Merger Arbitrage Mondays – July 31, 2017

Merger activity increased last week with six new deals announced, four 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.

Deal Statistics:

Total Number of Deals Closed in 2017 120
Total Number of Deals Not Completed in 2017 7
Total Number of Pending Deals
Cash Deals 63
Stock Deals 21
Stock & Cash Deals 12
Special Conditions 5
Total Number of Pending Deals 101
Total Deal Size $828.72 billion

New Deals:

  1. The acquisition of NeuroDerm (NDRM) by Mitsubishi Tanabe Pharma Corporation for $654.33 million or $39 per share in cash.
  2. The acquisition of WebMD Health (WBMD) by Internet Brands for $2.8 billion or $66.50 per share in cash.
  3. The acquisition of MainSource Financial Group (MSFG) by First Financial Bancorp (FFBC) for $1 billion in an all stock deal.  Under the terms of the merger agreement, shareholders of MainSource will receive 1.3875 common shares of First Financial common stock for each share of MainSource common stock.
  4. The acquisition of State National Companies (SNC) by Markel Corporation (MKL) for $919 million or $21 per share in cash.
  5. The acquisition of Guidance Software (GUID) by Open Text Corporation (OTEX) for $161.94 million or $7.10 per share in cash.
  6. The acquisition of ShoreTel (SHOR) by Mitel Networks Corporation (MITL) for $430 million or $7.50 per share in cash.

Deal Updates:

  1. On July 24, 207, Global Sources (GSOL) announced that, at a special general meeting of shareholders of the Company, the Company’s shareholders approved (a) the amendment of Bye-Law 152 of the existing Bye-Laws of the Company and the Company’s adoption of the new Bye-Laws and (b) the acquisition of the Company by funds affiliated with Blackstone.
  2. On July 25, 2017, Caesars Entertainment Corporation (CZR) and Caesars Acquisition Company (CACQ) announced that stockholders of both companies voted to approve the previously announced merger of Caesars Entertainment and Caesars Acquisition. Caesars Entertainment currently anticipates completing the Merger and CEOC’s restructuring in the first week of October.
  3. On July 27, 2017, Destination Maternity (DEST) and Orchestra-Prémaman announced that the merger agreement, entered into by the parties on December 19, 2016, has been terminated.
  4. On July 27, 2017, DigitalGlobe (DGI) announced its preliminary results that its shareowners overwhelmingly voted to approve the Company’s proposed merger with MacDonald, Dettwiler and Associates. As previously announced, the transaction is expected to close in or shortly after the third quarter of 2017, subject to approval from the Committee on Foreign Investment in the United States and other customary approvals and closing conditions.

Closed Deals:

  1. The acquisition of Innocoll Holdings (INNL) by Gurnet Point on July 24, 2017. It took 111 days for this deal to be completed.
  2. The acquisition of Reynolds American (RAI) by British American Tobacco (BTI) on July 25, 2017. It took 189 days for this deal to be completed.
  3. The acquisition of Covisint Corporation (COVS) by Open Text Corporation (OTEX) on July 26, 2017. It took 51 days for this deal to be completed.
  4. The acquisition of Rightside Group (NAME) by Donuts on July 28, 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
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.3900 07/31/2017 60.18% 0.00%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.84 09/30/2017 21.35% 127.72%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $16.25 12/31/2017 10.77% 25.69%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $117.4700 12/31/2017 8.96% 21.38%
CCP 05/07/2017 Sabra Health Care REIT, Inc. (SBRA) $26.11 $24.2300 09/30/2017 7.76% 46.42%
ATW 05/30/2017 Ensco plc (ESV) $8.50 $8.00 09/30/2017 6.20% 37.10%
XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) $10.25 $9.67 12/31/2017 6.00% 14.31%
CAB 10/03/2016 Bass Pro Shops (N/A) $61.50 $58.06 09/30/2017 5.92% 35.45%
HUN 05/22/2017 CLARIANT N (CLN.VX) $28.37 $26.94 12/31/2017 5.31% 12.67%
SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) $49.00 $46.55 12/31/2017 5.26% 12.56%

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 $3.3900 1,712,108 07/31/2017 60.18% 0.00%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.84 946,852 09/30/2017 21.35% 127.72%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $16.25 143,646 12/31/2017 10.77% 25.69%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $117.4700 1,041,161 12/31/2017 8.96% 21.38%
+ CCP 05/07/2017 Sabra Health Care REIT, Inc. (SBRA) All Stock $4.07 billion $26.11 $24.2300 2,658,483 09/30/2017 7.76% 46.42%
+ ATW 05/30/2017 Ensco plc (ESV) All Stock $1.7 billion $8.50 $8.00 4,000,793 09/30/2017 6.20% 37.10%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.67 309,418 12/31/2017 6.00% 14.31%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $58.06 510,614 09/30/2017 5.92% 35.45%
+ HUN 05/22/2017 CLARIANT N (CLN.VX) All Stock $6.72 billion $28.37 $26.94 2,527,832 12/31/2017 5.31% 12.67%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $46.55 37,270 12/31/2017 5.26% 12.56%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $30.68 $29.29 32,226 12/31/2018 4.74% 3.34%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $102.7300 3,331,925 12/31/2017 4.64% 11.08%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $6.06 $5.83 13,336 12/31/2017 3.94% 9.39%
+ FCH 04/24/2017 RLJ Lodging Trust (RLJ) All Stock $2.58 billion $7.67 $7.40 836,411 12/31/2017 3.71% 8.85%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $6.78 62,340 12/31/2017 3.24% 7.74%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $28.81 $27.97 6,614 01/15/2018 3.00% 6.53%
+ RICE 06/19/2017 EQT Corporation (EQT) Cash Plus Stock $8.2 billion $29.76 $28.90 8,496,160 12/31/2017 2.97% 7.07%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $43.45 $42.23 1,776,651 12/31/2017 2.89% 6.91%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $85.82 675,716 06/30/2018 2.83% 3.09%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $20.15 $19.60 139,796 10/06/2017 2.81% 15.29%
+ 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 $10.90 390,236 12/31/2017 2.57% 6.13%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) All Cash $3.1 billion $184.00 $179.50 85,904 03/15/2018 2.51% 4.03%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $34.63 $33.89 10,456 12/31/2017 2.20% 5.24%
+ HNH 06/26/2017 Steel Partners Holdings L.P. (SPLP-PA) All Stock $693.48 million $33.00 $32.30 8,335 12/31/2017 2.16% 5.16%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $52.96 $51.86 13,515 12/31/2017 2.12% 5.05%
+ GSOL 05/23/2017 Expo Holdings I Ltd. (N/A) All Cash N/A $20.00 $19.60 164,239 12/31/2017 2.04% 4.87%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $59.76 $58.6100 928,548 09/30/2017 1.96% 11.72%
+ ASBB 05/01/2017 First Bancorp (FBNC) All Stock $175 million $45.32 $44.45 523 12/31/2017 1.95% 4.65%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $38.31 $37.60 320,189 12/31/2017 1.90% 4.52%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.07 44,364 01/08/2018 1.86% 4.23%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $37.35 $36.70 37,260 12/31/2017 1.77% 4.23%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $9.96 $9.80 106,975 03/31/2018 1.62% 2.44%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $34.80 $34.25 721,870 10/31/2017 1.60% 6.35%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $325.48 $320.38 1,294,726 11/30/2017 1.59% 4.76%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $24.66 $24.30 20,797 01/31/2018 1.50% 2.98%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $5.025 92,019 12/31/2017 1.49% 3.56%
+ FSBK 06/12/2017 Carolina Financial Corporation (CARO) All Stock $162 million $17.33 $17.09 7,938 12/31/2017 1.41% 3.37%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $25.40 12 09/30/2017 1.38% 8.25%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.5800 6,415,057 10/28/2017 1.35% 5.54%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.33 $4.27 5,144 09/30/2017 1.30% 7.78%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $26.36 $26.05 19,245 09/30/2017 1.20% 7.16%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $52.39 1,378,268 12/31/2018 1.16% 0.82%
+ DFT 06/09/2017 Digital Realty Trust, Inc. (DLR) All Stock $7.6 billion $61.68 $60.98 812,819 12/31/2017 1.15% 2.75%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $33.630 1,251,729 03/31/2018 1.10% 1.65%
+ SPLS 06/28/2017 Sycamore Partners (N/A) All Cash $6.9 billion $10.25 $10.14 10,042,628 12/31/2017 1.08% 2.59%
+ RATE 07/03/2017 Red Ventures (N/A) All Cash $1.4 billion $14.00 $13.85 327,255 12/31/2017 1.08% 2.58%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $36.01 $35.62 303,202 03/31/2018 1.08% 1.63%
+ MYCC 07/10/2017 Certain Investment Funds Affiliated with Apollo Global Management (N/A) All Cash $1.1 billion $17.12 $16.95 3,817,018 12/31/2017 1.00% 2.39%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $8.00 394,174 12/31/2017 1.00% 2.39%
+ DDC 07/17/2017 The Washington Companies (N/A) All Cash $1.06 billion $14.25 $14.11 454,094 12/31/2017 0.99% 2.37%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $24.69 $24.45 78,428 07/31/2017 0.99% 0.00%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $50.53 496,990 09/30/2017 0.93% 5.57%
+ SEV 07/17/2017 BorgWarner (N/A) All Cash $200 million $22.00 $21.81 5,477 12/31/2017 0.87% 2.08%
+ PRXL 06/20/2017 Pamplona Capital Management, LLP (N/A) All Cash $5 billion $88.10 $87.3800 756,262 10/31/2017 0.82% 3.27%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $25.52 $25.32 1,134,051 09/30/2017 0.81% 4.82%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $13.00 9,166 12/31/2017 0.77% 1.84%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $33.00 2,045,337 09/30/2017 0.76% 4.53%
+ ARIS 06/21/2017 True Wind Capital Management, LLC (N/A) All Cash $140 million $7.10 $7.05 28,683 09/30/2017 0.71% 4.24%
+ UCP 04/11/2017 Century Communities, Inc. (CCS) Cash Plus Stock $336 million $11.28 $11.20 12,249 09/30/2017 0.69% 4.13%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) All Cash $5.1 billion $23.50 $23.35 175,934 12/31/2017 0.64% 1.53%
+ PKY 06/30/2017 Canada Pension Plan Investment Board (N/A) All Cash $1.2 billion $23.05 $22.91 329,912 12/31/2017 0.61% 1.46%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.30 213,617 09/30/2017 0.60% 3.59%
+ FPO 06/28/2017 Government Properties Income Trust (GOV) All Cash $1.4 billion $11.15 $11.09 297,320 12/31/2017 0.54% 1.29%
+ MRVC 07/02/2017 ADVA Optical Networking (N/A) All Cash $50.57 million $10.00 $9.95 51,856 09/30/2017 0.50% 3.01%
+ MORE 07/05/2017 Greystar Growth and Income Fund (N/A) All Cash $3 billion $12.00 $11.94 7,422,802 12/31/2017 0.50% 1.20%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.91 83,668 09/30/2017 0.50% 3.01%
+ WBMD 07/24/2017 Internet Brands (N/A) All Cash $2.8 billion $66.50 $66.1800 1,299,533 12/31/2017 0.48% 1.15%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $92.5900 275,324 09/30/2017 0.44% 2.65%
+ WFM 06/16/2017 Amazon.com, Inc. (AMZN) All Cash $13.7 billion $42.00 $41.8200 3,690,719 12/31/2017 0.43% 1.03%
+ SNC 07/26/2017 Markel Corporation (MKL) All Cash $919 million $21.00 $20.91 679,409 12/31/2017 0.43% 1.03%
+ NDRM 07/24/2017 Mitsubishi Tanabe Pharma Corporation (N/A) All Cash $654.33 million $39.00 $38.85 322,155 12/31/2017 0.39% 0.92%
+ PTHN 05/15/2017 Thermo Fisher Scientific Inc. (TMO) All Cash $7.2 billion $35.00 $34.87 107,416 12/31/2017 0.37% 0.89%
+ NVDQ 06/19/2017 Stryker Corporation (SYK) All Cash $701 million $11.75 $11.71 2,312,470 09/30/2017 0.34% 2.04%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $63.33 1,638,004 12/31/2017 0.33% 0.79%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $39.98 $39.8500 320,586 12/31/2017 0.32% 0.78%
+ WMAR 06/29/2017 a wholly owned affiliate of Monomoy Capital Partners (N/A) All Cash $258 million $12.97 $12.93 103,570 09/30/2017 0.31% 1.85%
+ GUID 07/26/2017 Open Text Corporation (OTEX) All Cash $161.94 million $7.10 $7.08 691,992 09/30/2017 0.28% 1.69%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.42 3,417 12/31/2017 0.26% 0.63%
+ ENOC 06/22/2017 Enel Green Power North America, Inc. (N/A) All Cash $300 million $7.67 $7.65 431,130 09/30/2017 0.26% 1.56%
+ AMRI 06/06/2017 affiliates of The Carlyle Group and GTCR LLC (N/A) All Cash $1.49 billion $21.75 $21.70 435,634 09/30/2017 0.23% 1.38%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $11.55 $11.53 179,409 12/31/2017 0.17% 0.41%
+ 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 72,834 09/30/2017 0.17% 1.01%
+ SPNC 06/28/2017 Philips (PHG) All Cash $2.2 billion $38.50 $38.45 349,721 09/30/2017 0.13% 0.78%
+ NUTR 05/22/2017 an affiliate of HGGC (N/A) All Cash $446 million $41.80 $41.75 116,436 12/31/2017 0.12% 0.29%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $19.86 $19.86 527,033 12/31/2017 0.01% 0.03%
+ FUEL 07/18/2017 Sizmek Inc. (N/A) All Cash $145 million $2.60 $2.60 650,679 09/30/2017 0.00% 0.00%
+ 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 $20.00 83,415 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 15,404 09/30/2017 0.00% 0.00%
+ NVET 04/13/2017 Zoetis Inc. (ZTS) All Cash $26.93 million $6.72 $6.72 33,498 12/31/2017 0.00% 0.00%
+ XTLY 05/30/2017 Vista Equity Partners (N/A) All Cash $354.28 million $15.65 $15.65 853,127 09/30/2017 0.00% 0.00%
+ SHOR 07/27/2017 Mitel Networks Corporation (MITL) All Cash $430 million $7.50 $7.5 4,957,505 09/30/2017 0.00% 0.00%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $110.22 1,686,467 12/31/2017 -0.20% -0.48%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.20 291,012 12/31/2017 -0.32% -0.76%
+ WBKC 06/14/2017 Horizon Bancorp (HBNC) Cash Plus Stock $88.9 million $41.10 $41.25 4,288 10/31/2017 -0.37% -1.48%
+ NORD 04/25/2017 Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A) All Cash $4.3 billion $32.50 $32.67 946,294 08/31/2017 -0.52% -6.13%
+ NEFF 07/14/2017 H&E Equipment Services, Inc. (HEES) All Cash $1.2 billion $21.07 $21.20 193,077 10/31/2017 -0.61% -2.43%
+ VTTI 05/08/2017 VTTI B.V. (N/A) All Cash $1.59 billion $19.50 $19.70 49,742 09/30/2017 -1.02% -6.07%
+ OB 05/02/2017 Intact Financial Corporation (N/A) All Cash $1.7 billion $18.10 $18.29 138,853 12/31/2017 -1.04% -2.48%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $18.87 3,143 12/31/2017 -3.82% -9.10%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $40.94 35,053 07/31/2017 -20.62% 0.00%
+ ANGI 05/02/2017 IAC/InterActiveCorp (IAC) Special Conditions $331.67 million $8.50 $12.49 104,789 12/31/2017 -31.95% -76.21%

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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