Company Holdings (AWH) by Fairfax Financial Holdings Limited (FFH.TO) on July 6, 2017. It took 200 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
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.65 07/31/2017 48.77% 847.62%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.57 09/30/2017 26.33% 117.21%
DEST 12/20/2016 Orchestra-Premaman S.A. (KAZI.PA) $3.90 $3.22 10/31/2017 21.12% 68.22%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $53.13 11/30/2017 12.93% 33.00%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $118.00 12/31/2017 8.47% 17.78%
RICE 06/19/2017 EQT Corporation (EQT) $27.03 $25.28 12/31/2017 6.94% 14.55%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $101.24 12/31/2017 6.18% 12.97%
WGL 01/25/2017 AltaGas Ltd. (N/A) $88.25 $83.40 06/30/2018 5.82% 5.98%
HUN 05/22/2017 CLARIANT N (CLN.VX) $27.83 $26.33 12/31/2017 5.70% 11.96%
SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) $49.00 $46.68 12/31/2017 4.97% 10.43%

List of all pending deals:

  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing
Date
Profit Annu.
Profit
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $3.65 3,032,148 07/31/2017 48.77% 847.62%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.57 397,563 09/30/2017 26.33% 117.21%
+ DEST 12/20/2016 Orchestra-Pr�maman S.A. (KAZI.PA) All Stock $100 million $3.90 $3.22 26,210 10/31/2017 21.13% 68.25%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $53.13 689,626 11/30/2017 12.93% 33.00%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $118.00 1,081,451 12/31/2017 8.47% 17.78%
+ RICE 06/19/2017 EQT Corporation (EQT) Cash Plus Stock $8.2 billion $27.03 $25.28 3,496,622 12/31/2017 6.94% 14.55%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $101.24 3,784,060 12/31/2017 6.18% 12.97%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $83.40 139,769 06/30/2018 5.82% 5.98%
+ HUN 05/22/2017 CLARIANT N (CLN.VX) All Stock $6.72 billion $27.83 $26.33 2,229,245 12/31/2017 5.70% 11.96%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $46.68 23,285 12/31/2017 4.97% 10.43%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.83 279,980 12/31/2017 4.27% 8.96%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $42.56 $40.84 414,505 12/31/2017 4.20% 8.81%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $17.36 434,830 12/31/2017 3.69% 7.73%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.40 $4.25 7,634 09/30/2017 3.46% 15.42%
+ HNH 06/26/2017 Steel Partners Holdings L.P. (SPLP-PA) All Stock $693.48 million $33.39 $32.40 13,459 12/31/2017 3.06% 6.41%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $59.76 830,060 09/30/2017 2.91% 12.96%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $19.66 $19.15 177,818 07/31/2017 2.68% 46.52%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $35.45 $34.53 30,870 12/31/2017 2.67% 5.61%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $32.32 $31.50 74,836 01/15/2018 2.60% 5.02%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $25.1000 5,062 09/30/2017 2.59% 11.53%
+ SCLN 06/08/2017 a consortium consisting of entities affiliated with GL Capital Management GP Limited, Bank of China Group Investment Limited, CDH Investments, Ascendent Capital Partners and Boying (N/A) All Cash $605 million $11.18 $10.90 355,804 12/31/2017 2.57% 5.39%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $6.00 $5.85 55,569 12/31/2017 2.51% 5.26%
+ ASBB 05/01/2017 First Bancorp (FBNC) All Stock $175 million $45.46 $44.45 5,944 12/31/2017 2.27% 4.77%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) All Cash $3.1 billion $184.00 $180.00 76,878 03/15/2018 2.22% 3.27%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $6.85 132,437 12/31/2017 2.19% 4.59%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $60.21 $58.93 2,358,681 09/30/2017 2.18% 9.71%
+ ATW 05/30/2017 Ensco plc (ESV) All Stock $1.7 billion $7.63 $7.47 6,058,465 09/30/2017 2.17% 9.65%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $53.91 $52.90 12,993 12/31/2017 1.90% 3.99%
+ FSBK 06/12/2017 Carolina Financial Corporation (CARO) All Stock $162 million $17.28 $16.97 62,904 12/31/2017 1.82% 3.83%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.11 1,680,448 01/08/2018 1.69% 3.38%
+ SPLS 06/28/2017 Sycamore Partners (N/A) All Cash $6.9 billion $10.25 $10.08 14,628,575 12/31/2017 1.69% 3.54%
+ WBKC 06/14/2017 Horizon Bancorp (HBNC) Cash Plus Stock $88.9 million $40.93 $40.30 24,356 10/31/2017 1.57% 5.08%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $323.35 $318.41 438,684 11/30/2017 1.55% 3.96%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.90 17,215 12/31/2017 1.55% 3.25%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $25.13 $24.75 55,889 01/31/2018 1.53% 2.73%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $12.15 $11.98 205,064 12/31/2017 1.38% 2.89%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $33.55 1,062,929 03/31/2018 1.34% 1.85%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $50.35 982,291 09/30/2017 1.29% 5.75%
+ GSOL 05/23/2017 Expo Holdings I Ltd. (N/A) All Cash N/A $20.00 $19.75 35,562 12/31/2017 1.27% 2.66%
+ CCP 05/07/2017 Sabra Health Care REIT, Inc. (SBRA) All Stock $4.07 billion $26.01 $25.69 1,050,841 09/30/2017 1.24% 5.52%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $36.89 $36.45 73,563 12/31/2017 1.22% 2.56%
+ NSAT 03/27/2017 Hytera Project Corp. (N/A) All Cash $62 million $11.50 $11.375 2,549 09/30/2017 1.10% 4.89%
+ PKY 06/30/2017 Canada Pension Plan Investment Board (N/A) All Cash $1.2 billion $23.05 $22.81 1,902,223 12/31/2017 1.05% 2.21%
+ PRXL 06/20/2017 Pamplona Capital Management, LLP (N/A) All Cash $5 billion $88.10 $87.19 608,950 10/31/2017 1.04% 3.37%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $5.05 433,226 12/31/2017 0.99% 2.08%
+ WMAR 06/29/2017 a wholly owned affiliate of Monomoy Capital Partners (N/A) All Cash $258 million $12.97 $12.845 360,559 09/30/2017 0.97% 4.33%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $26.05 $25.80 51,191 09/30/2017 0.97% 4.31%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $20.69 $20.51 507,953 12/31/2017 0.90% 1.88%
+ UCP 04/11/2017 Century Communities, Inc. (CCS) Cash Plus Stock $336 million $11.20 $11.10 151,659 09/30/2017 0.87% 3.87%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $63.00 2,437,355 12/31/2017 0.86% 1.80%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $33.69 $33.40 388,145 12/31/2017 0.86% 1.80%
+ ARIS 06/21/2017 True Wind Capital Management, LLC (N/A) All Cash $140 million $7.10 $7.04 65,455 09/30/2017 0.85% 3.79%
+ MORE 07/05/2017 Greystar Growth and Income Fund (N/A) All Cash $3 billion $12.00 $11.90 6,770,280 12/31/2017 0.84% 1.76%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $109.11 3,532,524 12/31/2017 0.82% 1.71%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) All Cash $5.1 billion $23.50 $23.31 1,514,530 12/31/2017 0.82% 1.71%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $38.70 $38.40 147,552 12/31/2017 0.78% 1.64%
+ RATE 07/03/2017 Red Ventures (N/A) All Cash $1.4 billion $14.00 $13.90 1,509,467 12/31/2017 0.72% 1.51%
+ DFT 06/09/2017 Digital Realty Trust, Inc. (DLR) All Stock $7.6 billion $60.03 $59.61 468,642 12/31/2017 0.71% 1.48%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.88 97,333 09/30/2017 0.67% 2.99%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $8.03 1,096,146 12/31/2017 0.62% 1.31%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $33.05 270,266 09/30/2017 0.61% 2.69%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $26.75 $26.60 889,793 09/30/2017 0.56% 2.48%
+ MRVC 07/02/2017 ADVA Optical Networking (N/A) All Cash $50.57 million $10.00 $9.95 68,325 09/30/2017 0.50% 2.24%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.69 1,926,106 10/31/2017 0.47% 1.53%
+ ELOS 04/03/2017 Funds advised by Apax Partners (N/A) All Cash $319.66 million $11.00 $10.95 280,213 07/15/2017 0.46% 33.33%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.35 305,150 09/30/2017 0.45% 2.00%
+ NVET 04/13/2017 Zoetis Inc. (ZTS) All Cash $26.93 million $6.72 $6.69 202 12/31/2017 0.45% 0.94%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $92.63 652,225 09/30/2017 0.40% 1.78%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.38 3,566 12/31/2017 0.39% 0.83%
+ PTHN 05/15/2017 Thermo Fisher Scientific Inc. (TMO) All Cash $7.2 billion $35.00 $34.87 269,379 12/31/2017 0.37% 0.78%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $39.73 $39.60 3,276,651 12/31/2017 0.33% 0.70%
+ XTLY 05/30/2017 Vista Equity Partners (N/A) All Cash $354.28 million $15.65 $15.60 194,746 09/30/2017 0.32% 1.43%
+ SPNC 06/28/2017 Philips (PHG) All Cash $2.2 billion $38.50 $38.40 1,306,120 09/30/2017 0.26% 1.16%
+ NCIT 07/03/2017 by private funds managed by an affiliate of H.I.G. Capital, LLC (N/A) All Cash $190.44 million $20.00 $19.95 186,791 09/30/2017 0.25% 1.12%
+ NUTR 05/22/2017 an affiliate of HGGC (N/A) All Cash $446 million $41.80 $41.70 38,127 12/31/2017 0.24% 0.50%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.75 $25.70 108,569 07/31/2017 0.20% 3.53%
+ KCG 04/20/2017 Virtu Financial, Inc. (VIRT) All Cash $1.56 billion $20.00 $19.96 220,614 09/30/2017 0.20% 0.89%
+ SAJA 04/26/2017 AMPLEXOR International SA (N/A) All Cash 28.5 million $5.83 $5.82 N/A 07/31/2017 0.17% 2.99%
+ 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 $23.71 96,227 09/30/2017 0.17% 0.75%
+ AMRI 06/06/2017 affiliates of The Carlyle Group and GTCR LLC (N/A) All Cash $1.49 billion $21.75 $21.72 616,735 09/30/2017 0.14% 0.61%
+ KATE 05/08/2017 Coach, Inc. (COH) All Cash $2.4 billion $18.50 $18.49 858,301 09/30/2017 0.05% 0.24%
+ PNRA 04/05/2017 JAB (N/A) All Cash $7.5 billion $315.00 $314.84 227,395 09/30/2017 0.05% 0.23%
+ AIQ 04/11/2017 Tahoe Investment Group Co., Ltd. (N/A) All Cash $682 million $13.25 $13.25 7,287 09/30/2017 0.00% 0.00%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.10 236,686 12/31/2017 0.00% 0.00%
+ COVS 06/05/2017 Open Text Corporation (OTEX) All Cash $103 million $2.45 $2.45 14,257 09/30/2017 0.00% 0.00%
+ WFM 06/16/2017 Amazon.com, Inc. (AMZN) All Cash $13.7 billion $42.00 $42.00 5,760,918 12/31/2017 0.00% 0.00%
+ NVDQ 06/19/2017 Stryker Corporation (SYK) All Cash $701 million $11.75 $11.75 569,931 09/30/2017 0.00% 0.00%
+ NAME 06/14/2017 Donuts Inc. (N/A) All Cash $213 million $10.60 $10.61 36,922 09/30/2017 -0.09% -0.42%
+ FCH 04/24/2017 RLJ Lodging Trust (RLJ) All Stock $2.58 billion $7.10 $7.11 715,839 12/31/2017 -0.11% -0.22%
+ FPO 06/28/2017 Government Properties Income Trust (GOV) All Cash $1.4 billion $11.15 $11.17 684,159 12/31/2017 -0.18% -0.38%
+ VTTI 05/08/2017 VTTI B.V. (N/A) All Cash $1.59 billion $19.50 $19.60 312,452 09/30/2017 -0.51% -2.27%
+ OB 05/02/2017 Intact Financial Corporation (N/A) All Cash $1.7 billion $18.10 $18.26 98,759 12/31/2017 -0.88% -1.84%
+ NORD 04/25/2017 Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A) All Cash $4.3 billion $32.50 $32.80 335,412 08/31/2017 -0.91% -6.42%
+ ENOC 06/22/2017 Enel Green Power North America, Inc. (N/A) All Cash $300 million $7.67 $7.75 273,984 09/30/2017 -1.03% -4.59%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $18.63 6,205 12/31/2017 -2.58% -5.40%
+ MSLI 05/11/2017 Norgine B.V. (N/A) All Cash $342 million $1.20 $1.28 49,343 07/17/2017 -6.25% -325.89%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $36.37 183,227 07/31/2017 -10.64% -184.94%
+ INNL 04/04/2017 Gurnet Point L.P. (N/A) Special Conditions $209 million $1.75 $2.29 102,486 07/31/2017 -23.58% -409.86%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $47.16 $64.58 4,560,798 09/30/2017 -26.98% -120.10%
+ ANGI 05/02/2017 IAC/InterActiveCorp (IAC) Special Conditions $331.67 million $8.50 $12.77 91,339 12/31/2017 -33.44% -70.14%

Disclaimer: I hold positions in Staples (SPLS), Whole Foods (WFM), Cabela’s (CAB), Rite Aid (RAD) 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.

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