Merger Arbitrage Mondays – November 12, 2012
Merger activity decreased last week with five new deals announced and five closing.
You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.
Deal Statistics:
New Deals:
- The acquisition of Metropolitan Health Networks (MDF) by Humana (HUM) for $850 million or $11.25 per share in cash.
- The acquisition of KBW Inc. (KBW) by Stifel Financial Corp. (SF). Under the terms of the agreement, KBW shareholders will receive $17.50 per share, comprised of $10.00 per share in cash and $7.50 per share in Stifel common stock. The stock component of the consideration is fixed at $7.50 per share, subject to a collar, provided that the volume weighted average closing price of Stifel common stock for the ten days prior to closing is between $29.00 and $35.00 per share. If the volume weighted average price rises above $35.00 per share, the exchange ratio will be fixed at 0.2143 shares of Stifel common stock for each share of KBW, and if it falls below $29.00 per share, the exchange ratio will be fixed at 0.2586 shares of Stifel common stock for each share of KBW. Because the stock component is fixed at $7.50, subject to a collar, we are going to treat this as an all cash deal for now.
- The acquisition of First California Financial Group (FCAL) by PacWest Bancorp (PACW) for $231 million or $8.00 per share in an all stock deal. The number of shares of PacWest common stock deliverable for each share of First California common stock will be determined based on an average price of PacWest common stock over a measuring period prior to the receipt of regulatory approval, and will fluctuate if such average price is between $20.00 and $27.00 and will be fixed if such average price is below $20.00 or above $27.00. Based on PacWest’s closing stock price of $22.27 on Monday, November 5, 2012, First California stockholders would have received 0.3592 of a share of PacWest common stock for each share of First California common stock. On account of this variable ratio subject to a collar, we are going to treat this as an all cash deal for now.
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