Merger Arbitrage Mondays – July 24, 2017

Merger activity increased last week with five new deals announced, six 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 three new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 116
Total Number of Deals Not Completed in 2017 6
Total Number of Pending Deals
Cash Deals 60
Stock Deals 21
Stock & Cash Deals 13
Special Conditions 6
Total Number of Pending Deals 100
Total Deal Size $822.85 billion

New Deals:

  1. The acquisition of Sevcon (SEV) by BorgWarner for $200 million or $22.00 per share in cash.
  2. The acquisition of Dominion Diamond Corporation (DDC) by The Washington Companies for $1.06 billion or $14.25 per share in cash.
  3. The acquisition of Rocket Fuel (FUEL) by Sizmek for $145 million or $2.6 per share in cash.
  4. The acquisition of Avista Corporation (AVA) by Hydro One Limited for $5.3 billion or $53 per share in cash.
  5. The acquisition of Bank Mutual Corporation (BKMU) by Associated Banc-Corp (ASB) for $482 million in an all stock deal. Under the terms of the agreement, Bank Mutual shareholders will receive 0.422 shares of Associated common stock for each share of Bank Mutual common stock.

Deal Updates:

  1. On July 17, 2017, following discussions with the Committee on Foreign Investment in the United States (CFIUS), Brocade Communications Systems (BRCD) and Broadcom Limited (AVGOagreed to withdraw and re-file their joint voluntary notice to CFIUS under the Defense Production Act of 1950, as amended, to allow more time for review and discussion with CFIUS in connection with the proposed acquisition. Once CFIUS accepts the joint voluntary notice, it will commence a new 30-day review period, which may be followed by a 45-day investigation period.
  2. On July 19, 2017, Reynolds American (RAI) announced that at the company’s special meeting of shareholders today, RAI shareholders approved three proposals related to British American Tobacco (BTI) proposed acquisition of RAI. Subject to the satisfaction or waiver of the remaining conditions set out in the merger agreement, the transaction is expected to close on or about July 25, 2017.
  3. On July 19, 2017, Akorn (AKRX) announced that its shareholders, at a special meeting, have overwhelmingly voted to approve the previously announced merger agreement providing for the acquisition of Akorn by Fresenius Kabi.
  4. July 21, 2017: A group of Democrats in Congress, in a letter this week, urged the Department of Justice and the Federal Trade Commission to conduct a more in-depth review of online retailer Amazon’s (AMZN) plan to buy grocer Whole Foods (WFM).

Closed Deals:

  1. The acquisition of Syneron Medical (ELOS) by funds advised by Apax Partners on July 17, 2017. It took 105 days for this deal to be completed.
  2. The acquisition of Merus Labs International (MSLI) by Norgine B.V. on July 17, 2017. It took 67 days for this deal to be completed.
  3. The acquisition of Panera Bread Company (PNRA) by JAB on July 18, 2017. It took 104 days for this deal to be completed.
  4. The acquisition of Sajan (SAJA) by AMPLEXOR International SA on July 19, 2017. It took 84 days for this deal to be completed.
  5. The acquisition of KCG Holdings (KCG) by Virtu Financial (VIRT) on July 20, 2017. It took 91 days for this deal to be completed.
  6. The acquisition of Norsat International (NSAT) by Hytera Project on July 20, 2017. It took 115 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 $3.50 07/31/2017 55.14% 2875.31%
DEST 12/20/2016 Orchestra-Premaman S.A. (KAZI.PA) $3.83 $2.83 10/31/2017 35.24% 129.91%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.72 09/30/2017 23.51% 126.20%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $117.38 12/31/2017 9.05% 20.64%
ATW 05/30/2017 Ensco plc (ESV) $8.62 $7.92 09/30/2017 8.89% 47.71%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $16.56 12/31/2017 8.70% 19.84%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $99.47 12/31/2017 8.07% 18.42%
HUN 05/22/2017 CLARIANT N (CLN.VX) $28.56 $26.72 12/31/2017 6.90% 15.74%
FCH 04/24/2017 RLJ Lodging Trust (RLJ) $7.62 $7.14 12/31/2017 6.77% 15.45%
AMFW 03/13/2017 John Wood Group Plc (WG.L) $5.97 $5.65 12/31/2017 5.72% 13.06%

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 $3.50 2,835,678 07/31/2017 55.14% 2875.31%
+ DEST 12/20/2016 Orchestra-Pr�maman S.A. (KAZI.PA) All Stock $100 million $3.83 $2.83 18,234 10/31/2017 35.24% 129.91%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.72 607,256 09/30/2017 23.51% 126.20%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $117.38 1,068,826 12/31/2017 9.05% 20.64%
+ ATW 05/30/2017 Ensco plc (ESV) All Stock $1.7 billion $8.62 $7.92 6,939,618 09/30/2017 8.89% 47.71%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $16.56 499,289 12/31/2017 8.70% 19.84%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $99.47 2,247,825 12/31/2017 8.07% 18.42%
+ HUN 05/22/2017 CLARIANT N (CLN.VX) All Stock $6.72 billion $28.56 $26.72 2,717,491 12/31/2017 6.90% 15.74%
+ FCH 04/24/2017 RLJ Lodging Trust (RLJ) All Stock $2.58 billion $7.62 $7.14 3,578,849 12/31/2017 6.77% 15.45%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $5.97 $5.65 29,710 12/31/2017 5.72% 13.06%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $58.27 509,253 09/30/2017 5.54% 29.75%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $46.47 61,517 12/31/2017 5.44% 12.42%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.73 644,644 12/31/2017 5.34% 12.19%
+ RICE 06/19/2017 EQT Corporation (EQT) Cash Plus Stock $8.2 billion $28.59 $27.24 6,669,950 12/31/2017 4.95% 11.29%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $30.55 $29.12 257,882 12/31/2018 4.90% 3.41%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $85.18 454,162 06/30/2018 3.60% 3.86%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $42.94 $41.45 557,580 12/31/2017 3.58% 8.17%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $25.03 $24.30 31,470 01/31/2018 2.99% 5.72%
+ CCP 05/07/2017 Sabra Health Care REIT, Inc. (SBRA) All Stock $4.07 billion $26.33 $25.62 1,113,682 09/30/2017 2.79% 14.97%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $28.87 $28.12 18,643 01/15/2018 2.65% 5.54%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) All Cash $3.1 billion $184.00 $179.50 78,792 03/15/2018 2.51% 3.91%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $6.83 50,844 12/31/2017 2.49% 5.68%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $20.64 $20.15 533,661 07/31/2017 2.42% 126.15%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $53.48 $52.33 18,150 12/31/2017 2.19% 4.99%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $59.89 $58.66 1,066,877 09/30/2017 2.09% 11.22%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $37.67 $36.95 103,346 12/31/2017 1.95% 4.44%
+ FSBK 06/12/2017 Carolina Financial Corporation (CARO) All Stock $162 million $17.61 $17.28 87,809 12/31/2017 1.92% 4.39%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.29 $4.22 8,806 09/30/2017 1.77% 9.51%
+ 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 $11.00 672,019 12/31/2017 1.64% 3.73%
+ SPLS 06/28/2017 Sycamore Partners (N/A) All Cash $6.9 billion $10.25 $10.09 6,292,197 12/31/2017 1.59% 3.62%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $9.85 $9.70 695,443 03/31/2018 1.58% 2.31%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $38.89 $38.30 303,318 12/31/2017 1.55% 3.54%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $327.16 $322.22 405,211 11/30/2017 1.53% 4.34%
+ ASBB 05/01/2017 First Bancorp (FBNC) All Stock $175 million $44.38 $43.75 6,545 12/31/2017 1.44% 3.29%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.1700 75,387 01/08/2018 1.42% 3.09%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $25.40 1,109 09/30/2017 1.38% 7.40%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $52.29 3,020,712 12/31/2018 1.36% 0.94%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $11.65 $11.50 249,517 12/31/2017 1.29% 2.94%
+ DDC 07/17/2017 The Washington Companies (N/A) All Cash $1.06 billion $14.25 $14.07 544,796 12/31/2017 1.28% 2.92%
+ COVS 06/05/2017 Open Text Corporation (OTEX) All Cash $103 million $2.45 $2.42 2,261,466 09/30/2017 1.24% 6.65%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $33.81 $33.40 253,969 12/31/2017 1.23% 2.80%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $33.60 3,516,788 03/31/2018 1.19% 1.74%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $34.67 $34.27 16,665 12/31/2017 1.16% 2.66%
+ SEV 07/17/2017 BorgWarner (N/A) All Cash $200 million $22.00 $21.76 12,791 12/31/2017 1.10% 2.52%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $26.03 $25.75 179,248 09/30/2017 1.09% 5.84%
+ RATE 07/03/2017 Red Ventures (N/A) All Cash $1.4 billion $14.00 $13.85 759,887 12/31/2017 1.08% 2.47%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $50.47 1,029,673 09/30/2017 1.05% 5.64%
+ GSOL 05/23/2017 Expo Holdings I Ltd. (N/A) All Cash N/A $20.00 $19.80 34,531 12/31/2017 1.01% 2.30%
+ MYCC 07/10/2017 Certain Investment Funds Affiliated with Apollo Global Management (N/A) All Cash $1.1 billion $17.12 $16.95 1,550,922 12/31/2017 1.00% 2.29%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $5.05 338,449 12/31/2017 0.99% 2.26%
+ DFT 06/09/2017 Digital Realty Trust, Inc. (DLR) All Stock $7.6 billion $61.29 $60.69 632,230 12/31/2017 0.99% 2.26%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.63 7,806,542 10/28/2017 0.95% 3.61%
+ WMAR 06/29/2017 a wholly owned affiliate of Monomoy Capital Partners (N/A) All Cash $258 million $12.97 $12.85 79,715 09/30/2017 0.93% 5.01%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $32.95 195,089 09/30/2017 0.91% 4.89%
+ UCP 04/11/2017 Century Communities, Inc. (CCS) Cash Plus Stock $336 million $11.30 $11.20 44,659 09/30/2017 0.90% 4.81%
+ WBKC 06/14/2017 Horizon Bancorp (HBNC) Cash Plus Stock $88.9 million $40.66 $40.30 4,086 10/31/2017 0.89% 3.29%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) All Cash $5.1 billion $23.50 $23.32 181,667 12/31/2017 0.77% 1.76%
+ HNH 06/26/2017 Steel Partners Holdings L.P. (SPLP-PA) All Stock $693.48 million $32.80 $32.55 4,044 12/31/2017 0.76% 1.73%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $8.02 320,378 12/31/2017 0.75% 1.71%
+ ARIS 06/21/2017 True Wind Capital Management, LLC (N/A) All Cash $140 million $7.10 $7.05 31,145 09/30/2017 0.71% 3.81%
+ WFM 06/16/2017 Amazon.com, Inc. (AMZN) All Cash $13.7 billion $42.00 $41.71 9,304,342 12/31/2017 0.70% 1.59%
+ PRXL 06/20/2017 Pamplona Capital Management, LLP (N/A) All Cash $5 billion $88.10 $87.50 644,650 10/31/2017 0.69% 2.53%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $92.45 507,680 09/30/2017 0.59% 3.19%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $25.49 $25.34 1,282,677 09/30/2017 0.58% 3.14%
+ MRVC 07/02/2017 ADVA Optical Networking (N/A) All Cash $50.57 million $10.00 $9.95 22,273 09/30/2017 0.50% 2.70%
+ MORE 07/05/2017 Greystar Growth and Income Fund (N/A) All Cash $3 billion $12.00 $11.94 2,485,967 12/31/2017 0.50% 1.15%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.91 77,499 09/30/2017 0.50% 2.70%
+ PKY 06/30/2017 Canada Pension Plan Investment Board (N/A) All Cash $1.2 billion $23.05 $22.94 232,725 12/31/2017 0.48% 1.09%
+ FPO 06/28/2017 Government Properties Income Trust (GOV) All Cash $1.4 billion $11.15 $11.10 721,684 12/31/2017 0.45% 1.03%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.35 747,510 09/30/2017 0.45% 2.41%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $13.05 124,315 12/31/2017 0.38% 0.87%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $63.30 4,154,545 12/31/2017 0.38% 0.86%
+ NUTR 05/22/2017 an affiliate of HGGC (N/A) All Cash $446 million $41.80 $41.65 57,355 12/31/2017 0.36% 0.82%
+ NVDQ 06/19/2017 Stryker Corporation (SYK) All Cash $701 million $11.75 $11.71 931,992 09/30/2017 0.34% 1.83%
+ NEFF 07/14/2017 H&E Equipment Services, Inc. (HEES) All Cash $1.2 billion $21.07 $21.00 126,221 10/31/2017 0.33% 1.23%
+ XTLY 05/30/2017 Vista Equity Partners (N/A) All Cash $354.28 million $15.65 $15.60 140,363 09/30/2017 0.32% 1.72%
+ NVET 04/13/2017 Zoetis Inc. (ZTS) All Cash $26.93 million $6.72 $6.70 1,632 12/31/2017 0.30% 0.68%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $19.64 $19.59 402,917 12/31/2017 0.27% 0.63%
+ 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 $19.95 182,136 09/30/2017 0.25% 1.35%
+ AMRI 06/06/2017 affiliates of The Carlyle Group and GTCR LLC (N/A) All Cash $1.49 billion $21.75 $21.70 520,078 09/30/2017 0.23% 1.24%
+ 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 $23.7100 106,393 09/30/2017 0.17% 0.91%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.19 $25.15 80,463 07/31/2017 0.14% 7.53%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $39.30 $39.25 370,676 12/31/2017 0.14% 0.31%
+ SPNC 06/28/2017 Philips (PHG) All Cash $2.2 billion $38.50 $38.45 727,396 09/30/2017 0.13% 0.70%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $109.86 1,283,601 12/31/2017 0.13% 0.29%
+ PTHN 05/15/2017 Thermo Fisher Scientific Inc. (TMO) All Cash $7.2 billion $35.00 $34.96 78,931 12/31/2017 0.11% 0.26%
+ NAME 06/14/2017 Donuts Inc. (N/A) All Cash $213 million $10.60 $10.60 18,356 09/30/2017 0.00% 0.00%
+ AIQ 04/11/2017 Tahoe Investment Group Co., Ltd. (N/A) All Cash $682 million $13.25 $13.25 44,433 09/30/2017 0.00% 0.00%
+ ENOC 06/22/2017 Enel Green Power North America, Inc. (N/A) All Cash $300 million $7.67 $7.675 189,795 09/30/2017 -0.07% -0.35%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.15 627,591 12/31/2017 -0.16% -0.37%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.62 10,855 12/31/2017 -0.39% -0.89%
+ VTTI 05/08/2017 VTTI B.V. (N/A) All Cash $1.59 billion $19.50 $19.65 230,989 09/30/2017 -0.76% -4.10%
+ OB 05/02/2017 Intact Financial Corporation (N/A) All Cash $1.7 billion $18.10 $18.24 168,179 12/31/2017 -0.77% -1.75%
+ NORD 04/25/2017 Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A) All Cash $4.3 billion $32.50 $33.04 559,935 08/31/2017 -1.63% -15.70%
+ FUEL 07/18/2017 Sizmek Inc. (N/A) All Cash $145 million $2.60 $2.65 804,759 09/30/2017 -1.89% -10.13%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $18.83 9,852 12/31/2017 -3.61% -8.24%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $39.69 998,749 07/31/2017 -18.12% -944.59%
+ INNL 04/04/2017 Gurnet Point L.P. (N/A) Special Conditions $209 million $1.75 $2.35 390,501 07/31/2017 -25.53% -1331.31%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $48.26 $66.89 16,046,483 07/25/2017 -27.86% -10167.15%
+ ANGI 05/02/2017 IAC/InterActiveCorp (IAC) Special Conditions $331.67 million $8.50 $12.52 129,115 12/31/2017 -32.11% -73.25%

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