Merger Arbitrage Mondays – October 9, 2017

Merger activity increased last week with four new deals announced and ten 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 173
Total Number of Deals Not Completed in 2017 10
Total Number of Pending Deals
Cash Deals 39
Stock Deals 20
Stock & Cash Deals 11
Special Conditions 8
Total Number of Pending Deals 78
Total Deal Size $918.14 billion

New Deals:

  1. The acquisition of Dimension Therapeutics (DMTX) by Ultragenyx Pharmaceutical (RARE) for $151 million or $6.00 per share in cash.
  2. The acquisition of Onvia (ONVI) by Project Diamond Intermediate Holdings and Deltek for $70 million or $9.00 per share in cash.
  3. The acquisition of Omega Protein Corporation (OME) by Cooke for $520.88 million or $22.00 per share in cash.
  4. On September 13, 2017, Inotek Pharmaceuticals Corporation (ITEK) announced that they have entered into a definitive merger agreement with Rocket Pharmaceuticals. Subject to shareholder approval, the combined company will retain the name Rocket Pharmaceuticals. Under the terms of the merger agreement, shareholders of Rocket will receive shares of newly issued Inotek common shares in a private placement. Rocket shareholders are expected to own approximately 81% of the combined Company and current Inotek shareholders will own approximately 19% of the combined Company. We have not added this deal to our database as the company will continue to be listed after the merger.

Deal Updates:

  1. On October 2, 2017, Dimension Therapeutics (DMTX) announced that the Dimension Board of Directors  has determined that an unsolicited proposal received from Ultragenyx Pharmaceutical (RAREconstitutes a “Superior Proposal” as defined in Dimension’s existing merger agreement with REGENXBIO (RGNX). The merger agreement between Dimension Therapeutics and REGENXBIO was terminated on October 3, 2017.
  2. On October 2, 2017, The U.S. Department of Justice agreed to clear CenturyLink’s (CTLpending acquisition of Level 3 Communications (LVLT) subject to conditions outlined in a consent decree, including court approval of certain provisions. The acquisition remains subject to regulatory approval from the Federal Communications Commission and the California Public Utilities Commission, along with other customary closing conditions.
  3. October 2, 2017: A.M. Best commented that the Long-Term Issuer Credit Ratings of “bb-” of Genworth Financial (GNW) and Genworth Holdings as well as their existing Long-Term Issue Credit Ratings will remain under review with negative implications following the announcement that Genworth and China Oceanwide Holdings Group  have withdrawn their joint voluntary notice with the Committee on Foreign Investment in the United States (CFIUS).
  4. October 2, 2017: In order to allow for the additional CFIUS review period, Brocade Communication Systems (BRCD), Broadcom Limited (AVGO), Merger Sub and LSI agreed to refrain from exercising their right to terminate the Merger Agreement for failure to close the Merger by the November 1, 2017 end date under the Merger Agreement until after the earlier of (x) the date that is four business days after the 45th day after CFIUS accepts the parties’ revised joint voluntary notice and (y) November 30, 2017. The Merger Agreement remains in full force and effect. Brocade now anticipates the Merger to be completed by November 30, 2017, subject to clearance from CFIUS.
  5. On October 3, 2017, Calpine Corporation (CPN) announced the expiration of the 45-day “go-shop” period pursuant to the terms of the previously announced definitive agreement under which Energy Capital Partners along with a consortium of investors led by Access Industries and Canada Pension Plan Investment Board will acquire Calpine. The acquisition is expected to be completed during the first quarter of calendar year 2018.
  6. On October 4, 2017, Genworth Financial (GNW) and China Oceanwide Holdings Group announced that the North Carolina Department of Insurance has approved the proposed acquisition of control by Oceanwide of Genworth’s North Carolina-domiciled insurance companies, including Genworth Mortgage Insurance Corporation, as contemplated under the merger agreement entered into by Genworth and Oceanwide.
  7. On October 5, 2017, Sparton Corporation (SPA) announced that at a special meeting of Sparton shareholders, the shareholders approved the adoption of the previously announced Agreement and Plan of Merger by and among Sparton, Ultra Electronics Holdings and Ultra Electronics Aneira.
  8. On October 6, 2017, PacWest Bancorp (PACW) and CU Bancorp (CUNB) announced that all required regulatory approvals for the mergers of CUB into PacWest and California United Bank into Pacific Western Bank have been received.  Subject to the satisfaction of the remaining closing conditions, the mergers are expected to be consummated at the close of business on October 20, 2017.

Closed Deals:

  1. The acquisition of Angie’s List (ANGI) by IAC/InterActiveCorp (IAC) on September 29, 2017. It took 150 days for this deal to be completed.
  2. The acquisition of ASB Bancorp (ASBB) by First Bancorp (FBNC) on October 1, 2017. It took 153 days for this deal to be completed.
  3. The acquisition of Neff Corporation (NEFF) by United Rentals (URI) on October 2, 2017. It took 47 days for this deal to be completed.
  4. The acquisition of First Potomac Realty Trust (FPO) by Government Properties Income Trust (GOV) on October 2, 2017. It took 96 days for this deal to be completed.
  5. The acquisition of Astoria Financial Corporation (AF) by Sterling Bancorp (STL) on October 2, 2017. It took 209 days for this deal to be completed.
  6. The acquisition of Kite Pharma (KITE) by Gilead Sciences (GILD) on October 3, 2017. It took 36 days for this deal to be completed.
  7. The acquisition of Alere (ALR) by Abbott Laboratories (ABT) on October 3, 2017. It took 610 days for this deal to be completed.
  8. The acquisition of DigitalGlobe (DGI) by MacDonald, Dettwiler and Associates (MDA.TO) on October 5, 2017. It took 223 days for this deal to be completed.
  9. The acquisition of Caesars Acquisition Company (CACQ) by Caesars Entertainment Corporation (CZR) on October 6, 2017. It took 1,019 days for this deal to be completed.
  10. The acquisition of Atwood Oceanics (ATW) by Ensco (ESV) on October 7, 2017. It took 130 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 $3.63 12/31/2017 49.59% 218.06%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $15.94 12/31/2017 12.92% 56.83%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $27.68 06/30/2018 8.38% 11.59%
HUN 05/22/2017 CLARIANT N (CLN.VX) $29.67 $27.55 12/31/2017 7.71% 33.91%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $119.73 01/31/2018 6.91% 22.12%
CBMX 07/31/2017 Invitae Corporation (NVTA) $8.33 $7.80 12/31/2017 6.79% 29.88%
COL 09/04/2017 United Technologies Corp. (UTX) $140.00 $132.62 09/30/2018 5.56% 5.71%
GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) $5.10 $4.85 12/31/2017 5.15% 22.67%
SNI 07/31/2017 Discovery Communications, Inc. (DISCK) $90.00 $86.02 03/31/2018 4.63% 9.76%
XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) $10.25 $9.82 12/31/2017 4.38% 19.26%

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 $3.63 6,364,220 12/31/2017 49.59% 218.06%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $15.94 143,632 12/31/2017 12.92% 56.83%
+ NXTM 08/07/2017 Fresenius Medical Care (N/A) All Cash $1.62 billion $30.00 $27.68 150,041 06/30/2018 8.38% 11.59%
+ HUN 05/22/2017 CLARIANT N (CLN.VX) All Stock $6.72 billion $29.69 $27.55 4,612,180 12/31/2017 7.75% 34.08%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $119.73 1,466,853 01/31/2018 6.91% 22.12%
+ CBMX 07/31/2017 Invitae Corporation (NVTA) Special Conditions $20.22 million $8.33 $7.80 36,750 12/31/2017 6.79% 29.88%
+ COL 09/04/2017 United Technologies Corp. (UTX) Special Conditions $30 billion $140.00 $132.62 1,041,563 09/30/2018 5.56% 5.71%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.85 335,610 12/31/2017 5.15% 22.67%
+ SNI 07/31/2017 Discovery Communications, Inc. (DISCK) Special Conditions $14.6 billion $90.00 $86.02 564,958 03/31/2018 4.63% 9.76%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.82 406,099 12/31/2017 4.38% 19.26%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $31.98 $30.67 14,918 12/31/2018 4.28% 3.49%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $84.72 117,630 06/30/2018 4.17% 5.76%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $103.30 2,440,367 12/31/2017 4.07% 17.88%
+ RICE 06/19/2017 EQT Corporation (EQT) Cash Plus Stock $8.2 billion $28.84 $27.74 10,864,324 12/31/2017 3.95% 17.37%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.27 2,899,793 11/30/2017 3.91% 27.46%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $24.80 5,691 06/30/2018 3.83% 5.30%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $32.83 2,598,144 03/31/2018 3.56% 7.52%
+ YUME 09/05/2017 RhythmOne plc (RTHM.L) Cash Plus Stock $102.36 million $4.66 $4.50 50,011 03/31/2018 3.51% 7.40%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $42.42 $41.08 829,898 12/31/2017 3.26% 14.32%
+ SBCP 08/14/2017 CenterState Banks, Inc. (CSFL) All Stock $176.7 million $23.99 $23.36 10,045 03/31/2018 2.72% 5.73%
+ CPN 08/18/2017 Energy Capital Partners (N/A) All Cash $17.3 billion $15.25 $14.86 2,419,740 03/31/2018 2.62% 5.54%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $7.18 $7.01 47,947 12/31/2017 2.40% 10.54%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $52.02 347,477 12/31/2018 1.88% 1.53%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $25.41 $25.00 21,456 01/31/2018 1.65% 5.30%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $33.10 $32.57 24,691 01/15/2018 1.64% 6.10%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $36.93 $36.44 9,766 12/31/2017 1.33% 5.86%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $59.25 $58.56 6,236 12/31/2017 1.18% 5.21%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.99 1,749,552 12/31/2017 1.13% 4.95%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $41.71 $41.25 445,087 12/31/2017 1.11% 4.88%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) Special Conditions $3.1 billion $184.00 $182.00 28,872 03/15/2018 1.10% 2.55%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.57 $4.52 15,158 12/31/2017 1.03% 4.51%
+ NMRX 08/02/2017 Sierra Wireless, Inc. (SWIR) All Stock $107 million $4.04 $4.01 26,376 12/31/2017 0.77% 3.40%
+ HNH 06/26/2017 Steel Partners Holdings L.P. (SPLP-PA) All Stock $693.48 million $31.24 $31.00 124,804 12/31/2017 0.77% 3.38%
+ ABCO 08/29/2017 Optum and Vista Equity Partners (N/A) Special Conditions $2.66 billion $54.29 $53.90 722,762 03/31/2018 0.72% 1.53%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.35 57,541 01/08/2018 0.64% 2.58%
+ SSNI 09/18/2017 Itron, Inc. (ITRI) All Cash $712 million $16.25 $16.15 735,106 03/31/2018 0.62% 1.31%
+ SFR 08/10/2017 Invitation Homes Inc. (INVH) All Stock $7.36 billion $36.09 $35.87 934,837 12/31/2017 0.61% 2.69%
+ ONVI 10/05/2017 Project Diamond Intermediate Holdings and Deltek (N/A) All Cash $70 million $9.00 $8.95 413,115 12/31/2017 0.56% 2.46%
+ OA 09/18/2017 Northrop Grumman Corporation (NOC) All Cash $9.2 billion $134.50 $133.78 1,027,668 06/30/2018 0.54% 0.74%
+ WNRL 08/14/2017 Andeavor Logistics LP (ANDX) All Stock $1.8 billion $26.08 $25.95 149,114 12/31/2017 0.51% 2.22%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $36.49 $36.31 50,019 03/31/2018 0.50% 1.05%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $323.50 $322.00 651,997 11/30/2017 0.46% 3.26%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $10.30 $10.25 78,958 03/31/2018 0.46% 0.96%
+ RIC 09/11/2017 Alamos Gold Inc. (AGI) All Stock $455.53 million $9.79 $9.75 415,503 11/15/2017 0.43% 4.24%
+ RATE 07/03/2017 Red Ventures (N/A) All Cash $1.4 billion $14.00 $13.95 153,200 12/31/2017 0.36% 1.58%
+ DDC 07/17/2017 The Washington Companies (N/A) All Cash $1.06 billion $14.25 $14.20 593,585 12/31/2017 0.35% 1.55%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.94 38,087 11/07/2017 0.33% 4.21%
+ 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 $11.15 77,247 12/31/2017 0.27% 1.18%
+ NDRM 07/24/2017 Mitsubishi Tanabe Pharma Corporation (N/A) All Cash $654.33 million $39.00 $38.90 160,200 10/15/2017 0.26% 15.64%
+ FSBK 06/12/2017 Carolina Financial Corporation (CARO) All Stock $162 million $18.73 $18.69 4,737 12/31/2017 0.19% 0.83%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $27.00 $26.95 51,232 10/15/2017 0.18% 11.19%
+ PMC 08/03/2017 KKR & Co. L.P. Unit (KKR) All Cash $1.39 billion $29.25 $29.20 71,583 05/01/2018 0.17% 0.31%
+ EXA 09/28/2017 Dassault Syst�mes (N/A) All Cash $400 million $24.25 $24.22 125,262 12/31/2017 0.12% 0.54%
+ BSF 08/22/2017 Arvest Bank (N/A) All Cash $391 million $10.28 $10.27 10,308 03/31/2018 0.10% 0.21%
+ PKY 06/30/2017 Canada Pension Plan Investment Board (N/A) All Cash $1.2 billion $23.05 $23.03 395,918 10/12/2017 0.09% 10.57%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $38.08 $38.05 192,681 12/31/2017 0.08% 0.37%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) All Cash $5.1 billion $23.50 $23.485 593,259 12/31/2017 0.06% 0.28%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $33.24 566,584 12/31/2017 0.03% 0.13%
+ BYBK 09/27/2017 Old Line Bancshares, Inc. (OLBK) All Stock $128.6 million $11.60 $11.60 15,442 06/30/2018 0.02% 0.03%
+ CCC 09/21/2017 Kuraray (N/A) All Cash $1.3 billion $21.50 $21.50 616,997 12/31/2017 0.00% 0.00%
+ DMTX 10/03/2017 Ultragenyx Pharmaceutical Inc. (RARE) All Cash $151 million $6.00 $6.00 59,461 12/31/2017 0.00% 0.00%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $55.07 $55.08 952,088 10/31/2017 -0.01% -0.24%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $12.80 $12.81 121,591 12/31/2017 -0.05% -0.24%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $27.88 $27.90 18,191 10/31/2017 -0.06% -0.95%
+ MXPT 08/28/2017 Valassis (N/A) All Cash $101 million $13.86 $13.87 10,462 12/31/2017 -0.07% -0.32%
+ LDR 09/06/2017 Fortive Corporation (FTV) All Cash $770 million $67.25 $67.30 57,040 12/31/2017 -0.07% -0.33%
+ SNC 07/26/2017 Markel Corporation (MKL) All Cash $919 million $21.00 $21.02 190,484 12/31/2017 -0.10% -0.42%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.15 130,471 12/31/2017 -0.16% -0.71%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $38.08 $38.15 37,258 10/20/2017 -0.17% -5.78%
+ OME 10/06/2017 Cooke Inc. (N/A) All Cash $520.88 $22.00 $22.05 N/A 01/31/2018 -0.23% -0.73%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $7.02 118,987 12/31/2017 -0.28% -1.25%
+ TESO 08/14/2017 Nabors Industries Ltd. (NBR) All Stock $157.23 million $5.13 $5.15 230,220 12/31/2017 -0.31% -1.37%
+ BOBE 09/19/2017 Post Holdings, Inc. (POST) All Cash $1.53 billion $77.00 $77.38 380,331 03/31/2018 -0.49% -1.04%
+ WBKC 06/14/2017 Horizon Bancorp (HBNC) Cash Plus Stock $88.9 million $42.88 $43.330 1,889 10/31/2017 -1.03% -17.14%
+ ARCX 08/29/2017 Zenith (N/A) All Cash $632.96 million $16.50 $16.73 109,975 01/31/2018 -1.37% -4.40%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $113.95 2,856,888 12/31/2017 -3.47% -15.24%
+ IXYS 08/28/2017 Littelfuse, Inc. (LFUS) All Cash $655 million $23.00 $24.25 146,061 03/31/2018 -5.15% -10.88%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $42.20 45,956 12/31/2017 -22.99% -101.08%

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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