Merger Arbitrage Mondays – December 25, 2017

Merger activity increased last week with seven new deals announced and four 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 two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 215
Total Number of Deals Not Completed in 2017 11
Total Number of Pending Deals
Cash Deals 43
Stock Deals 19
Stock & Cash Deals 9
Collars 1
Special Conditions 7
Total Number of Pending Deals 78
Total Deal Size $1141.08702 billion

New Deals:

  1. The acquisition of Amplify Snack Brands (BETR) by The Hershey Company (HSY) for $1.6 billion or $12.00 per share in cash.
  2. The acquisition of Pinnacle Entertainment (PNK) by Penn National Gaming (PENN) for $5.85 billion. Under the terms of the agreement, Pinnacle shareholders will receive $20.00 in cash and 0.42 shares of Penn National common stock for each Pinnacle share. We added this “potential” deal to our Deals in the Works tool on October 5, 2017.
  3. The acquisition of Snyder’s-Lance (LNCE) by Campbell Soup Company (CPB) for $5.8 billion or $50.00 per share in cash. We added this “potential” deal to our Deals in the Works tool on December 14, 2017.
  4. The acquisition of Chicago Bridge & Iron Company (CBI) by McDermott International (MDR) for $3.73 billion. Under the terms of the agreement, CB&I shareholders will be entitled to receive 2.47221 shares of McDermott common stock for each share of CB&I common stock owned (or 0.82407 shares if McDermott effects a planned three-to-one reverse stock split prior to closing), subject to any withholding taxes. Shareholders of neither company were pleased by this announcement as both companies saw their stock price drop after the merger was announced.
  5. The acquisition of Kindred Healthcare (KND) by TPG Capital, Welsh, Carson, Anderson & Stowe and Humana (HUM) for $4.1 billion or $9.00 per share in cash. We added this “potential” deal to our Deals in the Works tool on April 20, 2017.
  6. The acquisition of Gener8 Maritime (GNRT) by Euronav (EURN) for $2.08 billion in an all stock deal. Under the terms of the agreement Gener8 shareholders will receive 0.7272 shares of Euronav shares for each share of Gener8. We added this “potential” deal to our Deals in the Works tool on May 31, 2017.
  7. The acquisition of Ignyta (RXDX) by Roche Holding AG (RHHBY) for $1.7 billion or $27.00 per share in cash.

Deal Updates:

  1. On December 18, 2017, The Ruby Tuesday (RT) Board of Directors rejected a highly-conditional and not fully-financed acquisition proposal from The Boaz Group.
  2. On December 18, 2017, Arc Logistics Partners (ARCX) announced that at the special meeting of the Partnership’s common unitholders, the Partnership’s unitholders voted to approve the Purchase Agreement and Plan of Mergerwith Zenith. Subject to satisfaction of the remaining closing conditions, the parties currently expect to close the Proposed Transaction on or about December 21, 2017.
  3. On December 21, 2017, Xcerra (XCRA) said that it would resubmit its deal to be acquired by a Chinese state-backed semiconductor investment fund to give U.S. regulators more time to review the transaction for national security concerns.
  4. December 21, 2017: According to Reuters, the judge overseeing the Justice Department’s bid to stop AT&T (T) from buying Time Warner (TWX) said that he would deny a request to tighten protections on confidential data.
  5. On December 22, 2017, BD (Becton, Dickinson and Company) (BDXissued a statement regarding the clearance by the U.S. Federal Trade Commission (FTC) for BD to acquire C. R. Bard (BCR).
  6. On December 21, 2017, AT&T (T), Time Warner (TWX), Corporate Sub and Merger LLC entered into a limited waiver and agreement, pursuant to which AT&T and Time Warner each waived, until June 21, 2018, its right to terminate the Merger Agreement due to a failure to complete their merger contemplated thereunder by April 22, 2018.

Closed Deals:

  1. The acquisition of Omega Protein Corporation (OME) by Cooke on December 19, 2017. It took 74 days for this deal to be completed.
  2. The acquisition of Planet Payment (PLPM) by Fintrax Group on December 20, 2017. It took 55 days for this deal to be completed.
  3. The acquisition of Ruby Tuesday (RT) by NRD Capital on December 21, 2017. It took 66 days for this deal to be completed.
  4. The acquisition of NewStar Financial (NEWS) by First Eagle Investment Management on December 22, 2017. It took 66 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 $3.20 04/01/2018 69.69% 262.23%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $13.20 12/31/2017 36.36% 2212.12%
SXE 11/01/2017 American Midstream Partners, LP (AMID) $2.14 $1.72 06/30/2018 24.19% 47.21%
BCEI 11/15/2017 SandRidge Energy (SD) $36.00 $30.06 03/31/2018 19.76% 75.13%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $25.23 06/30/2018 18.91% 36.90%
TWX 10/22/2016 AT&T, Inc. (T) $109.71 $92.38 06/21/2018 18.76% 38.46%
AET 12/03/2017 CVS Health (CVS) $206.50 $179.96 12/31/2018 14.75% 14.51%
YUME 09/05/2017 RhythmOne plc (RTHM.L) $4.07 $3.63 03/31/2018 12.18% 46.31%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $116.28 03/31/2018 10.08% 38.32%
ROSG 12/15/2017 Genoptix, Inc. (N/A) $0.60 $0.5500 03/31/2018 9.09% 34.56%

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 $3.20 3,732,988 04/01/2018 69.69% 262.23%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $13.20 156,327 12/31/2017 36.36% 2212.12%
+ SXE 11/01/2017 American Midstream Partners, LP (AMID) All Stock $815 million $2.14 $1.72 29,624 06/30/2018 24.19% 47.21%
+ BCEI 11/15/2017 SandRidge Energy (SD) Special Conditions $746 million $36.00 $30.06 174,422 03/31/2018 19.76% 75.13%
+ NXTM 08/07/2017 Fresenius Medical Care (N/A) All Cash $1.62 billion $30.00 $25.23 178,478 06/30/2018 18.91% 36.90%
+ TWX 10/22/2016 AT&T, Inc. (T) Collars $108.7 billion $109.71 $92.38 6,163,778 06/21/2018 18.76% 38.46%
+ AET 12/03/2017 CVS Health (CVS) Cash Plus Stock $77 billion $206.50 $179.96 1,781,973 12/31/2018 14.75% 14.51%
+ YUME 09/05/2017 RhythmOne plc (RTHM.L) Cash Plus Stock $102.36 million $4.07 $3.63 61,391 03/31/2018 12.18% 46.31%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $63.5 billion $128.00 $116.28 1,345,675 03/31/2018 10.08% 38.32%
+ ROSG 12/15/2017 Genoptix, Inc. (N/A) All Cash $10 million $0.60 $0.5500 253,948 03/31/2018 9.09% 34.56%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $32.08 935,667 03/31/2018 5.99% 22.76%
+ SNI 07/31/2017 Discovery Communications, Inc. (DISCK) Special Conditions $14.6 billion $90.00 $85.35 774,871 03/31/2018 5.45% 20.71%
+ RPRX 12/12/2017 Allergan plc (AGN) All Cash $13.26 million $0.67 $0.644 804,813 03/31/2018 4.04% 15.35%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $24.800 7,786 06/30/2018 3.83% 7.48%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $32.24 $31.06 3,601 12/31/2018 3.81% 3.75%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.89 374,597 12/31/2017 3.64% 221.44%
+ COL 09/04/2017 United Technologies Corp. (UTX) Special Conditions $30 billion $140.00 $135.09 583,102 09/30/2018 3.63% 4.75%
+ CAVM 11/20/2017 Marvell Technology Group Ltd. (MRVL) Cash Plus Stock $6 billion $87.89 $84.85 1,382,676 06/30/2018 3.58% 6.99%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $85.65 90,288 06/30/2018 3.04% 5.93%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $43.79 $42.50 419,214 12/31/2017 3.03% 184.07%
+ ACFC 11/17/2017 Ameris Bancorp (ABCB) Cash Plus Stock $145 million $9.75 $9.46 17,892 06/30/2018 3.02% 5.89%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $51.51 205,690 12/31/2018 2.89% 2.85%
+ GNRT 12/21/2017 Euronav NV (EURN) All Stock $2.08 billion $6.40 $6.22 1,508,473 06/30/2018 2.88% 5.63%
+ CALL 11/09/2017 B. Riley Financial, Inc. (RILY) All Cash $143 million $8.71 $8.475 37,677 06/30/2018 2.77% 5.41%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.87 970,863 12/31/2017 2.67% 162.33%
+ FNBG 12/12/2017 TriCo Bancshares (TCBK) All Stock $315.3 million $38.68 $37.70 16,747 06/30/2018 2.60% 5.08%
+ JASO 11/17/2017 JASO Holdings Limited, JASO Parent Limited and JASO Acquisition Limited (N/A) All Cash $677.43 $7.55 $7.38 265,128 03/31/2018 2.30% 8.76%
+ CBI 12/18/2017 McDermott International, Inc. (MDR) All Stock $3.73 billion $16.74 $16.37 3,680,387 06/30/2018 2.24% 4.37%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.06 21,624 01/08/2018 1.91% 49.75%
+ OA 09/18/2017 Northrop Grumman Corporation (NOC) All Cash $9.2 billion $134.50 $132.14 202,271 06/30/2018 1.79% 3.49%
+ SIGM 12/08/2017 Silicon Labs (SLAB) All Cash $185.98 million $7.05 $6.95 284,118 03/31/2018 1.44% 5.47%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) Special Conditions $3.1 billion $184.00 $181.54 29,420 03/15/2018 1.36% 6.18%
+ DYN 10/30/2017 Vistra Energy Corp. (VST) All Stock $12.3 billion $11.72 $11.57 3,582,553 06/30/2018 1.32% 2.58%
+ AFAM 11/16/2017 LHC Group, Inc. (LHCG) All Stock $1.06 billion $56.68 $55.95 326,012 06/30/2018 1.31% 2.56%
+ BGC 12/04/2017 Prysmian Group (N/A) All Cash $3 billion $30.00 $29.65 749,772 09/30/2018 1.18% 1.54%
+ CPLA 10/30/2017 Strayer Education, Inc. (STRA) All Stock $820.96 million $81.02 $80.10 62,067 09/30/2018 1.14% 1.50%
+ PNK 12/18/2017 Penn National Gaming, Inc. (PENN) Cash Plus Stock $5.85 billion $32.82 $32.49 540,898 12/31/2018 1.01% 0.99%
+ CPN 08/18/2017 Energy Capital Partners (N/A) All Cash $17.3 billion $15.25 $15.10 1,657,211 03/31/2018 0.99% 3.78%
+ CSBK 11/02/2017 Kearny Financial Corp. (KRNY) All Stock $408 million $17.51 $17.34 37,233 04/15/2018 0.97% 3.18%
+ BV 11/27/2017 entities affiliated with the global investment firm, Marlin Equity Partners (N/A) All Cash $398.69 million $5.50 $5.45 1,997,565 03/31/2018 0.92% 3.49%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $25.02 $24.80 469,521 01/31/2018 0.89% 8.73%
+ ENZY 10/29/2017 Frutarom (N/A) All Cash $156.88 million $11.90 $11.80 12,723 01/15/2018 0.85% 14.73%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $10.97 $10.90 650,180 03/31/2018 0.66% 2.51%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $55.80 $55.47 2,249 12/31/2017 0.60% 36.60%
+ RXDX 12/22/2017 Roche Holding AG (RHBBY) All Cash $1.7 billion $27.00 $26.85 38,308,628 06/30/2018 0.56% 1.09%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $37.81 $37.62 191,338 03/31/2018 0.50% 1.91%
+ AAAP 10/30/2017 Novartis AG (NVS) All Cash $3.9 billion $82.00 $81.60 255,649 03/31/2018 0.49% 1.86%
+ BWLD 11/28/2017 Arby�s Restaurant Group, Inc. (N/A) All Cash $2.9 billion $157.00 $156.25 435,796 03/31/2018 0.48% 1.83%
+ CCC 09/21/2017 Kuraray (N/A) All Cash $1.3 billion $21.50 $21.40 869,428 12/31/2017 0.47% 28.43%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $34.77 $34.66 45,049 01/15/2018 0.31% 5.46%
+ RGC 12/05/2017 Cineworld Group (N/A) All Cash $5.9 billion $23.00 $22.93 4,047,516 03/31/2018 0.31% 1.16%
+ BSF 08/22/2017 Arvest Bank (N/A) All Cash $391 million $10.28 $10.25 13,601 03/31/2018 0.29% 1.11%
+ CUDA 11/27/2017 Thoma Bravo, LLC (N/A) All Cash $1.29 billion $27.55 $27.47 991,028 02/28/2018 0.29% 1.64%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $333.22 $332.28 1,425,827 12/31/2017 0.28% 17.17%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $34.24 $34.15 237,484 01/01/2018 0.27% 14.06%
+ ALDW 11/08/2017 Delek US Holdings, Inc. (DK) All Stock $778.02 million $16.67 $16.63 245,699 03/31/2018 0.24% 0.91%
+ SBCP 08/14/2017 CenterState Banks, Inc. (CSFL) All Stock $176.7 million $23.55 $23.52 25,829 03/31/2018 0.13% 0.48%
+ SSNI 09/18/2017 Itron, Inc. (ITRI) All Cash $712 million $16.25 $16.23 302,288 03/31/2018 0.12% 0.47%
+ BSFT 10/23/2017 Cisco (CSCO) All Cash $1.9 billion $55.00 $54.95 458,066 03/31/2018 0.09% 0.35%
+ MGCD 11/27/2017 affiliates of Altus Capital Partners, Inc. (N/A) All Cash $52.63 million $11.03 $11.02 22,231 03/31/2018 0.09% 0.35%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $5.10 1,927,775 12/29/2017 0.00% 0.00%
+ ARCX 08/29/2017 Zenith (N/A) All Cash $632.96 million $16.50 $16.51 27,327 12/21/2017 -0.06% 5.53%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $43.20 $43.25 528,927 12/31/2017 -0.12% -7.45%
+ GIMO 10/26/2017 Elliott Management (N/A) All Cash $1.6 billion $38.50 $38.55 451,410 03/31/2018 -0.13% -0.49%
+ TIME 11/26/2017 Meredith Corporation (MDP) All Cash $2.8 billion $18.50 $18.55 248,900 03/31/2018 -0.27% -1.02%
+ DEL 10/23/2017 Potlatch Corporation (PCH) All Stock $1.18 billion $87.75 $88.01 201,499 06/30/2018 -0.30% -0.58%
+ LNCE 12/18/2017 Campbell Soup Company (CPB) All Cash $5.8 billion $50.00 $50.24 873,460 05/15/2018 -0.48% -1.24%
+ CAA 10/30/2017 Lennar Corporation (LEN) All Stock $9.3 billion $56.64 $57.10 956,878 03/31/2018 -0.81% -3.06%
+ BETR 12/18/2017 The Hershey Company (HSY) All Cash $1.6 billion $12.00 $12.14 938,632 03/31/2018 -1.15% -4.38%
+ EXAC 10/23/2017 TPG Capital (N/A) All Cash $737 million $49.25 $49.85 352,416 03/31/2018 -1.20% -4.58%
+ BYBK 09/27/2017 Old Line Bancshares, Inc. (OLBK) All Stock $128.6 million $12.05 $12.25 11,276 06/30/2018 -1.62% -3.16%
+ ENTL 12/07/2017 Stryker Corporation (SYK) All Cash $662 million $24.00 $24.56 97,503 06/30/2018 -2.28% -4.45%
+ BOBE 09/19/2017 Post Holdings, Inc. (POST) All Cash $1.53 billion $77.00 $78.88 253,967 01/31/2018 -2.38% -23.51%
+ IXYS 08/28/2017 Littelfuse, Inc. (LFUS) All Cash $655 million $23.00 $24.10 225,742 03/31/2018 -4.56% -17.35%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $116.70 1,310,290 01/31/2018 -5.74% -56.64%
+ KND 12/19/2017 TPG Capital, Welsh, Carson, Anderson & Stowe and Humana Inc. (HUM) All Cash $4.1 billion $9.00 $9.65 2,157,789 06/30/2018 -6.74% -13.15%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $7.93 177,252 12/31/2017 -11.73% -713.43%
+ FOX 12/14/2017 The Walt Disney Company (DIS) Special Conditions $66.1 billion $29.59 $34.72 1,411,576 09/30/2018 -14.78% -19.33%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $41.22 46,624 03/31/2018 -21.15% -80.43%

Disclaimer: I hold positions in Fortress Investment Group (FIG), Southcross Energy Partners (SXE), NewStar Financial (NEWS), Sparton Corporation (SPA) and Rosetta Genomics (ROSG). 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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