Merger Arbitrage Mondays – January 1, 2018

Happy New Year and welcome to the first Merger Arbitrage Mondays post of 2018. Merger activity decreased last week with one new deal announced and ten 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 Pending Deals
Cash Deals 39
Stock Deals 15
Stock & Cash Deals 8
Collars 1
Special Conditions 6
Total Number of Pending Deals 68
Total Deal Size $438.39 billion

New Deals:

  1. The acquisition of Sucampo Pharmaceuticals (SCMP) by Mallinckrodt Public Limited Company (MNK) for $1.2 billion or $18.00 per share in cash.

Deal Updates:

  1. On December 27, 2017, Brigade Capital Management, the holder of a 5.8 percent stake in Kindred Healthcare (KND), said it opposes a takeover of the medical-facility operator by a group of investors including health insurer Humana (HUM), because the price is too low.
  2. On December 28, 2017, Bonanza Creek Energy (BCEI) announced that it has agreed to terminate its previously announced agreement to merge with SandRidge Energy (SD). After consultation with SandRidge’s largest shareholders, SandRidge’s Board of Directors concluded that it would not receive approval for the transaction at its planned special meeting.  An agreement between Bonanza Creek and SandRidge was then reached to mutually terminate the merger agreement.
  3. On December 28, 2017, at a special meeting of Stockholders, the shareholders of Calgon Carbon Corporation (CCCapproved the merger of the Company with Kuraray. The parties continue to target the first quarter of 2018 for the closing of the merger.
  4. December 31, 2017: We are extending the closing dates for the MoneyGram International (MGI) and Sinovac Biotech (SVA) deals to January 31, 2018 in the absence of any information from the companies about the status of the deal.

Closed Deals:

  1. The acquisition of Arc Logistics Partners (ARCX) by Zenith on December 26, 2017. It took 119 days for this deal to be completed.
  2. The acquisition of Fortress Investment Group (FIG) by SoftBank Group (SFTBY) on December 27, 2017. It took 316 days for this deal to be completed.
  3. The acquisition of Gigamon (GIMO) by Elliott Management on December 27, 2017. It took 62 days for this deal to be completed.
  4. The acquisition of MGC Diagnostics Corporation (MGCD) by affiliates of Altus Capital Partners on December 28, 2017. It took 31 days for this deal to be completed.
  5. The acquisition of TerraForm Global (GLBL) by Brookfield Asset Management (BAM) on December 28, 2017. It took 297 days for this deal to be completed.
  6. The acquisition of C. R. Bard (BCR) by Becton, Dickinson and Company (BDX) on December 29, 2017. It took 250 days for this deal to be completed.
  7. The acquisition of HSN (HSNI) by Liberty Interactive Corporation (QVCA) on December 29, 2017. It took 176 days for this deal to be completed.
  8. The acquisition of WashingtonFirst Bankshares (WFBI) by Sandy Spring Bancorp (SASR) on December 29, 2017. It took 227 days for this deal to be completed.
  9. The acquisition of Sunshine Bancorp (SBCP) by CenterState Banks (CSFL) on December 29, 2017. It took 137 days for this deal to be completed.
  10. The acquisition of Xenith Bankshares (XBKS) by Union Bankshares Corporation (UBSH) on December 29, 2017. It took 221 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 $3.11 04/01/2018 74.60% 302.54%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $13.18 01/31/2018 36.57% 444.94%
SXE 11/01/2017 American Midstream Partners, LP (AMID) $2.14 $1.69 06/30/2018 26.39% 53.51%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $24.23 06/30/2018 23.81% 48.29%
TWX 10/22/2016 AT&T, Inc. (T) $109.62 $91.47 06/21/2018 19.84% 42.36%
AET 12/03/2017 CVS Health (CVS) $205.74 $180.39 12/31/2018 14.05% 14.09%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $116.78 03/31/2018 9.61% 39.40%
ROSG 12/15/2017 Genoptix, Inc. (N/A) $0.60 $0.560 03/31/2018 7.14% 29.29%
AKRX 04/24/2017 Fresenius Kabi (N/A) $34.00 $32.23 03/31/2018 5.49% 22.52%
SNI 07/31/2017 Discovery Communications, Inc. (DISCK) $90.00 $85.38 03/31/2018 5.41% 22.19%

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 $3.11 5,916,289 04/01/2018 74.60% 302.54%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $13.18 178,588 01/31/2018 36.57% 444.94%
+ SXE 11/01/2017 American Midstream Partners, LP (AMID) All Stock $815 million $2.14 $1.69 321,583 06/30/2018 26.39% 53.51%
+ NXTM 08/07/2017 Fresenius Medical Care (N/A) All Cash $1.62 billion $30.00 $24.23 317,450 06/30/2018 23.81% 48.29%
+ TWX 10/22/2016 AT&T, Inc. (T) Collars $108.7 billion $109.62 $91.47 2,641,634 06/21/2018 19.84% 42.36%
+ AET 12/03/2017 CVS Health (CVS) Cash Plus Stock $77 billion $205.74 $180.39 1,296,247 12/31/2018 14.05% 14.09%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $63.5 billion $128.00 $116.78 2,988,118 03/31/2018 9.61% 39.40%
+ ROSG 12/15/2017 Genoptix, Inc. (N/A) All Cash $10 million $0.60 $0.560 136,513 03/31/2018 7.14% 29.29%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $32.23 1,627,174 03/31/2018 5.49% 22.52%
+ SNI 07/31/2017 Discovery Communications, Inc. (DISCK) Special Conditions $14.6 billion $90.00 $85.38 460,391 03/31/2018 5.41% 22.19%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.79 415,452 07/31/2018 4.70% 8.13%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $32.05 $30.86 8,231 12/31/2018 3.85% 3.86%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $24.80 2,656 06/30/2018 3.83% 7.77%
+ CAVM 11/20/2017 Marvell Technology Group Ltd. (MRVL) Cash Plus Stock $6 billion $86.71 $83.83 594,034 06/30/2018 3.44% 6.97%
+ COL 09/04/2017 United Technologies Corp. (UTX) Special Conditions $30 billion $140.00 $135.62 607,169 09/30/2018 3.23% 4.33%
+ CALL 11/09/2017 B. Riley Financial, Inc. (RILY) All Cash $143 million $8.71 $8.45 84,363 06/30/2018 3.08% 6.24%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $51.49 311,833 12/31/2018 2.93% 2.94%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $43.71 $42.47 605,496 03/31/2018 2.91% 11.93%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $85.84 165,946 06/30/2018 2.81% 5.69%
+ OA 09/18/2017 Northrop Grumman Corporation (NOC) All Cash $9.2 billion $134.50 $131.50 850,305 06/30/2018 2.28% 4.63%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.06 97,954 01/08/2018 1.91% 99.49%
+ FNBG 12/12/2017 TriCo Bancshares (TCBK) All Stock $315.3 million $37.10 $36.49 7,404 06/30/2018 1.68% 3.41%
+ ACFC 11/17/2017 Ameris Bancorp (ABCB) Cash Plus Stock $145 million $9.58 $9.43 12,741 06/30/2018 1.63% 3.31%
+ GNRT 12/21/2017 Euronav NV (EURN) All Stock $2.08 billion $6.73 $6.62 340,744 06/30/2018 1.61% 3.27%
+ RPRX 12/12/2017 Allergan plc (AGN) All Cash $13.26 million $0.67 $0.6601 1,135,800 03/31/2018 1.50% 6.15%
+ SIGM 12/08/2017 Silicon Labs (SLAB) All Cash $185.98 million $7.05 $6.95 303,687 03/31/2018 1.44% 5.90%
+ BGC 12/04/2017 Prysmian Group (N/A) All Cash $3 billion $30.00 $29.60 634,543 09/30/2018 1.35% 1.81%
+ PNK 12/18/2017 Penn National Gaming, Inc. (PENN) Cash Plus Stock $5.85 billion $33.16 $32.73 544,876 12/31/2018 1.31% 1.31%
+ CPLA 10/30/2017 Strayer Education, Inc. (STRA) All Stock $820.96 million $78.38 $77.40 38,950 09/30/2018 1.27% 1.70%
+ AFAM 11/16/2017 LHC Group, Inc. (LHCG) All Stock $1.06 billion $56.04 $55.35 235,665 06/30/2018 1.25% 2.54%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) Special Conditions $3.1 billion $184.00 $181.79 99,301 03/15/2018 1.22% 6.08%
+ JASO 11/17/2017 JASO Holdings Limited, JASO Parent Limited and JASO Acquisition Limited (N/A) All Cash $677.43 $7.55 $7.46 403,973 03/31/2018 1.21% 4.95%
+ RXDX 12/22/2017 Roche Holding AG (RHBBY) All Cash $1.7 billion $27.00 $26.70 2,602,936 06/30/2018 1.12% 2.28%
+ CCC 09/21/2017 Kuraray (N/A) All Cash $1.3 billion $21.50 $21.30 1,195,939 03/31/2018 0.94% 3.85%
+ BV 11/27/2017 entities affiliated with the global investment firm, Marlin Equity Partners (N/A) All Cash $398.69 million $5.50 $5.45 423,839 03/31/2018 0.92% 3.76%
+ DYN 10/30/2017 Vistra Energy Corp. (VST) All Stock $12.3 billion $11.94 $11.85 5,343,534 06/30/2018 0.80% 1.62%
+ CPN 08/18/2017 Energy Capital Partners (N/A) All Cash $17.3 billion $15.25 $15.13 4,518,950 03/31/2018 0.79% 3.25%
+ CBI 12/18/2017 McDermott International, Inc. (MDR) All Stock $3.73 billion $16.27 $16.14 3,728,200 06/30/2018 0.79% 1.60%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $24.48 $24.30 129,294 01/31/2018 0.72% 8.79%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $36.56 $36.31 47,017 03/31/2018 0.69% 2.83%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $10.72 $10.65 123,679 03/31/2018 0.65% 2.65%
+ CSBK 11/02/2017 Kearny Financial Corp. (KRNY) All Stock $408 million $17.21 $17.10 45,467 04/15/2018 0.64% 2.26%
+ BSF 08/22/2017 Arvest Bank (N/A) All Cash $391 million $10.28 $10.23 90,980 03/31/2018 0.49% 2.00%
+ AAAP 10/30/2017 Novartis AG (NVS) All Cash $3.9 billion $82.00 $81.62 537,459 03/31/2018 0.47% 1.91%
+ ENZY 10/29/2017 Frutarom (N/A) All Cash $156.88 million $11.90 $11.85 30,727 01/15/2018 0.42% 11.00%
+ BWLD 11/28/2017 Arby�s Restaurant Group, Inc. (N/A) All Cash $2.9 billion $157.00 $156.35 324,474 03/31/2018 0.42% 1.70%
+ SCMP 12/26/2017 Mallinckrodt Public Limited Company (MNK) All Cash $1.2 billion $18.00 $17.95 6,678,506 03/31/2018 0.28% 1.14%
+ TIME 11/26/2017 Meredith Corporation (MDP) All Cash $2.8 billion $18.50 $18.45 670,740 03/31/2018 0.27% 1.11%
+ BSFT 10/23/2017 Cisco (CSCO) All Cash $1.9 billion $55.00 $54.90 856,932 03/31/2018 0.18% 0.75%
+ CUDA 11/27/2017 Thoma Bravo, LLC (N/A) All Cash $1.29 billion $27.55 $27.50 1,093,660 02/28/2018 0.18% 1.14%
+ ALDW 11/08/2017 Delek US Holdings, Inc. (DK) All Stock $778.02 million $17.12 $17.09 133,018 03/31/2018 0.18% 0.73%
+ SSNI 09/18/2017 Itron, Inc. (ITRI) All Cash $712 million $16.25 $16.24 1,358,762 03/31/2018 0.06% 0.25%
+ RGC 12/05/2017 Cineworld Group (N/A) All Cash $5.9 billion $23.00 $23.01 3,005,054 03/31/2018 -0.04% -0.18%
+ BETR 12/18/2017 The Hershey Company (HSY) All Cash $1.6 billion $12.00 $12.01 331,490 03/31/2018 -0.08% -0.34%
+ LNCE 12/18/2017 Campbell Soup Company (CPB) All Cash $5.8 billion $50.00 $50.08 727,007 05/15/2018 -0.16% -0.44%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $53.04 $53.21 9,599 03/31/2018 -0.31% -1.28%
+ EXAC 10/23/2017 TPG Capital (N/A) All Cash $737 million $49.25 $49.45 38,797 03/31/2018 -0.40% -1.66%
+ CAA 10/30/2017 Lennar Corporation (LEN) All Stock $9.3 billion $55.97 $56.39 2,186,875 03/31/2018 -0.75% -3.07%
+ ENTL 12/07/2017 Stryker Corporation (SYK) All Cash $662 million $24.00 $24.39 170,294 06/30/2018 -1.60% -3.24%
+ DEL 10/23/2017 Potlatch Corporation (PCH) All Stock $1.18 billion $89.82 $91.55 206,234 06/30/2018 -1.89% -3.83%
+ BOBE 09/19/2017 Post Holdings, Inc. (POST) All Cash $1.53 billion $77.00 $78.82 477,654 01/31/2018 -2.31% -28.09%
+ BYBK 09/27/2017 Old Line Bancshares, Inc. (OLBK) All Stock $128.6 million $11.91 $12.300 6,677 06/30/2018 -3.14% -6.36%
+ IXYS 08/28/2017 Littelfuse, Inc. (LFUS) All Cash $655 million $23.00 $23.95 126,811 03/31/2018 -3.97% -16.27%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $117.09 1,413,007 01/31/2018 -6.06% -73.67%
+ YUME 09/05/2017 RhythmOne plc (RTHM.L) Cash Plus Stock $102.36 million $4.49 $4.78 383,849 03/31/2018 -6.07% -24.90%
+ KND 12/19/2017 TPG Capital, Welsh, Carson, Anderson & Stowe and Humana Inc. (HUM) All Cash $4.1 billion $9.00 $9.70 1,333,519 06/30/2018 -7.22% -14.63%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $7.88 87,450 01/31/2018 -11.17% -135.87%
+ FOX 12/14/2017 The Walt Disney Company (DIS) Special Conditions $66.1 billion $29.59 $34.12 1,394,442 09/30/2018 -13.28% -17.82%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $39.02 46,878 03/31/2018 -16.71% -68.53%

Disclaimer: I hold positions in Southcross Energy Partners (SXE), Sparton Corporation (SPA), Rosetta Genomics (ROSG) and Akorn (AKRX). 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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