Merger Arbitrage Mondays – November 13, 2017

Merger activity decreased last week with two new deals announced and one pending deal 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 190
Total Number of Deals Not Completed in 2017 11
Total Number of Pending Deals
Cash Deals 40
Stock Deals 21
Stock & Cash Deals 7
Special Conditions 10
Total Number of Pending Deals 78
Total Deal Size $946.97 billion

New Deals:

  1. The acquisition of Alon USA Partners (ALDW) by Delek US Holdings (DK) for $778.02 million in an all stock deal. Under terms of the merger agreement, the owners of the outstanding common units in Alon Partners that Delek US and its affiliates do not currently own will receive a fixed exchange ratio of 0.49 Delek US shares for each common unit of Alon Partners.
  2. The acquisition of magicJack VocalTec (CALL) by B. Riley Financial (RILY) for $143 million or $8.71 per share in cash.

Deal Updates:

  1. On November 6, 2017, Broadcom (AVGOproposed to acquire Qualcomm (QCOM) for $70.00 per share in cash and stock in a transaction valued at $130 billion. Broadcom’s proposal will stand whether Qualcomm’s Pending Acquisition of NXP (NXPI) is consummated on the currently disclosed terms of $110 per share or the NXP transaction is terminated.
  2. On November 7, 2017, Hawaiian Telcom Holdco (HCOM) announced that its stockholders voted overwhelmingly to approve the merger agreement with Cincinnati Bell (CBB).
  3. On November 7, 2017, Nabors Industries (NBR) and Tesco Corporation (TESO), jointly announced that the two companies have recently received anti-trust clearance from the U.S. Department of Justice and the Canada Competition Bureau.  In addition, the approval process with the Federal Antimonopoly Service of the Russian Federation was initiated, with its determination expected in the next few weeks.
  4. On November 8, 2017, U.S. antitrust regulators pressed for major changes to AT&T’s (T) proposed takeover of Time Warner (TWX), with demands that threaten one of the biggest media deals ever.
  5. On November 9, 2017, PharMerica Corporation (PMC), announced that at its special meeting of stockholders, a majority of the outstanding shares of PharMerica common stock voted to approve the adoption of the previously disclosed definitive merger agreement pursuant to which a newly formed company controlled by KKR, with Walgreens Boots Alliance (WBA) as a minority investor, will acquire PharMerica.
  6. On November 9, 2017, Rice Energy (RICE) announced that its stockholders overwhelmingly approved the adoption of the previously announced Agreement and Plan of Merger between Rice Energy and EQT Corporation (EQT). With the receipt of both sets of required stockholder approvals, the transaction is expected to close Monday, November 13, 2017.
  7. On November 10, 2017, CombiMatrix Corporation (CBMX) announced that, based upon the final vote count for the Company’s Special Meeting of Stockholders, a majority of its stockholders voted to approve the previously announced merger agreement with Invitae Corporation (NVTA).

Closed Deals:

  1. The acquisition of Bankrate (RATE) by Red Ventures on November 8, 2017. It took 128 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 $3.57 12/31/2017 52.10% 396.18%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $15.00 12/31/2017 20.00% 152.08%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $90.60 12/31/2017 18.65% 141.84%
CBMX 07/31/2017 Invitae Corporation (NVTA) $8.33 $7.05 12/31/2017 18.16% 138.06%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $25.79 06/30/2018 16.32% 26.02%
SNI 07/31/2017 Discovery Communications, Inc. (DISCK) $90.00 $79.18 03/31/2018 13.67% 36.14%
SXE 11/01/2017 American Midstream Partners, LP (AMID) $2.10 $1.92 06/30/2018 9.17% 14.61%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $118.30 01/31/2018 8.20% 37.88%
YUME 09/05/2017 RhythmOne plc (RTHM.L) $4.10 $3.81 03/31/2018 7.63% 20.17%
GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) $5.10 $4.75 12/31/2017 7.37% 56.03%

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 $3.57 2,548,202 12/31/2017 52.10% 396.18%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $15.00 528,994 12/31/2017 20.00% 152.08%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $90.60 26,729,826 12/31/2017 18.65% 141.84%
+ CBMX 07/31/2017 Invitae Corporation (NVTA) Special Conditions $20.22 million $8.33 $7.05 36,933 12/31/2017 18.16% 138.06%
+ NXTM 08/07/2017 Fresenius Medical Care (N/A) All Cash $1.62 billion $30.00 $25.79 319,179 06/30/2018 16.32% 26.02%
+ SNI 07/31/2017 Discovery Communications, Inc. (DISCK) Special Conditions $14.6 billion $90.00 $79.18 1,039,462 03/31/2018 13.67% 36.14%
+ SXE 11/01/2017 American Midstream Partners, LP (AMID) All Stock $815 million $2.10 $1.92 102,828 06/30/2018 9.17% 14.61%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $63.5 billion $128.00 $118.30 2,329,798 01/31/2018 8.20% 37.88%
+ YUME 09/05/2017 RhythmOne plc (RTHM.L) Cash Plus Stock $102.36 million $4.10 $3.81 95,565 03/31/2018 7.59% 20.08%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.75 3,816,301 12/31/2017 7.37% 56.03%
+ COL 09/04/2017 United Technologies Corp. (UTX) Special Conditions $30 billion $140.00 $133.58 715,007 09/30/2018 4.81% 5.46%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.79 112,273 12/31/2017 4.70% 35.73%
+ CALL 11/09/2017 B. Riley Financial, Inc. (RILY) All Cash $143 million $8.71 $8.325 823,195 06/30/2018 4.62% 7.37%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $31.14 $29.89 17,924 12/31/2018 4.17% 3.68%
+ NEWS 10/17/2017 First Eagle Investment Management (N/A) Special Conditions $3.4 billion $12.44 $11.96 665,324 12/31/2017 4.01% 30.52%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.77 1,127,867 12/31/2017 3.99% 30.34%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $24.80 393 06/30/2018 3.83% 6.11%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $85.39 137,663 06/30/2018 3.35% 5.34%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $42.30 $41.00 683,686 12/31/2017 3.18% 24.16%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $33.21 2,138,100 03/31/2018 2.38% 6.29%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $51.88 190,604 12/31/2018 2.16% 1.91%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) Special Conditions $3.1 billion $184.00 $180.36 25,419 03/15/2018 2.02% 6.04%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.32 $4.23 15,882 12/31/2017 2.02% 15.33%
+ NMRX 08/02/2017 Sierra Wireless, Inc. (SWIR) All Stock $107 million $3.54 $3.47 4,780 12/31/2017 1.93% 14.68%
+ CPN 08/18/2017 Energy Capital Partners (N/A) All Cash $17.3 billion $15.25 $14.99 3,157,014 03/31/2018 1.73% 4.59%
+ ABCO 08/29/2017 Optum and Vista Equity Partners (N/A) Special Conditions $2.66 billion $54.29 $53.40 4,989,884 03/31/2018 1.67% 4.41%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.16 153,586 01/08/2018 1.47% 9.57%
+ SBCP 08/14/2017 CenterState Banks, Inc. (CSFL) All Stock $176.7 million $22.72 $22.40 20,776 03/31/2018 1.44% 3.80%
+ DEL 10/23/2017 Potlatch Corporation (PCH) All Stock $1.18 billion $94.68 $93.49 384,137 06/30/2018 1.27% 2.03%
+ RT 10/16/2017 NRD Capital (N/A) All Cash $335 million $2.40 $2.37 562,934 03/31/2018 1.27% 3.35%
+ AAAP 10/30/2017 Novartis AG (NVS) All Cash $3.9 billion $82.00 $80.98 321,385 03/31/2018 1.26% 3.33%
+ TESO 08/14/2017 Nabors Industries Ltd. (NBR) All Stock $157.23 million $4.35 $4.30 927,846 12/31/2017 1.21% 9.20%
+ OA 09/18/2017 Northrop Grumman Corporation (NOC) All Cash $9.2 billion $134.50 $132.96 287,407 06/30/2018 1.16% 1.85%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $39.65 $39.20 156,120 12/31/2017 1.15% 8.73%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $10.21 $10.10 40,621 03/31/2018 1.11% 2.94%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.62 8,951,826 12/15/2017 1.03% 11.75%
+ DYN 10/30/2017 Vistra Energy Corp. (VST) All Stock $12.3 billion $12.13 $12.03 5,320,589 06/30/2018 0.86% 1.37%
+ ARCX 08/29/2017 Zenith (N/A) All Cash $632.96 million $16.50 $16.36 366,409 01/31/2018 0.86% 3.95%
+ ENZY 10/29/2017 Frutarom (N/A) All Cash $156.88 million $11.90 $11.80 15,653 03/31/2018 0.85% 2.24%
+ DMTX 10/03/2017 Ultragenyx Pharmaceutical Inc. (RARE) All Cash $151 million $6.00 $5.95 27,704 12/31/2017 0.84% 6.39%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $54.94 $54.49 13,555 12/31/2017 0.83% 6.30%
+ RIC 09/11/2017 Alamos Gold Inc. (AGI) All Stock $455.53 million $8.67 $8.60 124,138 11/15/2017 0.82% 148.76%
+ SSNI 09/18/2017 Itron, Inc. (ITRI) All Cash $712 million $16.25 $16.12 720,987 03/31/2018 0.81% 2.13%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $35.10 $34.83 91,300 03/31/2018 0.79% 2.08%
+ SNAK 10/26/2017 Utz Quality Foods, LLC (N/A) All Cash $165 million $4.00 $3.97 198,756 12/31/2017 0.76% 5.75%
+ CSBK 11/02/2017 Kearny Financial Corp. (KRNY) All Stock $408 million $17.03 $16.91 124,596 04/15/2018 0.72% 1.71%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $334.23 $331.89 667,743 11/30/2017 0.71% 15.16%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $33.31 $33.09 15,429 12/31/2017 0.66% 5.05%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $24.15 $24.00 13,119 01/31/2018 0.63% 2.93%
+ PMC 08/03/2017 KKR & Co. L.P. Unit (KKR) All Cash $1.39 billion $29.25 $29.10 203,482 05/01/2018 0.52% 1.11%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $12.11 $12.05 74,360 12/31/2017 0.50% 3.79%
+ BSFT 10/23/2017 Cisco (CSCO) All Cash $1.9 billion $55.00 $54.75 1,005,715 03/31/2018 0.46% 1.21%
+ PLPM 10/26/2017 Fintrax Group (N/A) All Cash $184.93 million $4.50 $4.48 148,202 12/31/2017 0.45% 3.39%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $31.51 $31.37 7,840 01/15/2018 0.44% 2.57%
+ EXAC 10/23/2017 TPG Capital (N/A) All Cash $625 million $42.00 $41.85 113,282 03/31/2018 0.36% 0.95%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $33.14 399,446 12/31/2017 0.33% 2.52%
+ RICE 06/19/2017 EQT Corporation (EQT) Cash Plus Stock $8.2 billion $29.42 $29.32 26,809,143 11/13/2017 0.33% 0.00%
+ ONVI 10/05/2017 Project Diamond Intermediate Holdings and Deltek (N/A) All Cash $70 million $9.00 $8.975 261 12/31/2017 0.28% 2.12%
+ CCC 09/21/2017 Kuraray (N/A) All Cash $1.3 billion $21.50 $21.45 1,149,771 12/31/2017 0.23% 1.77%
+ OME 10/06/2017 Cooke Inc. (N/A) All Cash $520.88 $22.00 $21.95 1,346,375 01/31/2018 0.23% 1.05%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.97 43,948 11/07/2017 0.17% 0.00%
+ EXA 09/28/2017 Dassault Syst�mes (N/A) All Cash $400 million $24.25 $24.24 19,806 12/31/2017 0.04% 0.31%
+ SFR 08/10/2017 Invitation Homes Inc. (INVH) All Stock $7.36 billion $38.30 $38.30 1,404,459 12/31/2017 0.00% 0.00%
+ BSF 08/22/2017 Arvest Bank (N/A) All Cash $391 million $10.28 $10.28 251,097 03/31/2018 0.00% 0.00%
+ CAA 10/30/2017 Lennar Corporation (LEN) All Stock $9.3 billion $51.96 $51.97 2,863,621 03/31/2018 -0.02% -0.06%
+ SNC 07/26/2017 Markel Corporation (MKL) All Cash $919 million $21.00 $21.01 88,641 12/31/2017 -0.05% -0.36%
+ BYBK 09/27/2017 Old Line Bancshares, Inc. (OLBK) All Stock $128.6 million $11.64 $11.65 2,942 06/30/2018 -0.13% -0.20%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.20 471,301 12/31/2017 -0.32% -2.44%
+ GIMO 10/26/2017 Elliott Management (N/A) All Cash $1.6 billion $38.50 $38.65 325,873 03/31/2018 -0.39% -1.03%
+ BOBE 09/19/2017 Post Holdings, Inc. (POST) All Cash $1.53 billion $77.00 $77.44 165,957 03/31/2018 -0.57% -1.50%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $39.45 $39.75 249,111 12/31/2017 -0.75% -5.71%
+ ALDW 11/08/2017 Delek US Holdings, Inc. (DK) All Stock $778.02 million $13.45 $13.63 541,355 03/31/2018 -1.35% -3.58%
+ CPLA 10/30/2017 Strayer Education, Inc. (STRA) All Stock $820.96 million $83.68 $85.20 246,563 09/30/2018 -1.79% -2.03%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $7.17 243,176 12/31/2017 -2.37% -18.03%
+ IXYS 08/28/2017 Littelfuse, Inc. (LFUS) All Cash $655 million $23.00 $23.75 134,086 03/31/2018 -3.16% -8.35%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $116.05 2,287,401 12/31/2017 -5.21% -39.64%
+ OCRX 11/02/2017 Mallinckrodt Public Limited Company (MNK) Special Conditions $42 million $1.52 $1.71 506,711 12/31/2017 -11.11% -84.49%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $40.44 45,339 12/31/2017 -19.63% -149.30%

Disclaimer: I hold positions in Fortress Investment Group (FIG), CombiMatrix (CBMX) and NewStar Financial (NEWS). 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

One Comment

  1. GeorgeCiardi
    November 13, 2017 at 6:22 am

    You can cross off DMTX as well. Pretty sure it closed early last week.

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