Merger Arbitrage Mondays – November 27, 2017

Merger activity decreased last week with two new deals announced and two pending 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 no new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 202
Total Number of Deals Not Completed in 2017 11
Total Number of Pending Deals
Cash Deals 35
Stock Deals 20
Stock & Cash Deals 8
Collars 1
Special Conditions 8
Total Number of Pending Deals 71
Total Deal Size $958.39 billion

New Deals:

  1. The acquisition of Cavium (CAVM) by Marvell Technology Group (MRVL) for $6 billion in a cash plus stock deal. Under the terms of the definitive agreement, Marvell will pay Cavium shareholders $40.00 in cash and 2.1757 Marvell common shares for each share of Cavium common stock.
  2. The acquisition of Time, Inc. (TIME) by Meredith Corporation (MVP) for $2.8 billion in an all cash deal. Under the terms of the definitive agreement, Meredith will pay Time shareholders $18.50 in cash. We added this potential acquisition to the Deals in the Works section of our website on November 16, 2017.

Deal Updates:

  1. November 6 ,2017: The European Commission has resumed its antitrust review of Bayer’s planned takeover of Monsanto (MON) after the companies were given time to provide more information. The new deadline for the Commission to decide over the deal is now March 5, 2018. Bayer reiterated it was aiming to wrap up the deal in early 2018.
  2. On November 20, 2017, The Justice Department sued to block AT&T (T) from taking over Time Warner (TWX), a sweeping challenge to a deal it says would give one company too much control in a rapidly evolving media landscape.
  3. On November 20, 2017, NewStar Financial (NEWSannounced the expiration of the 30 day “go shop” period included in the previously announced merger agreement between First Eagle Investment Management and NewStar and related asset purchase agreement with a newly formed investment fund sponsored by GSO Capital Partners LP.
  4. On November 20, 2017, Sparton Corporation (SPA) announced that the Committee on Foreign Investment in the United States (CFIUS) completed its review process and stated that there are no unresolved national security concerns with respect to the previously announced proposed acquisition of Sparton by Ultra Electronics Holdings.
  5. On November 21, 2017, Avista (AVA) shareholders approved the acquisition by Hydro One Limited.
  6. On November 22, 2017, Sandy Spring Bancorp (SASR) announced that it has received all of the requisite regulatory approvals from the Board of Governors of the Federal Reserve System, the Maryland Office of the Commissioner of Financial Regulation, and the Virginia State Corporation Commission to complete the acquisition of WashingtonFirst Bankshares (WFBI) and the related merger of WashingtonFirst Bank into Sandy Spring Bank. The transaction is expected to close on January 1, 2018.
  7. November 22, 2017: According to Reuters, Brazil’s antitrust agency Cade could extend by as up to 90 days its analysis of the takeover of seeds company Monsanto (MON) by Bayer AG.

Closed Deals:

  1. The acquisition of VWR Corporation (VWR) by Avantor on November 21, 2017. It took 200 days for this deal to be completed.
  2. The acquisition of Richmont Mines (RIC) by Alamos Gold (AGI) on November 23, 2017. It took 73 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 $3.45 12/31/2017 57.39% 616.11%
BCEI 11/15/2017 SandRidge Energy (SD) $36.00 $28.38 03/31/2018 26.85% 79.03%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $14.58 12/31/2017 23.46% 251.82%
SXE 11/01/2017 American Midstream Partners, LP (AMID) $2.00 $1.70 06/30/2018 17.65% 29.96%
TWX 10/22/2016 AT&T, Inc. (T) $103.77 $89.50 12/31/2017 15.95% 171.19%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $26.03 06/30/2018 15.25% 25.89%
SNI 07/31/2017 Discovery Communications, Inc. (DISCK) $90.00 $80.37 03/31/2018 11.98% 35.27%
TIME 11/26/2017 Meredith Corporation (MDP) $18.50 $16.90 03/31/2018 9.47% 27.87%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $118.13 03/31/2018 8.36% 24.59%
YUME 09/05/2017 RhythmOne plc (RTHM.L) $4.04 $3.77 03/31/2018 7.16% 21.08%

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 $3.45 1,928,450 12/31/2017 57.39% 616.11%
+ BCEI 11/15/2017 SandRidge Energy (SD) Special Conditions $746 million $36.00 $28.38 637,156 03/31/2018 26.85% 79.03%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $14.58 65,948 12/31/2017 23.46% 251.82%
+ SXE 11/01/2017 American Midstream Partners, LP (AMID) All Stock $815 million $2.00 $1.70 45,348 06/30/2018 17.65% 29.96%
+ TWX 10/22/2016 AT&T, Inc. (T) Collars $108.7 billion $103.77 $89.50 1,768,431 12/31/2017 15.95% 171.19%
+ NXTM 08/07/2017 Fresenius Medical Care (N/A) All Cash $1.62 billion $30.00 $26.03 69,192 06/30/2018 15.25% 25.89%
+ SNI 07/31/2017 Discovery Communications, Inc. (DISCK) Special Conditions $14.6 billion $90.00 $80.37 142,903 03/31/2018 11.98% 35.27%
+ TIME 11/26/2017 Meredith Corporation (MDP) All Cash $2.8 billion $18.50 $16.90 938,541 03/31/2018 9.47% 27.87%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $63.5 billion $128.00 $118.13 1,054,288 03/31/2018 8.36% 24.59%
+ YUME 09/05/2017 RhythmOne plc (RTHM.L) Cash Plus Stock $102.36 million $4.04 $3.77 51,509 03/31/2018 7.16% 21.08%
+ COL 09/04/2017 United Technologies Corp. (UTX) Special Conditions $30 billion $140.00 $132.58 275,516 09/30/2018 5.60% 6.65%
+ NEWS 10/17/2017 First Eagle Investment Management (N/A) Special Conditions $3.4 billion $12.44 $11.80 28,317 12/31/2017 5.42% 58.23%
+ CALL 11/09/2017 B. Riley Financial, Inc. (RILY) All Cash $143 million $8.71 $8.275 270,250 06/30/2018 5.26% 8.92%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $84.23 344,095 06/30/2018 4.77% 8.10%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $32.61 519,761 03/31/2018 4.26% 12.55%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.84 112,529 12/31/2017 4.17% 44.73%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.90 607,942 12/31/2017 4.08% 43.82%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $24.80 3,159 06/30/2018 3.83% 6.50%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $32.11 $30.93 7,031 12/31/2018 3.83% 3.50%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $42.62 $41.17 156,903 12/31/2017 3.53% 37.93%
+ ACFC 11/17/2017 Ameris Bancorp (ABCB) Cash Plus Stock $145 million $9.64 $9.33 11,275 06/30/2018 3.36% 5.70%
+ CAVM 11/20/2017 Marvell Technology Group Ltd. (MRVL) Cash Plus Stock $6 billion $91.78 $88.80 811,980 06/30/2018 3.36% 5.70%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.87 1,061,473 12/31/2017 2.67% 28.65%
+ DEL 10/23/2017 Potlatch Corporation (PCH) All Stock $1.18 billion $93.92 $91.50 93,623 06/30/2018 2.64% 4.48%
+ JASO 11/17/2017 JASO Holdings Limited, JASO Parent Limited and JASO Acquisition Limited (N/A) All Cash $677.43 $7.55 $7.36 509,380 03/31/2018 2.58% 7.60%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $51.93 85,606 12/31/2018 2.06% 1.88%
+ OA 09/18/2017 Northrop Grumman Corporation (NOC) All Cash $9.2 billion $134.50 $132.45 170,924 06/30/2018 1.55% 2.63%
+ CPN 08/18/2017 Energy Capital Partners (N/A) All Cash $17.3 billion $15.25 $15.02 1,618,599 03/31/2018 1.53% 4.51%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.21 29,748 01/08/2018 1.25% 10.86%
+ DYN 10/30/2017 Vistra Energy Corp. (VST) All Stock $12.3 billion $12.57 $12.42 1,478,760 06/30/2018 1.21% 2.06%
+ CSBK 11/02/2017 Kearny Financial Corp. (KRNY) All Stock $408 million $17.21 $17.03 28,048 04/15/2018 1.06% 2.77%
+ AAAP 10/30/2017 Novartis AG (NVS) All Cash $3.9 billion $82.00 $81.22 160,911 03/31/2018 0.96% 2.83%
+ ENZY 10/29/2017 Frutarom (N/A) All Cash $156.88 million $11.90 $11.80 28,990 03/31/2018 0.85% 2.49%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $40.34 $40.00 218,802 12/31/2017 0.84% 9.02%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) Special Conditions $3.1 billion $184.00 $182.50 18,249 03/15/2018 0.82% 2.78%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $37.53 $37.24 14,430 03/31/2018 0.78% 2.31%
+ SBCP 08/14/2017 CenterState Banks, Inc. (CSFL) All Stock $176.7 million $23.12 $22.96 1,662 03/31/2018 0.71% 2.08%
+ ARCX 08/29/2017 Zenith (N/A) All Cash $632.96 million $16.50 $16.39 30,048 01/31/2018 0.67% 3.77%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $337.81 $336.11 173,948 11/30/2017 0.51% 61.62%
+ SSNI 09/18/2017 Itron, Inc. (ITRI) All Cash $712 million $16.25 $16.17 541,667 03/31/2018 0.49% 1.46%
+ EXAC 10/23/2017 TPG Capital (N/A) All Cash $625 million $42.00 $41.80 19,513 03/31/2018 0.48% 1.41%
+ OME 10/06/2017 Cooke Inc. (N/A) All Cash $520.88 $22.00 $21.90 133,660 01/31/2018 0.46% 2.56%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $10.30 $10.25 38,994 03/31/2018 0.46% 1.34%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.41 $4.39 2,425 12/31/2017 0.40% 4.28%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $33.61 $33.48 2,823 01/01/2018 0.38% 3.93%
+ BSFT 10/23/2017 Cisco (CSCO) All Cash $1.9 billion $55.00 $54.80 186,578 03/31/2018 0.36% 1.07%
+ CPLA 10/30/2017 Strayer Education, Inc. (STRA) All Stock $820.96 million $83.20 $82.90 15,010 09/30/2018 0.36% 0.42%
+ AFAM 11/16/2017 LHC Group, Inc. (LHCG) All Stock $1.06 billion $64.21 $64.00 119,626 06/30/2018 0.34% 0.57%
+ SNAK 10/26/2017 Utz Quality Foods, LLC (N/A) All Cash $165 million $4.00 $3.99 47,241 12/31/2017 0.25% 2.69%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $24.96 $24.90 4,230 01/31/2018 0.23% 1.27%
+ PLPM 10/26/2017 Fintrax Group (N/A) All Cash $184.93 million $4.50 $4.49 63,788 12/31/2017 0.22% 2.39%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $32.75 $32.68 6,601 01/15/2018 0.21% 1.56%
+ BSF 08/22/2017 Arvest Bank (N/A) All Cash $391 million $10.28 $10.26 9,324 03/31/2018 0.19% 0.57%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $57.36 $57.25 4,231 12/31/2017 0.19% 1.99%
+ TESO 08/14/2017 Nabors Industries Ltd. (NBR) All Stock $157.23 million $3.90 $3.90 168,925 12/31/2017 0.08% 0.88%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $12.28 $12.27 26,492 11/30/2017 0.07% 7.93%
+ RT 10/16/2017 NRD Capital (N/A) All Cash $335 million $2.40 $2.40 149,189 03/31/2018 0.00% 0.00%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.10 89,244 12/31/2017 0.00% 0.00%
+ PMC 08/03/2017 KKR & Co. L.P. Unit (KKR) All Cash $1.39 billion $29.25 $29.25 79,600 05/01/2018 0.00% 0.00%
+ GIMO 10/26/2017 Elliott Management (N/A) All Cash $1.6 billion $38.50 $38.60 258,057 03/31/2018 -0.26% -0.76%
+ NMRX 08/02/2017 Sierra Wireless, Inc. (SWIR) All Stock $107 million $3.74 $3.75 1,301 12/31/2017 -0.40% -4.29%
+ CCC 09/21/2017 Kuraray (N/A) All Cash $1.3 billion $21.50 $21.60 265,074 12/31/2017 -0.46% -4.97%
+ BYBK 09/27/2017 Old Line Bancshares, Inc. (OLBK) All Stock $128.6 million $11.73 $11.80 4,744 06/30/2018 -0.61% -1.03%
+ CAA 10/30/2017 Lennar Corporation (LEN) All Stock $9.3 billion $54.00 $54.35 270,159 03/31/2018 -0.64% -1.88%
+ BOBE 09/19/2017 Post Holdings, Inc. (POST) All Cash $1.53 billion $77.00 $77.63 60,129 03/31/2018 -0.81% -2.39%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $40.95 $41.35 218,087 12/31/2017 -0.96% -10.31%
+ ALDW 11/08/2017 Delek US Holdings, Inc. (DK) All Stock $778.02 million $15.40 $15.58 210,286 03/31/2018 -1.15% -3.39%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $114.65 1,942,484 12/31/2017 -4.06% -43.54%
+ IXYS 08/28/2017 Littelfuse, Inc. (LFUS) All Cash $655 million $23.00 $24.50 93,979 03/31/2018 -6.12% -18.02%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $7.965 517,647 12/31/2017 -12.12% -130.06%
+ OCRX 11/02/2017 Mallinckrodt Public Limited Company (MNK) Special Conditions $42 million $1.52 $1.73 76,713 12/31/2017 -12.14% -130.31%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $41.30 70,847 03/31/2018 -21.31% -62.72%

Disclaimer: I hold positions in Time (TIME), Fortress Investment Group (FIG) 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.

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