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Merger Arbitrage Mondays – June 3, 2013

  • June 2, 2013

Merger activity increased last week with six new deals announced and one closing.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2013 67
Total Number of Pending Deals
Cash Deals 58
Stock Deals 18
Stock & Cash Deals 2
Total Number of Pending Deals 78
Total Deal Size $257.96 billion

New Deals:

  1. The acquisition of Omthera Pharmaceuticals (OMTH) by AstraZeneca (AZN) for $323 million or $12.70 per share in cash.
    In addition to the cash payment, each Omthera shareholder will receive Contingent Value Rights (CVRs) of up to approximately $4.70 per share, equating to approximately $120 million in total, if specified milestones related to Epanova are achieved, or if a milestone related to global net sales is achieved. This will bring the total potential acquisition cost to approximately $443 million.
  2. The acquisition of CapLease (LSE) by American Realty Capital Properties (ARCP) for $2.2 billion or $8.50 per share in cash.
  3. The acquisition of Stewart Enterprises (STEI) by Service Corp. International (SCI) for $1.4 billion or $13.25 per share in cash.
  4. The acquisition of Smithfield Foods (SFD) by Shuanghui International for $7.1 billion or $34.00 per share in cash.
  5. The acquisition of NV Energy (NVE) by MidAmerican Energy Holdings Company for $10 billion or $23.75 per share in cash.
  6. The acquisition of Lender Processing Services (LPS) by Fidelity National Financial (FNF) for $2.9 billion or $33.25 per share. Under the terms of the agreement, FNF’s shares of common stock have been valued at $25.489 per share (the “Reference Price”), representing a fixed exchange ratio of 0.65224 shares of FNF common stock for each share of LPS common stock. At closing, if FNF’s average common stock price is greater than $24.215, the exchange ratio remains fixed at 0.65224 per share of FNF common stock. If FNF’s average common stock price at closing is between $20.00 and $24.215 per share, FNF will increase the number of shares of FNF common stock to be received by LPS stockholders such that LPS stockholders receive a minimum of $15.794 per share in value on the stock portion of the consideration, or $32.419 per share in total. If FNF’s average common stock price at closing is less than $20.00, the exchange ratio will be fixed at 0.7897 per share of FNF common stock, in which event LPS will have a right to terminate the transaction. Additionally, on or before three trading days prior to the anticipated date of effectiveness of FNF’s registration statement on Form S-4, FNF has the option to increase the cash portion of the consideration from $16.625 per share of LPS common stock up to $33.25 per share of LPS common stock with a corresponding decrease in the stock portion of the merger consideration as provided for under the terms of the merger agreement, in which case the exchange ratio will be adjusted to reflect the new consideration mix. However, if FNF elects to increase the cash portion of the consideration and FNF’s average common stock price at closing is greater than $26.763, then the exchange ratio will be adjusted to reflect the increased value that would have been received at closing without any change in consideration mix. On account of these conditions, we are treating this as an all cash deal.

Updated Deals:

  1. On May 29, 2013, Dish (DISHraised its offer for Clearwire (CLWR) to $4.40 per share in cash, a 29% premium over Sprint’s (S) purchase price of $3.40 per share in cash.

Closed Deals:

  1. The acquisition of Cymer (CYMI) by ASML Holding NV (ASML) on May 30, 2013. It took 225 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

NYX 12/20/2012 IntercontinentalExchange, Inc. (ICE) $44.19 $40.23 12/31/2013 9.84% 17.02%
LEDR 05/08/2013 Trulia, Inc. (TRLA) $11.33 $10.70 09/30/2013 5.89% 18.06%
WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) $3.20 $3.05 06/30/2013 4.92% 66.48%
BRY 02/21/2013 LinnCo, LLC (LNCO) $45.36 $43.31 06/30/2013 4.74% 64.07%
PBTH 04/24/2013 Opko Health, Inc. (OPK) $6.58 $6.30 12/31/2013 4.41% 7.62%
MFLR 05/14/2013 Independent Bank Corp. (INDB) $18.62 $17.85 12/31/2013 4.30% 7.43%
VCBI 01/30/2013 United Bankshares Inc. (UBSI) $14.15 $13.60 09/30/2013 4.08% 12.51%
HCBK 08/27/2012 M&T Bank Corporation (MTB) $8.81 $8.50 01/31/2014 3.70% 5.58%
MEMS 04/23/2013 IDG-Accel China Capital II, L.P. (N/A) $4.23 $4.08 09/30/2013 3.68% 11.28%
NLP 12/27/2012 J.D. Nichols & Brian F. Lavin (N/A) $7.50 $7.24 06/30/2013 3.59% 48.55%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.


Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ NYX 12/20/2012 IntercontinentalExchange, Inc. (ICE) All Stock $8.2 billion $44.19 $40.23 1,788,553 12/31/2013 9.84% 17.02%
+ LEDR 05/08/2013 Trulia, Inc. (TRLA) All Cash $355 million $11.33 $10.70 456,043 09/30/2013 5.89% 18.06%
+ WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) All Cash $893.6 million $3.20 $3.05 15,574 06/30/2013 4.92% 66.48%
+ BRY 02/21/2013 LinnCo, LLC (LNCO) All Stock $4.3 billion $45.36 $43.31 1,086,642 06/30/2013 4.74% 64.07%
+ PBTH 04/24/2013 Opko Health, Inc. (OPK) All Stock $480 million $6.58 $6.30 252,561 12/31/2013 4.41% 7.62%
+ MFLR 05/14/2013 Independent Bank Corp. (INDB) All Stock $37.2 million $18.62 $17.85 861 12/31/2013 4.30% 7.43%
+ VCBI 01/30/2013 United Bankshares Inc. (UBSI) All Stock $490.6 million $14.15 $13.60 64,318 09/30/2013 4.08% 12.51%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $8.81 $8.50 4,081,865 01/31/2014 3.70% 5.58%
+ MEMS 04/23/2013 IDG-Accel China Capital II, L.P. (N/A) All Cash N $4.23 $4.08 331,261 09/30/2013 3.68% 11.28%
+ NLP 12/27/2012 J.D. Nichols & Brian F. Lavin (N/A) All Cash N/A $7.50 $7.24 60 06/30/2013 3.59% 48.55%
+ ASIA 05/13/2013 CITIC Capital Partners (N/A) All Cash $890 million $12.00 $11.59 159,209 09/30/2013 3.54% 10.85%
+ KCG 12/19/2012 GETCO Holding Company (N/A) All Cash $1.4 billion $3.75 $3.63 786,906 06/30/2013 3.31% 44.69%
+ SFD 05/29/2013 Shuanghui International (N/A) All Cash $7.1 billion $34.00 $32.94 11,395,084 12/31/2013 3.22% 5.57%
+ CITZ 05/13/2013 First Merchants Corporation (FRME) All Stock 114.7 million $10.76 $10.45 15,105 12/31/2013 3.00% 5.20%
+ WCRX 05/20/2013 Actavis, Inc. (ACT) All Stock $8.5 billion $19.73 $19.20 5,970,142 12/31/2013 2.74% 4.74%
+ LIFE 04/15/2013 Thermo Fisher Scientific, Inc. (TMO) All Cash $13.6 billion $76.00 $74.10 2,545,026 01/31/2014 2.56% 3.87%
+ WMS 01/31/2013 Scientific Games Corporation (SGMS) All Cash 1.5 billion $26.00 $25.35 287,648 12/31/2013 2.56% 4.44%
+ MPR 04/22/2013 CECO Environmental Corp. (CECE) All Cash $210 million $13.75 $13.43 57,924 09/30/2013 2.38% 7.31%
+ ARB 12/18/2012 Nielsen Holdings N.V. (NLSN) All Cash N/A $48.00 $46.91 129,483 09/30/2013 2.32% 7.13%
+ DELL 02/05/2013 Michael Dell, Dell�s Founder, Chairman and Chief Executive Officer, in partnership with global technology investment firm Silver Lake (N/A) All Cash $24.4 billion $13.65 $13.35 27,158,688 07/31/2013 2.25% 14.14%
+ BMC 05/06/2013 Bain Capital and Golden Gate Capital (N/A) All Cash $6.9 billion $46.25 $45.30 4,727,175 12/31/2013 2.10% 3.63%
+ PVFC 02/19/2013 F.N.B. Corporation (FNB) All Stock $106.4 million $3.92 $3.84 50,346 09/30/2013 1.97% 6.05%
+ STEI 05/29/2013 Service Corp. International (SCI) All Cash $1.4 billion $13.25 $13.00 2,565,079 09/30/2013 1.92% 5.90%
+ HOGS 11/26/2012 Chairman and CEO Xianfu Zhu (N/A) All Cash $418 million $13.50 $13.27 434,005 06/30/2013 1.73% 23.43%
+ JADE 03/22/2013 Flora Bloom Holdings & Flora Fragrance Holdings (N/A) All Cash N/A $2.00 $1.97 97,864 12/31/2013 1.52% 2.63%
+ IN 12/10/2012 Honeywell International Inc. (HON) All Cash $600 million $10.00 $9.86 361,401 06/30/2013 1.42% 19.19%
+ CMLP 05/06/2013 Inergy Midstream (NRGM) Cash Plus Stock N/A $25.09 $24.75 106,727 09/30/2013 1.39% 4.27%
+ NVE 05/29/2013 MidAmerican Energy Holdings Company (N/A) All Cash $10 billion $23.75 $23.44 20,764,344 03/31/2013 1.32% 0.00%
+ AQ 05/17/2013 Accenture plc (ACN) All Cash $316 million $13.00 $12.85 415,388 09/30/2013 1.17% 3.58%
+ ASCA 12/21/2012 Pinnacle Entertainment Inc. (PNK) All Cash $2.8 billion $26.50 $26.20 1,062,844 09/30/2013 1.15% 3.51%
+ SVN 02/28/2013 Keystone Lodging Holdings Limited (N/A) All Cash $688 million $13.80 $13.65 53,413 12/31/2013 1.10% 1.90%
+ MBND 05/22/2013 Goodman Networks (N/A) All Cash $116 million $3.25 $3.215 542,871 09/30/2013 1.09% 3.34%
+ OFI 05/15/2013 Bellisio Foods, Inc. (N/A) All Cash $80.9 million $5.00 $4.95 49,935 12/31/2013 1.01% 1.75%
+ PMTI 03/18/2013 Cynosure, Inc. (CYNO) All Cash $294 million $13.65 $13.53 111,047 09/30/2013 0.89% 2.72%
+ MEAD 05/17/2013 Jinghua Optics & Electronics Co., Ltd. (N/A) All Cash $4.5 million $3.45 $3.42 6,700 07/31/2013 0.88% 5.52%
+ MPAC 04/11/2013 Kevin T. Keane, Chairman of the Company, and Daniel G. Keane, President and Chief Executive Officer of the Company (N/A) All Cash N/A $8.40 $8.33 281 06/30/2013 0.84% 11.36%
+ ALC 02/26/2013 TPG (N/A) All Cash $278 million $12.00 $11.90 122,199 06/30/2013 0.84% 11.36%
+ EBIX 05/03/2013 The Goldman Sachs Group, Inc. (GS) All Cash $820 milion $20.00 $19.84 783,051 09/30/2013 0.81% 2.47%
+ ADY 03/04/2013 Diamond Infant Formula Holding Limited (N/A) All Cash $147 million $7.40 $7.35 23,733 06/30/2013 0.68% 9.20%
+ CXPO 04/30/2013 Contango Oil & Gas Company (MCF) All Stock $390 million $2.90 $2.88 73,255 09/30/2013 0.66% 2.04%
+ GDI 03/08/2013 Kohlberg Kravis Roberts & Co. L.P. (N/A) All Cash $3.9 billion $76.00 $75.50 898,823 09/30/2013 0.66% 2.03%
+ FFCH 02/20/2013 SCBT Financial Corporation (SCBT) All Stock $302.4 million $21.21 $21.07 89,903 09/30/2013 0.65% 1.98%
+ BKI 04/24/2013 Georgia-Pacific LLC (N/A) All Cash $1.5 billion $37.50 $37.27 459,384 09/30/2013 0.62% 1.89%
+ SDBT 05/20/2013 Genesys (N/A) All Cash $100.4 million $5.00 $4.97 47,631 07/31/2013 0.60% 3.80%
+ WRLS 04/29/2013 Avista Capital Partners (N/A) All Cash $253 million $12.61 $12.54 456,077 06/30/2013 0.56% 7.55%
+ NFP 04/15/2013 Madison Dearborn Partners, LLC (N/A) All Cash $1.3 billion $25.35 $25.21 860,891 09/30/2013 0.56% 1.70%
+ TRLG 05/10/2013 TowerBrook Capital Partners L.P. (N/A) All Cash $835 million $32.00 $31.84 680,879 09/30/2013 0.50% 1.54%
+ LPS 05/28/2013 Fidelity National Financial, Inc. (FNF) All Cash $2.9 billion $33.25 $33.09 1,266,502 12/31/2013 0.48% 0.84%
+ CHG 02/21/2012 Fortis Inc. (N/A) All Cash $1.5 billion $65.00 $64.73 46,005 06/30/2013 0.42% 5.64%
+ ROMA 12/19/2012 Investors Bancorp Inc. (ISBC) All Stock $113.5 million $17.12 $17.05 11,192 06/30/2013 0.38% 5.20%
+ FMFC 02/07/2013 Renasant Corp. (RNST) All Stock $118.8 million $15.31 $15.26 14,985 09/30/2013 0.33% 1.02%
+ PWER 04/22/2013 ABB Ltd. (ABB) All Cash $1 billion $6.35 $6.33 963,445 12/31/2013 0.32% 0.55%
+ LUFK 04/08/2013 General Electric Company (GE) All Cash $3.3 billion $88.50 $88.26 372,782 12/31/2013 0.27% 0.47%
+ HNZ 02/14/2013 Berkshire Hathaway and 3G Capital (N/A) All Cash $28 billion $72.50 $72.36 5,818,928 09/30/2013 0.19% 0.59%
+ FCFC 12/21/2012 Varde Partners Inc. (N/A) All Cash $225 million $10.00 $9.99 N/A 06/30/2013 0.10% 1.35%
+ CPTS 04/29/2013 Bayer HealthCare LLC (N/A) All Cash $1.1 billion $31.00 $30.98 449,910 06/30/2013 0.06% 0.87%
+ RUE 05/23/2013 Apax Partners (N/A) All Cash $1.1 billion $42.00 $41.99 639,735 12/31/2013 0.02% 0.04%
+ HOTT 03/07/2013 Sycamore Partners (N/A) All Cash $600 million $14.00 $14.00 3,134,771 06/30/2013 0.00% 0.00%
+ NTSP 02/19/2013 Total System Services, Inc. (TSS) All Cash $1.4 billion $16.00 $16.01 295,442 06/30/2013 -0.06% -0.84%
+ AIM 04/22/2013 TransDigm Group Incorporated (TDG) All Cash $39 million $7.75 $7.755 2,604 09/30/2013 -0.06% -0.20%
+ ACFC 02/26/2013 Bond Street Holdings (N/A) All Cash N/A $5.00 $5.01 4,505 06/30/2013 -0.20% -2.70%
+ FSCI 04/11/2013 Sinclair Broadcast Group Inc. (SBGI) All Cash $373.3 milliom $41.00 $41.11 27,888 09/30/2013 -0.27% -0.82%
+ WBSN 05/20/2013 Vista Equity Partners (N/A) All Cash $907 million $24.75 $24.85 860,625 09/30/2013 -0.40% -1.23%
+ AM 04/01/2013 Weiss Family (N/A) All Cash $878 million $18.20 $18.40 225,183 07/31/2013 -1.09% -6.84%
+ LSE 05/28/2013 American Realty Capital Properties, Inc. (ARCP) All Cash $2.2 billion $8.50 $8.62 3,407,994 09/30/2013 -1.39% -4.27%
+ SOMH 01/29/2013 Lakeland Bancorp Inc. (LBAI) All Stock $64.4 million $11.85 $12.07 N/A 09/30/2013 -1.79% -5.48%
+ STL 04/04/2013 Provident New York Bancorp (PBNY) All Stock $344 million $11.62 $11.95 61,744 12/31/2013 -2.80% -4.85%
+ OMTH 05/28/2013 AstraZeneca PLC (AZN) All Cash $323 million $12.70 $13.13 125,907 09/30/2013 -3.27% -10.04%
+ AACC 03/06/2013 Encore Capital Group, Inc. (ECPG) All Cash $200 million $6.50 $6.79 228,123 06/30/2013 -4.27% -57.74%
+ FCAL 11/06/2012 PacWest Bancorp (PACW) All Cash $231 million $8.00 $8.50 92,416 03/31/2013 -5.88% 33.55%
+ NFSB 03/05/2013 SI Financial Group Inc. (SIFI) All Stock $61.3 million $15.86 $16.88 N/A 09/30/2013 -6.07% -18.62%
+ SSRX 02/08/2013 Decade Sunshine Limited (N/A) All Cash $340 million $15.40 $16.59 N/A 06/30/2013 -7.17% -96.97%
+ PXP 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) Cash Plus Stock $6.9 billion $45.28 $48.90 N/A 06/30/2013 -7.41% -100.11%
+ OMX 02/20/2013 Office Depot, Inc. (ODP) All Stock $1.17 billion $11.86 $13.03 1,636,701 12/31/2013 -8.96% -15.49%
+ MMR 12/05/2012 Freeport-McMoRan Copper & Gold Inc. (FCX) All Cash 3.4 billion $14.75 $16.63 1,587,294 06/30/2013 -11.30% -152.83%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $1.84 $2.15 64,110 03/31/2013 -14.57% 83.08%
+ CLWR 12/17/2012 Sprint Nextel Corp. (S) All Cash $2.2 billion $3.40 $4.48 12,179,161 03/31/2013 -24.11% 137.49%
+ WAVE 08/02/2012 AT&T, Inc. (T) All Cash $600 million $1.00 $1.44 N/A 03/31/2013 -30.56% 174.26%