Merger Arbitrage Mondays – September 25, 2017

Merger activity increased last week with four new deals announced and 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 155
Total Number of Deals Not Completed in 2017 9
Total Number of Pending Deals
Cash Deals 46
Stock Deals 24
Stock & Cash Deals 12
Special Conditions 10
Total Number of Pending Deals 92
Total Deal Size $916.91 billion

New Deals:

  1. The acquisition of Orbital ATK (OA) by Northrop Grumman Corporation (NOC) for $9.2 billion or $134.50 per share in cash.
  2. The acquisition of Silver Spring Networks (SSNI) by Itron (ITRI) for $712 million or $16.25 per share in cash.
  3. The acquisition of Bob Evans Farms (BOBE) by Post Holdings (POST) for $1.53 billion or $77 per share in cash.
  4. The acquisition of Calgon Carbon Corporation (CCC) by Kuraray for $1.3 billion or $21.50 per share in cash.

Deal Updates:

  1. On September 18, 2017, PAREXEL International Corporation (PRXL) announced that its shareholders approved the previously announced proposed acquisition of the Company by certain investment funds affiliated with Pamplona Capital Management. The closing of the transaction is anticipated to occur on or about Friday, September 29, 2017.
  2. On September 18, 2017, Ultragenyx Pharmaceutical (RARE) announced that it has made a proposal to acquire all of the outstanding shares of common stock of Dimension Therapeutics (DMTX) for $5.50 per share, or approximately $138 million, in cash. On September 19, 2017, Dimension Therapeutics announced that its Board of Directors has determined in good faith, after consultation with its financial advisor and outside legal counsel, that the non-binding, unsolicited proposal from Ultragenyx Pharmaceutical to acquire Dimension could reasonably be expected to lead to a “Superior Proposal” as defined in Dimension’s merger agreement with Regenxbio (RGNX).
  3. On September 18, 2017, Mitel Networks Corporation (MITL) announced that the tender offer made by Mitel’s indirect, wholly-owned subsidiary to acquire all of the issued and outstanding shares of common stock of ShoreTel (SHORhas been extended until  September 22, 2017. The Offer was previously scheduled to expire on September 18, 2017.
  4. On September 18, 2017, Abbott (ABT) announced that it is extending its previously announced tender offer to purchase for cash all outstanding shares of Series B Convertible Perpetual Preferred Stock of Alere (ALR) at a price of $402.00 per share of Preferred Stock, plus accrued but unpaid dividends.  The Offer is being extended to allow additional time for the consummation of the Merger, which is a condition to the completion of the Offer.  The Offer was previously scheduled to expire on September 15, 2017 and will now expire on September 29, 2017.
  5. On September 19, 2017, Bayer said it would likely take until early next year to complete the planned $66 billion takeover of Monsanto (MON), which it had previously expected to be under wraps by the end of 2017. Bayer also said that it was unable to propose the sale of any digital farming assets to allay EU concerns about its planned $66 billion takeover of Monsanto.
  6. September 19, 2017: China’s Oceanwide Holdings is aiming to close its $2.7 billion acquisition of U.S. insurer Genworth Financial (GNW) by end of this year after securing approval from a U.S. government panel, said an executive of the Chinese firm.
  7. On September 19, 2017, Dominion Diamond Corporation (DDC) announced that at the special meeting of the shareholders of the Company, Shareholders overwhelmingly approved the previously-announced plan of arrangement pursuant to which Northwest Acquisitions has agreed to acquire all of the issued and outstanding common shares of the Company.
  8. On September 19, 2017, ASB Bancorp (ASBB) shareholders approved the merger with First Bancorp (FBNC). The merger is expected to close on October 1, 2017.
  9. On September 19, 2017, White Tale Holdings, the Cayman Island-based vehicle created by hedge funds Corvex and 40 North increased its stake in Clariant (CLN.VX) above 15 percent in order to maintain its opposition to the merger of equals between Huntsman (HUN) and Clariant. In response, Huntsman issued a statement stating that White Tale’s attacks on Huntsman are false.
  10. On September 22, 2017, Dominion Diamond Corporation (DDC) announced that the Ontario Superior Court of Justice has issued a final order approving its previously-announced plan of arrangement pursuant to which Northwest Acquisitions has agreed to acquire all of the issued and outstanding common shares of the Company.
  11. On September 22, 2017, Sevcon (SEV) announced that its stockholders overwhelmingly approved the proposed acquisition of Sevcon by BorgWarner at the Special Meeting of Stockholders. Subject to satisfaction or waiver of all other conditions, the closing of the acquisition is expected to occur on or about September 27, 2017.
  12. On September 22, 2017, Qualcomm Incorporated (QCOM) announced that Qualcomm River Holdings, an indirect wholly owned subsidiary of Qualcomm, has extended the offering period of its previously announced cash tender offer to purchase all of the outstanding common shares of NXP Semiconductors (NXPI). The tender offer is now scheduled to expire on October 20, 2017, unless extended or earlier terminated, in either case pursuant to the terms of the Purchase Agreement. The transaction is expected to close by the end of calendar 2017.

Closed Deals:

  1. The acquisition of ClubCorp Holdings (MYCC) by certain Investment Funds Affiliated with Apollo Global Management on September 18, 2017. It took 70 days for this deal to be completed.
  2. The acquisition of Monogram Residential Trust (MORE) by Greystar Growth and Income Fund on September 19, 2017. It took 76 days for this deal to be completed.
  3. The acquisition of Delta Natural Gas Company (DGAS) by Peoples Natural Gas on September 20, 2017. It took 211 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 $3.82 12/31/2017 42.15% 158.59%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $16.13 12/31/2017 11.59% 43.62%
CBMX 07/31/2017 Invitae Corporation (NVTA) $8.33 $7.50 12/31/2017 11.07% 41.64%
ASBB 05/01/2017 First Bancorp (FBNC) $47.65 $43.20 10/01/2017 10.30% 626.58%
YUME 09/05/2017 RhythmOne plc (RTHM.L) $5.15 $4.76 03/31/2018 8.24% 16.09%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $27.77 06/30/2018 8.03% 10.54%
COL 09/04/2017 United Technologies Corp. (UTX) $140.00 $130.48 09/30/2018 7.30% 7.20%
HUN 05/22/2017 CLARIANT N (CLN.VX) $29.29 $27.32 12/31/2017 7.20% 27.11%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $119.77 01/31/2018 6.87% 19.59%
GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) $5.10 $4.775 12/31/2017 6.81% 25.61%

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 $3.82 1,870,405 12/31/2017 42.15% 158.59%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $16.13 100,973 12/31/2017 11.59% 43.62%
+ CBMX 07/31/2017 Invitae Corporation (NVTA) Special Conditions $20.22 million $8.33 $7.50 39,886 12/31/2017 11.07% 41.64%
+ ASBB 05/01/2017 First Bancorp (FBNC) All Stock $175 million $47.65 $43.20 22,499 10/01/2017 10.30% 626.58%
+ YUME 09/05/2017 RhythmOne plc (RTHM.L) Cash Plus Stock $102.36 million $5.15 $4.76 107,732 03/31/2018 8.14% 15.89%
+ NXTM 08/07/2017 Fresenius Medical Care (N/A) All Cash $1.62 billion $30.00 $27.77 326,556 06/30/2018 8.03% 10.54%
+ COL 09/04/2017 United Technologies Corp. (UTX) Special Conditions $30 billion $140.00 $130.48 1,978,175 09/30/2018 7.30% 7.20%
+ HUN 05/22/2017 CLARIANT N (CLN.VX) All Stock $6.72 billion $29.24 $27.32 2,393,118 12/31/2017 7.04% 26.48%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $119.77 1,734,359 01/31/2018 6.87% 19.59%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.775 375,509 12/31/2017 6.81% 25.61%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.11 3,398,354 10/28/2017 5.28% 58.45%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $102.40 3,961,514 12/31/2017 4.98% 18.74%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $31.23 $29.81 50,954 12/31/2018 4.77% 3.77%
+ SNI 07/31/2017 Discovery Communications, Inc. (DISCK) Special Conditions $14.6 billion $90.00 $86.04 419,626 03/31/2018 4.60% 8.98%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $84.63 116,107 06/30/2018 4.28% 5.62%
+ CPN 08/18/2017 Energy Capital Partners (N/A) All Cash $17.3 billion $15.25 $14.66 7,255,590 03/31/2018 4.02% 7.86%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.88 277,908 12/31/2017 3.74% 14.09%
+ ATW 05/30/2017 Ensco plc (ESV) All Stock $1.7 billion $8.38 $8.11 18,833,945 09/30/2017 3.38% 246.63%
+ SBCP 08/14/2017 CenterState Banks, Inc. (CSFL) All Stock $176.7 million $22.94 $22.21 26,118 03/31/2018 3.31% 6.45%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $51.40 293,587 12/31/2018 3.11% 2.46%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $41.75 $40.54 1,918,746 12/31/2017 2.99% 11.24%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $33.06 1,305,138 03/31/2018 2.84% 5.55%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $55.72 $54.26 28,154 12/31/2017 2.69% 10.11%
+ TESO 08/14/2017 Nabors Industries Ltd. (NBR) All Stock $157.23 million $5.34 $5.25 239,973 12/31/2017 1.81% 6.79%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $24.74 $24.30 45,951 01/31/2018 1.79% 5.11%
+ NMRX 08/02/2017 Sierra Wireless, Inc. (SWIR) All Stock $107 million $3.91 $3.84 39,195 12/31/2017 1.72% 6.47%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) Special Conditions $3.1 billion $184.00 $180.93 31,773 03/15/2018 1.70% 3.62%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $6.89 123,645 12/31/2017 1.60% 6.01%
+ RICE 06/19/2017 EQT Corporation (EQT) Cash Plus Stock $8.2 billion $29.08 $28.63 2,991,683 12/31/2017 1.56% 5.86%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $34.76 $34.25 129,927 03/31/2018 1.48% 2.89%
+ ABCO 08/29/2017 Optum and Vista Equity Partners (N/A) Special Conditions $2.66 billion $54.29 $53.50 503,543 03/31/2018 1.48% 2.88%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $31.06 $30.62 11,308 01/15/2018 1.45% 4.73%
+ OA 09/18/2017 Northrop Grumman Corporation (NOC) All Cash $9.2 billion $134.50 $132.64 908,483 06/30/2018 1.40% 1.84%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $25.40 533 09/30/2017 1.38% 100.59%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $50.35 1,372,494 09/29/2017 1.29% 117.80%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $39.53 $39.05 291,739 12/31/2017 1.22% 4.59%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $9.92 $9.80 145,919 03/31/2018 1.19% 2.33%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $6.77 $6.69 26,637 12/31/2017 1.13% 4.24%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.99 177,244 12/31/2017 1.13% 4.24%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $35.45 $35.10 521,735 10/31/2017 1.01% 10.20%
+ FSBK 06/12/2017 Carolina Financial Corporation (CARO) All Stock $162 million $18.02 $17.85 19,104 12/31/2017 0.97% 3.65%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $20.64 $20.45 160,298 10/06/2017 0.92% 30.42%
+ WNRL 08/14/2017 Andeavor Logistics LP (ANDX) All Stock $1.8 billion $24.93 $24.75 73,391 12/31/2017 0.73% 2.74%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $320.95 $318.63 152,610 11/30/2017 0.73% 4.02%
+ 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 $11.10 265,653 12/31/2017 0.72% 2.71%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.35 82,761 01/08/2018 0.64% 2.23%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $34.76 $34.56 7,594 12/31/2017 0.59% 2.23%
+ DDC 07/17/2017 The Washington Companies (N/A) All Cash $1.06 billion $14.25 $14.18 635,142 12/31/2017 0.49% 1.86%
+ WBKC 06/14/2017 Horizon Bancorp (HBNC) Cash Plus Stock $88.9 million $41.85 $41.65 2,641 10/31/2017 0.47% 4.79%
+ CCC 09/21/2017 Kuraray (N/A) All Cash $1.3 billion $21.50 $21.40 7,544,031 12/31/2017 0.47% 1.76%
+ SSNI 09/18/2017 Itron, Inc. (ITRI) All Cash $712 million $16.25 $16.18 1,443,706 03/31/2018 0.43% 0.84%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $52.99 $52.77 1,274,754 10/31/2017 0.41% 4.15%
+ SFR 08/10/2017 Invitation Homes Inc. (INVH) All Stock $7.36 billion $35.75 $35.61 1,215,347 12/31/2017 0.39% 1.48%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.93 84,768 09/30/2017 0.39% 28.50%
+ KITE 08/28/2017 Gilead Sciences, Inc. (GILD) All Cash $11.9 billion $180.00 $179.30 1,485,658 12/31/2017 0.39% 1.47%
+ RATE 07/03/2017 Red Ventures (N/A) All Cash $1.4 billion $14.00 $13.95 931,229 12/31/2017 0.36% 1.35%
+ PMC 08/03/2017 KKR & Co. L.P. Unit (KKR) All Cash $1.39 billion $29.25 $29.15 505,743 05/01/2018 0.34% 0.57%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $25.73 $25.65 59,570 09/30/2017 0.32% 23.58%
+ NDRM 07/24/2017 Mitsubishi Tanabe Pharma Corporation (N/A) All Cash $654.33 million $39.00 $38.875 76,429 10/15/2017 0.32% 5.87%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $33.16 957,302 09/30/2017 0.27% 19.81%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $11.90 $11.87 62,951 12/31/2017 0.25% 0.95%
+ SNC 07/26/2017 Markel Corporation (MKL) All Cash $919 million $21.00 $20.95 84,969 12/31/2017 0.24% 0.90%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.28 $4.27 33,103 09/30/2017 0.22% 16.03%
+ NEFF 08/16/2017 United Rentals, Inc. (URI) All Cash $838 million $25.00 $24.95 125,638 12/31/2017 0.20% 0.75%
+ BSF 08/22/2017 Arvest Bank (N/A) All Cash $391 million $10.28 $10.26 41,666 03/31/2018 0.19% 0.38%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $20.83 $20.79 556,137 12/31/2017 0.17% 0.63%
+ PKY 06/30/2017 Canada Pension Plan Investment Board (N/A) All Cash $1.2 billion $23.05 $23.02 77,580 12/31/2017 0.13% 0.49%
+ PRXL 06/20/2017 Pamplona Capital Management, LLP (N/A) All Cash $5 billion $88.10 $87.99 565,646 09/29/2017 0.13% 11.41%
+ FPO 06/28/2017 Government Properties Income Trust (GOV) All Cash $1.4 billion $11.15 $11.14 457,171 12/31/2017 0.09% 0.34%
+ MXPT 08/28/2017 Valassis (N/A) All Cash $101 million $13.86 $13.85 23,485 12/31/2017 0.07% 0.27%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $61.47 2,330,605 09/30/2017 0.05% 3.56%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $39.20 $39.20 224,653 12/31/2017 0.01% 0.04%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.10 38,239 12/31/2017 0.00% 0.00%
+ SHOR 07/27/2017 Mitel Networks Corporation (MITL) All Cash $430 million $7.50 $7.50 1,464,712 09/30/2017 0.00% 0.00%
+ STS 08/08/2017 Wabash National Corporation (WNC) All Cash $260.9 million $21.00 $21.00 100,128 12/31/2017 0.00% 0.00%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) All Cash $5.1 billion $23.50 $23.51 565,597 12/31/2017 -0.04% -0.16%
+ OB 05/02/2017 Intact Financial Corporation (N/A) All Cash $1.7 billion $18.10 $18.11 134,826 12/31/2017 -0.06% -0.21%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $18.17 143,694 12/31/2017 -0.11% -0.41%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $37.50 $37.55 31,896 12/31/2017 -0.13% -0.50%
+ SEV 07/17/2017 BorgWarner (N/A) All Cash $200 million $22.00 $22.04 6,084 09/27/2017 -0.18% -33.12%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $26.50 $26.55 28,340 09/30/2017 -0.19% -14.18%
+ LDR 09/06/2017 Fortive Corporation (FTV) All Cash $770 million $67.25 $67.40 97,821 12/31/2017 -0.22% -0.84%
+ BOBE 09/19/2017 Post Holdings, Inc. (POST) All Cash $1.53 billion $77.00 $77.25 804,182 03/31/2018 -0.32% -0.63%
+ ARCX 08/29/2017 Zenith (N/A) All Cash $632.96 million $16.50 $16.57 77,385 01/31/2018 -0.42% -1.20%
+ HNH 06/26/2017 Steel Partners Holdings L.P. (SPLP-PA) All Stock $693.48 million $32.94 $33.10 11,187 12/31/2017 -0.47% -1.76%
+ IXYS 08/28/2017 Littelfuse, Inc. (LFUS) All Cash $655 million $23.00 $23.30 315,803 03/31/2018 -1.29% -2.51%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $112.64 733,878 12/31/2017 -2.34% -8.82%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $50.30 180,615 12/31/2017 -2.58% -9.73%
+ RIC 09/11/2017 Alamos Gold Inc. (AGI) All Stock $455.53 million $9.64 $9.90 329,497 11/15/2017 -2.63% -18.82%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $40.50 74,673 12/31/2017 -19.75% -74.33%
+ DMTX 08/25/2017 Regenxbio Inc. (RGNX) All Stock $41 million $4.44 $5.90 108,903 12/31/2017 -24.68% -92.88%
+ ANGI 05/02/2017 IAC/InterActiveCorp (IAC) Special Conditions $331.67 million $8.50 $12.63 499,021 12/31/2017 -32.70% -123.05%

Disclaimer: I hold positions in Fortress Investment Group (FIG), MaxPoint Interactive (MXPT) and CombiMatrix (CBMX). 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.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria

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