Merger Arbitrage Mondays – July 31, 2017

  • 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 2017120
Total Number of Deals Not Completed in 20177
Total Number of Pending Deals
Cash Deals63
Stock Deals21
Stock & Cash Deals12
Special Conditions5
Total Number of Pending Deals101
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:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnualized
Profit
GNW10/23/2016China Oceanwide Holdings Group Co., Ltd. (N/A)$5.43$3.390007/31/201760.18%0.00%
LSCC11/03/2016Canyon Bridge Capital Partners, Inc. (N/A)$8.30$6.8409/30/201721.35%127.72%
MGI01/26/2017Ant Financial Services Group (N/A)$18.00$16.2512/31/201710.77%25.69%
MON09/14/2016Bayer AG (BAYRY)$128.00$117.470012/31/20178.96%21.38%
CCP05/07/2017Sabra Health Care REIT, Inc. (SBRA)$26.11$24.230009/30/20177.76%46.42%
ATW05/30/2017Ensco plc (ESV)$8.50$8.0009/30/20176.20%37.10%
XCRA04/10/2017an affiliate of Sino IC Capital and Unic Capital Management (N/A)$10.25$9.6712/31/20176.00%14.31%
CAB10/03/2016Bass Pro Shops (N/A)$61.50$58.0609/30/20175.92%35.45%
HUN05/22/2017CLARIANT N (CLN.VX)$28.37$26.9412/31/20175.31%12.67%
SGBK03/27/2017Home Bancshares, Inc. (HOMB)$49.00$46.5512/31/20175.26%12.56%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.

SymbolAnnounced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
VolumeClosing
Date
ProfitAnnu.
Profit
+GNW10/23/2016China Oceanwide Holdings Group Co., Ltd. (N/A)All Cash$2.7 billion$5.43$3.39001,712,10807/31/201760.18%0.00%
+LSCC11/03/2016Canyon Bridge Capital Partners, Inc. (N/A)All Cash$1.3 billion$8.30$6.84946,85209/30/201721.35%127.72%
+MGI01/26/2017Ant Financial Services Group (N/A)All Cash$1.2 billion$18.00$16.25143,64612/31/201710.77%25.69%
+MON09/14/2016Bayer AG (BAYRY)All Cash$66 billion$128.00$117.47001,041,16112/31/20178.96%21.38%
+CCP05/07/2017Sabra Health Care REIT, Inc. (SBRA)All Stock$4.07 billion$26.11$24.23002,658,48309/30/20177.76%46.42%
+ATW05/30/2017Ensco plc (ESV)All Stock$1.7 billion$8.50$8.004,000,79309/30/20176.20%37.10%
+XCRA04/10/2017an affiliate of Sino IC Capital and Unic Capital Management (N/A)All Cash$439.97 million$10.25$9.67309,41812/31/20176.00%14.31%
+CAB10/03/2016Bass Pro Shops (N/A)All Cash$5 billion$61.50$58.06510,61409/30/20175.92%35.45%
+HUN05/22/2017CLARIANT N (CLN.VX)All Stock$6.72 billion$28.37$26.942,527,83212/31/20175.31%12.67%
+SGBK03/27/2017Home Bancshares, Inc. (HOMB)Special Conditions$778.4 million$49.00$46.5537,27012/31/20175.26%12.56%
+HCOM07/10/2017Cincinnati Bell (CBB)Cash Plus Stock$650 million$30.68$29.2932,22612/31/20184.74%3.34%
+TWX10/22/2016AT&T, Inc. (T)Special Conditions$108.7 billion$107.50$102.73003,331,92512/31/20174.64%11.08%
+AMFW03/13/2017John Wood Group Plc (WG.L)All Stock$4.3 billion$6.06$5.8313,33612/31/20173.94%9.39%
+FCH04/24/2017RLJ Lodging Trust (RLJ)All Stock$2.58 billion$7.67$7.40836,41112/31/20173.71%8.85%
+SVA06/26/2017Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A)All Cash$437.59 million$7.00$6.7862,34012/31/20173.24%7.74%
+XBKS05/22/2017Union Bankshares Corporation (UBSH)All Stock$701.2 million$28.81$27.976,61401/15/20183.00%6.53%
+RICE06/19/2017EQT Corporation (EQT)Cash Plus Stock$8.2 billion$29.76$28.908,496,16012/31/20172.97%7.07%
+TRCO05/08/2017Sinclair Broadcast Group, Inc. (SBGI)Cash Plus Stock$6.6 billion$43.45$42.231,776,65112/31/20172.89%6.91%
+WGL01/25/2017AltaGas Ltd. (N/A)All Cash$6.4 billion$88.25$85.82675,71606/30/20182.83%3.09%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$20.15$19.60139,79610/06/20172.81%15.29%
+SCLN06/08/2017a 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$10.90390,23612/31/20172.57%6.13%
+STRP05/11/2017Verizon Communications Inc. (VZ)All Cash$3.1 billion$184.00$179.5085,90403/15/20182.51%4.03%
+WFBI05/16/2017Sandy Spring Bancorp, Inc. (SASR)All Stock$489 million$34.63$33.8910,45612/31/20172.20%5.24%
+HNH06/26/2017Steel Partners Holdings L.P. (SPLP-PA)All Stock$693.48 million$33.00$32.308,33512/31/20172.16%5.16%
+PBNC04/27/2017TowneBank (TOWN)All Stock$323.7 million$52.96$51.8613,51512/31/20172.12%5.05%
+GSOL05/23/2017Expo Holdings I Ltd. (N/A)All CashN/A$20.00$19.60164,23912/31/20172.04%4.87%
+LVLT10/31/2016CenturyLink, Inc. (CTL)Cash Plus Stock$34 billion$59.76$58.6100928,54809/30/20171.96%11.72%
+ASBB05/01/2017First Bancorp (FBNC)All Stock$175 million$45.32$44.4552312/31/20171.95%4.65%
+CBF05/04/2017First Horizon National Corp. (FHN)Cash Plus Stock$2.2 billion$38.31$37.60320,18912/31/20171.90%4.52%
+SPA07/07/2017Ultra Electronics Holdings (N/A)All Cash$308.13 million$23.50$23.0744,36401/08/20181.86%4.23%
+CUNB04/06/2017PacWest Bancorp (PACW)Cash Plus Stock$705 million$37.35$36.7037,26012/31/20171.77%4.23%
+BKMU07/20/2017Associated Banc-Corp (ASB)All Stock$482 million$9.96$9.80106,97503/31/20181.62%2.44%
+DGI02/24/2017MacDonald, Dettwiler and Associates Ltd. (MDA.TO)Cash Plus Stock$3.6 billion$34.80$34.25721,87010/31/20171.60%6.35%
+BCR04/23/2017Becton, Dickinson and Company (BDX)Cash Plus Stock$24 billion$325.48$320.381,294,72611/30/20171.59%4.76%
+SNBC06/30/2017OceanFirst Financial Corp. (OCFC)Cash Plus Stock$640.73 million$24.66$24.3020,79701/31/20181.50%2.98%
+GLBL03/07/2017Brookfield Asset Management Inc. (BAM)All Cash$1.3 billion$5.10$5.02592,01912/31/20171.49%3.56%
+FSBK06/12/2017Carolina Financial Corporation (CARO)All Stock$162 million$17.33$17.097,93812/31/20171.41%3.37%
+ANCB04/11/2017Washington Federal, Inc. (WAFD)Special Conditions$63.9 million$25.75$25.401209/30/20171.38%8.25%
+BRCD11/02/2016Broadcom Limited (AVGO)All Cash$5.5 billion$12.75$12.58006,415,05710/28/20171.35%5.54%
+RBPAA01/30/2017Bryn Mawr Bank Corporation (BMTC)All Stock$127.7 million$4.33$4.275,14409/30/20171.30%7.78%
+OKSB12/14/2016Simmons First National Corporation (SFNC)Cash Plus Stock$564.4 million$26.36$26.0519,24509/30/20171.20%7.16%
+AVA07/19/2017Hydro One Limited (N/A)All Cash$5.3 billion$53.00$52.391,378,26812/31/20181.16%0.82%
+DFT06/09/2017Digital Realty Trust, Inc. (DLR)All Stock$7.6 billion$61.68$60.98812,81912/31/20171.15%2.75%
+AKRX04/24/2017Fresenius Kabi (N/A)All Cash$4.75 billion$34.00$33.6301,251,72903/31/20181.10%1.65%
+SPLS06/28/2017Sycamore Partners (N/A)All Cash$6.9 billion$10.25$10.1410,042,62812/31/20171.08%2.59%
+RATE07/03/2017Red Ventures (N/A)All Cash$1.4 billion$14.00$13.85327,25512/31/20171.08%2.58%
+MSFG07/25/2017First Financial Bancorp. (FFBC)All Stock$1 billion$36.01$35.62303,20203/31/20181.08%1.63%
+MYCC07/10/2017Certain Investment Funds Affiliated with Apollo Global Management (N/A)All Cash$1.1 billion$17.12$16.953,817,01812/31/20171.00%2.39%
+FIG02/14/2017SoftBank Group Corp. (SFTBY)All Cash$3.3 billion$8.08$8.00394,17412/31/20171.00%2.39%
+DDC07/17/2017The Washington Companies (N/A)All Cash$1.06 billion$14.25$14.11454,09412/31/20170.99%2.37%
+PCBK01/09/2017Columbia Banking System, Inc. (COLB)All Stock$644.1 million$24.69$24.4578,42807/31/20170.99%0.00%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.3 billion$51.00$50.53496,99009/30/20170.93%5.57%
+SEV07/17/2017BorgWarner (N/A)All Cash$200 million$22.00$21.815,47712/31/20170.87%2.08%
+PRXL06/20/2017Pamplona Capital Management, LLP (N/A)All Cash$5 billion$88.10$87.3800756,26210/31/20170.82%3.27%
+SWFT04/10/2017Knight Transportation, Inc. (KNX)All Stock$3.24 bilion$25.52$25.321,134,05109/30/20170.81%4.82%
+EGAS10/11/2016First Reserve Energy Infrastructure (N/A)All Cash$196 million$13.10$13.009,16612/31/20170.77%1.84%
+VWR05/05/2017Avantor (N/A)All Cash$6.4 billion$33.25$33.002,045,33709/30/20170.76%4.53%
+ARIS06/21/2017True Wind Capital Management, LLC (N/A)All Cash$140 million$7.10$7.0528,68309/30/20170.71%4.24%
+UCP04/11/2017Century Communities, Inc. (CCS)Cash Plus Stock$336 million$11.28$11.2012,24909/30/20170.69%4.13%
+WSTC05/09/2017affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO)All Cash$5.1 billion$23.50$23.35175,93412/31/20170.64%1.53%
+PKY06/30/2017Canada Pension Plan Investment Board (N/A)All Cash$1.2 billion$23.05$22.91329,91212/31/20170.61%1.46%
+NSR12/14/2016private investment group led by Golden Gate Capital (N/A)All Cash$2.9 billion$33.50$33.30213,61709/30/20170.60%3.59%
+FPO06/28/2017Government Properties Income Trust (GOV)All Cash$1.4 billion$11.15$11.09297,32012/31/20170.54%1.29%
+MRVC07/02/2017ADVA Optical Networking (N/A)All Cash$50.57 million$10.00$9.9551,85609/30/20170.50%3.01%
+MORE07/05/2017Greystar Growth and Income Fund (N/A)All Cash$3 billion$12.00$11.947,422,80212/31/20170.50%1.20%
+LMOS02/20/2017EQT Infrastructure investment strategy (N/A)All Cash$950 million$18.00$17.9183,66809/30/20170.50%3.01%
+WBMD07/24/2017Internet Brands (N/A)All Cash$2.8 billion$66.50$66.18001,299,53312/31/20170.48%1.15%
+WOOF01/07/2017Mars, Incorporated (N/A)All Cash$9.1 billion$93.00$92.5900275,32409/30/20170.44%2.65%
+WFM06/16/2017Amazon.com, Inc. (AMZN)All Cash$13.7 billion$42.00$41.82003,690,71912/31/20170.43%1.03%
+SNC07/26/2017Markel Corporation (MKL)All Cash$919 million$21.00$20.91679,40912/31/20170.43%1.03%
+NDRM07/24/2017Mitsubishi Tanabe Pharma Corporation (N/A)All Cash$654.33 million$39.00$38.85322,15512/31/20170.39%0.92%
+PTHN05/15/2017Thermo Fisher Scientific Inc. (TMO)All Cash$7.2 billion$35.00$34.87107,41612/31/20170.37%0.89%
+NVDQ06/19/2017Stryker Corporation (SYK)All Cash$701 million$11.75$11.712,312,47009/30/20170.34%2.04%
+MBLY03/13/2017Intel Corporation (INTC)All Cash$14.7 billion$63.54$63.331,638,00412/31/20170.33%0.79%
+HSNI07/06/2017Liberty Interactive Corporation (QVCA)All Stock$2.6 billion$39.98$39.8500320,58612/31/20170.32%0.78%
+WMAR06/29/2017a wholly owned affiliate of Monomoy Capital Partners (N/A)All Cash$258 million$12.97$12.93103,57009/30/20170.31%1.85%
+GUID07/26/2017Open Text Corporation (OTEX)All Cash$161.94 million$7.10$7.08691,99209/30/20170.28%1.69%
+DGAS02/21/2017Peoples Natural Gas (N/A)All Cash$227 million$30.50$30.423,41712/31/20170.26%0.63%
+ENOC06/22/2017Enel Green Power North America, Inc. (N/A)All Cash$300 million$7.67$7.65431,13009/30/20170.26%1.56%
+AMRI06/06/2017affiliates of The Carlyle Group and GTCR LLC (N/A)All Cash$1.49 billion$21.75$21.70435,63409/30/20170.23%1.38%
+PSTB04/27/2017South State Corporation (SSB)All Stock$690.8 million$11.55$11.53179,40912/31/20170.17%0.41%
+SNOW04/10/2017An entity controlled by affiliates of the Aspen Skiing Compan and KSL Capital Partners (N/A)All Cash$1.5 billion$23.75$23.7172,83409/30/20170.17%1.01%
+SPNC06/28/2017Philips (PHG)All Cash$2.2 billion$38.50$38.45349,72109/30/20170.13%0.78%
+NUTR05/22/2017an affiliate of HGGC (N/A)All Cash$446 million$41.80$41.75116,43612/31/20170.12%0.29%
+AF03/07/2017Sterling Bancorp (STL)All Stock$2.2 billion$19.86$19.86527,03312/31/20170.01%0.03%
+FUEL07/18/2017Sizmek Inc. (N/A)All Cash$145 million$2.60$2.60650,67909/30/20170.00%0.00%
+NCIT07/03/2017by private funds managed by an affiliate of H.I.G. Capital, LLC (N/A)All Cash$190.44 million$20.00$20.0083,41509/30/20170.00%0.00%
+AIQ04/11/2017Tahoe Investment Group Co., Ltd. (N/A)All Cash$682 million$13.25$13.2515,40409/30/20170.00%0.00%
+NVET04/13/2017Zoetis Inc. (ZTS)All Cash$26.93 million$6.72$6.7233,49812/31/20170.00%0.00%
+XTLY05/30/2017Vista Equity Partners (N/A)All Cash$354.28 million$15.65$15.65853,12709/30/20170.00%0.00%
+SHOR07/27/2017Mitel Networks Corporation (MITL)All Cash$430 million$7.50$7.54,957,50509/30/20170.00%0.00%
+NXPI10/27/2016QUALCOMM Incorporated (QCOM)All Cash$38 billion$110.00$110.221,686,46712/31/2017-0.20%-0.48%
+FGL05/24/2017CF Corporation (CFCO)All Cash$1.835 billion$31.10$31.20291,01212/31/2017-0.32%-0.76%
+WBKC06/14/2017Horizon Bancorp (HBNC)Cash Plus Stock$88.9 million$41.10$41.254,28810/31/2017-0.37%-1.48%
+NORD04/25/2017Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A)All Cash$4.3 billion$32.50$32.67946,29408/31/2017-0.52%-6.13%
+NEFF07/14/2017H&E Equipment Services, Inc. (HEES)All Cash$1.2 billion$21.07$21.20193,07710/31/2017-0.61%-2.43%
+VTTI05/08/2017VTTI B.V. (N/A)All Cash$1.59 billion$19.50$19.7049,74209/30/2017-1.02%-6.07%
+OB05/02/2017Intact Financial Corporation (N/A)All Cash$1.7 billion$18.10$18.29138,85312/31/2017-1.04%-2.48%
+ZPIN04/06/2017SEEK International Investments Pty Ltd. (N/A)All Cash$678.59 million$18.20$18.873,14312/31/2017-3.82%-9.10%
+GNCMA04/04/2017Liberty Ventures (LVNTA)Special Conditions$2.68 billion$32.50$40.9435,05307/31/2017-20.62%0.00%
+ANGI05/02/2017IAC/InterActiveCorp (IAC)Special Conditions$331.67 million$8.50$12.49104,78912/31/2017-31.95%-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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