×

Subscribe Today

Get our free articles delivered directly to your email!

Continue reading

Merger Arbitrage Mondays – August 5, 2013

  • August 5, 2013

Merger activity increased last week with five new deals announced and two 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 201398
Total Number of Deals Not Completed in 20132
Total Number of Pending Deals
Cash Deals50
Stock Deals19
Stock & Cash Deals4
Total Number of Pending Deals73
Total Deal Size$306.37 billion

New Deals:

  1. The acquisition of Elan Corporation (ELN) by Perrigo Company (PRGO) for $8.6 billion in a cash plus stock deal. Upon completion of the merger, shareholders of Elan will receive $6.25 per share in cash and 0.07636 shares of New Perrigo for each Elan share.
  2. The acquisition of Saks Incorporated (SKS) by Hudson’s Bay Company for $2.9 billion. Upon completion of the merger, shareholders of Saks will receive $16.00 per share in cash.
  3. The acquisition of Trius Therapeutics (TSRX) by Cubist Pharmaceuticals (CBST) for $707 million or $13.50 per share in cash.
    In addition to the upfront cash payment, each Trius stockholder will receive one Contingent Value Right (CVR), entitling the holder to receive an additional cash payment of up to $2.00 for each share they own if certain commercial sales milestones are
    achieved.
  4. The acquisition of Optimer Pharmaceuticals (OPTR) by Cubist Pharmaceuticals (CBST) for $535 million or $10.75 per share in cash. In addition to the upfront cash payment, each stockholder of Optimer will receive a Contingent Value Right (CVR), which is expected to be publicly traded, entitling the holder to receive an additional one-time cash payment of up to $5.00 for each share they own.
  5. Omnicom Group (OMC) and Publicis Group announced a merger of equals on July 28, 2013 to create Publicis Omnicom Group. Under the terms of the agreement, shareholders of Publicis Groupe and Omnicom, after special dividends, will each hold approximately 50% of the equity of Publicis Omnicom Group. Publicis Groupe shareholders will receive one newly issued ordinary share of Publicis Omnicom Group for each Publicis Groupe share they own, together with a special dividend of €1.00 per share. Omnicom shareholders will receive 0.813 newly issued ordinary shares of Publicis Omnicom Group for each Omnicom share they own, together with a special dividend of $2.00 per share. In addition, Omnicom shareholders will receive up to two regular quarterly dividends of $0.40 per share if declared and the record date occurs prior to closing. We are not entering this deal in our database since the values can be determined only after the formation of Publicis Omnicom Group.

Closed Deals:

  1. The acquisition of Gardner Denver (GDI) by Kohlberg Kravis Roberts & Co. L.P. on July 30, 2013. It took 144 days for this deal to be completed.
  2. The acquisition of True Religion Apparel (TRLG) by TowerBrook Capital Partners L.P. on July 30, 2013. It took 81 days for this deal to be completed.

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

NYX12/20/2012IntercontinentalExchange, Inc. (ICE)$48.64$43.1812/31/201312.64%31.16%
ISS06/06/2013Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A)$5.85$5.2509/30/201311.43%74.49%
PBTH04/24/2013Opko Health, Inc. (OPK)$7.48$6.9512/31/20137.67%18.92%
WH02/21/2013WSP OCTG GROUP Ltd. (N/A)$3.20$2.9906/30/20137.02%-71.21%
MFLR05/14/2013Independent Bank Corp. (INDB)$21.32$19.9312/31/20136.96%17.17%
BCSB06/14/2013F.N.B. Corporation (FNB)$26.79$25.3012/31/20135.89%14.53%
HWG06/05/2013Hallwood Financial Limited (N/A)$10.00$9.6009/30/20134.17%27.16%
CLP06/03/2013Mid-America Apartment Communities Inc. (MAA)$24.50$23.5609/30/20133.99%26.01%
ARB12/18/2012Nielsen Holdings N.V. (NLSN)$48.00$46.2009/30/20133.90%25.39%
CTB06/12/2013Apollo Tyres Ltd (N/A)$35.00$33.7712/31/20133.64%8.98%

List of all pending deals:

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


SymbolAnnounced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

VolumeClosing

Date

ProfitAnnu.

Profit

+NYX12/20/2012IntercontinentalExchange, Inc. (ICE)All Stock$8.2 billion$48.64$43.181,242,06912/31/201312.64%31.16%
+ISS06/06/2013Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A)All CashN/A$5.85$5.25714,33509/30/201311.43%74.49%
+PBTH04/24/2013Opko Health, Inc. (OPK)All Stock$480 million$7.48$6.95327,26812/31/20137.67%18.92%
+WH02/21/2013WSP OCTG GROUP Ltd. (N/A)All Cash$893.6 million$3.20$2.9940,09506/30/20137.02%0.00%
+MFLR05/14/2013Independent Bank Corp. (INDB)All Stock$37.2 million$21.32$19.934,05312/31/20136.96%17.17%
+BCSB06/14/2013F.N.B. Corporation (FNB)All Stock$79 million$26.79$25.303,75712/31/20135.89%14.53%
+HWG06/05/2013Hallwood Financial Limited (N/A)All CashN/A$10.00$9.601,30009/30/20134.17%27.16%
+CLP06/03/2013Mid-America Apartment Communities Inc. (MAA)All Cash$8.6 billion$24.50$23.56744,75609/30/20133.99%26.01%
+ARB12/18/2012Nielsen Holdings N.V. (NLSN)All CashN/A$48.00$46.20141,93309/30/20133.90%25.39%
+CTB06/12/2013Apollo Tyres Ltd (N/A)All Cash$2.5 billion$35.00$33.77402,88712/31/20133.64%8.98%
+CSE07/22/2013PacWest Bancorp (PACW)Cash Plus Stock$2.3 billion$12.69$12.271,921,89403/31/20143.39%5.20%
+SPRD07/12/2013Tsinghua Unigroup Ltd. (N/A)All Cash$1.78 billion$31.00$30.001,909,89809/30/20133.33%21.73%
+NLP12/27/2012J.D. Nichols & Brian F. Lavin (N/A)All CashN/A$7.50$7.267,24706/30/20133.31%0.00%
+ASIA05/13/2013CITIC Capital Partners (N/A)All Cash$890 million$12.00$11.6272,93609/30/20133.27%21.31%
+OMX02/20/2013Office Depot, Inc. (ODP)All Stock$1.17 billion$11.86$11.50923,22912/31/20133.16%7.78%
+VCBI01/30/2013United Bankshares Inc. (UBSI)All Stock$490.6 million$15.67$15.2451,47309/30/20132.81%18.28%
+CITZ05/13/2013First Merchants Corporation (FRME)All Stock114.7 million$12.30$12.008,66612/31/20132.54%6.26%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.01$9.774,120,34601/31/20142.45%5.00%
+SHFL07/16/2013Bally Technologies, Inc. (BYI)All Cash$1.3 billion$23.25$22.75267,13206/15/20132.20%0.00%
+ELN07/29/2013Perrigo Company (PRGO)Cash Plus Stock$8.6 billion$16.05$15.72N/A12/31/20132.12%5.24%
+SFD05/29/2013Shuanghui International (N/A)All Cash$7.1 billion$34.00$33.332,272,79912/31/20132.01%4.96%
+STEL06/10/2013Union First Market Bankshares Corporation (UBSH)All Stock$445.1 million$21.84$21.4426,34301/01/20141.89%4.62%
+MBND05/22/2013Goodman Networks (N/A)All Cash$116 million$3.25$3.19145,07209/30/20131.88%12.26%
+MEMS04/23/2013IDG-Accel China Capital II, L.P. (N/A)All CashN$4.23$4.1625,72009/30/20131.68%10.97%
+CMLP05/06/2013Inergy Midstream (NRGM)Cash Plus StockN/A$26.71$26.3051,88809/30/20131.56%10.16%
+LIFE04/15/2013Thermo Fisher Scientific, Inc. (TMO)All Cash$13.6 billion$76.00$74.851,059,81601/31/20141.54%3.13%
+PVFC02/19/2013F.N.B. Corporation (FNB)All Stock$106.4 million$4.39$4.329,43909/30/20131.52%9.90%
+NFSB03/05/2013SI Financial Group Inc. (SIFI)All Stock$61.3 million$17.40$17.181,20109/30/20131.27%8.28%
+CXPO04/30/2013Contango Oil & Gas Company (MCF)All Stock$390 million$3.23$3.19253,64409/30/20131.20%7.80%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$22.68$22.4292,26206/30/20141.18%1.31%
+NAFC07/22/2013Spartan Stores Inc. (SPTN)All Stock$1.3 billion$23.80$23.56107,41512/31/20131.00%2.47%
+STEI05/29/2013Service Corp. International (SCI)All Cash$1.4 billion$13.25$13.12618,29609/30/20130.99%6.46%
+FFEX07/15/2013Duff Brothers Capital Corporation (N/A)All Cash$38.2 million$2.10$2.08210,38109/15/20130.96%8.56%
+FIRE07/23/2013Cisco Systems, Inc. (CSCO)All Cash$2.7 billion$76.00$75.36722,85912/31/20130.85%2.09%
+MPAC04/11/2013Kevin T. Keane, Chairman of the Company, and Daniel G. Keane, President and Chief Executive Officer of the Company (N/A)All CashN/A$8.40$8.3312106/30/20130.84%0.00%
+IN12/10/2012Honeywell International Inc. (HON)All Cash$600 million$10.00$9.92138,32606/30/20130.81%0.00%
+STL04/04/2013Provident New York Bancorp (PBNY)All Stock$344 million$14.03$13.9249,24012/31/20130.76%1.88%
+WMS01/31/2013Scientific Games Corporation (SGMS)All Cash1.5 billion$26.00$25.82585,18212/31/20130.70%1.72%
+LPS05/28/2013Fidelity National Financial, Inc. (FNF)All Cash$2.9 billion$33.25$33.02422,13612/31/20130.70%1.72%
+BKI04/24/2013Georgia-Pacific LLC (N/A)All Cash$1.5 billion$37.50$37.27177,79309/30/20130.62%4.02%
+WCRX05/20/2013Actavis, Inc. (ACT)All Stock$8.5 billion$21.74$21.614,588,56812/31/20130.61%1.51%
+MPR04/22/2013CECO Environmental Corp. (CECE)All Cash$210 million$13.75$13.67135,14009/30/20130.59%3.81%
+BMC05/06/2013Bain Capital and Golden Gate Capital (N/A)All Cash$6.9 billion$46.25$46.001,282,92112/31/20130.54%1.34%
+DELL02/05/2013Michael 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$13.75$13.68107,597,79207/31/20130.51%0.00%
+VHS06/24/2013Tenet Healthcare Corp. (THC)All Cash$4.3 billion$21.00$20.9079,56112/31/20130.48%1.18%
+HTSI07/09/2013The Kroger Co. (KR)All Cash$2.5 billion$49.38$49.17879,28912/31/20130.43%1.05%
+RUE05/23/2013Apax Partners (N/A)All Cash$1.1 billion$42.00$41.8364,02312/31/20130.41%1.00%
+KEYN06/24/2013Thoma Bravo (N/A)All Cash$369 million$20.00$19.9488,17109/30/20130.30%1.96%
+STEC06/24/2013Western Digital Corporation (WDC)All Cash$340 million$6.85$6.83512,69412/31/20130.29%0.72%
+ROMA12/19/2012Investors Bancorp Inc. (ISBC)All Stock$113.5 million$19.21$19.1613,47406/30/20130.26%0.00%
+MFB07/24/2013Hanesbrands Inc. (HBI)All Cash$575 million$23.50$23.44196,08512/31/20130.26%0.63%
+OFI05/15/2013Bellisio Foods, Inc. (N/A)All Cash$80.9 million$5.00$4.994,41412/31/20130.20%0.49%
+ASCA12/21/2012Pinnacle Entertainment Inc. (PNK)All Cash$2.8 billion$26.50$26.46179,32609/30/20130.15%0.99%
+LSE05/28/2013American Realty Capital Properties, Inc. (ARCP)All Cash$2.2 billion$8.50$8.49798,55909/30/20130.12%0.77%
+FCFC12/21/2012Varde Partners Inc. (N/A)All Cash$225 million$10.00$9.99N/A06/30/20130.10%0.00%
+FMFC02/07/2013Renasant Corp. (RNST)All Stock$118.8 million$17.50$17.4821,96409/30/20130.09%0.57%
+NVE05/29/2013MidAmerican Energy Holdings Company (N/A)All Cash$10 billion$23.75$23.731,318,46903/31/20140.08%0.13%
+JADE03/22/2013Flora Bloom Holdings & Flora Fragrance Holdings (N/A)All CashN/A$2.00$2.00N/A12/31/20130.00%0.00%
+SKS07/29/2013Hudson’s Bay Company (N/A)All Cash$2.9 billion$16.00$16.141,395,47912/31/2013-0.87%-2.14%
+FSCI04/11/2013Sinclair Broadcast Group Inc. (SBGI)All Cash$373.3 milliom$41.00$41.41225,59809/30/2013-0.99%-6.45%
+ALCS07/25/2013Argonne Capital Group LLC (N/A)All Cash$47 million$14.00$14.1514,35512/31/2013-1.06%-2.61%
+ASI06/03/2013Fairfax Financial Holdings Limited (N/A)All Cash$306 million$29.25$29.85127,99512/31/2013-2.01%-4.96%
+TSRX07/30/2013Cubist Pharmaceuticals Inc. (CBST)All Cash$707 million$13.50$13.83N/A12/31/2013-2.39%-5.88%
+BLC06/13/2013Gannett Co., Inc. (GCI)All Cash$2.2 billion$13.75$14.221,244,08712/31/2013-3.31%-8.15%
+LVB07/01/2013Kohlberg & Company (N/A)All Cash$438 million$35.00$36.2120,81509/30/2013-3.34%-21.78%
+AM04/01/2013Weiss Family (N/A)All Cash$878 million$18.20$18.98102,62407/31/2013-4.11%300.00%
+LEAP07/12/2013AT&T, Inc. (T)All Cash$1.19 billion$15.00$16.611,557,81704/30/2013-9.69%36.47%
+LEDR05/08/2013Trulia, Inc. (TRLA)All Cash$355 million$11.33$12.81248,48909/30/2013-11.55%-75.30%
+BRY02/21/2013LinnCo, LLC (LNCO)All Stock$4.3 billion$36.89$41.91569,07709/30/2013-11.98%-78.11%
+OPTR07/30/2013Cubist Pharmaceuticals Inc. (CBST)All Cash$535 million$10.75$12.51N/A12/31/2013-14.07%-34.70%
+VRTA05/31/2012Vestin Realty Mortgage II, Inc. (VRTB)All StockN/A$1.35$1.605,80003/31/2013-15.44%44.37%
+MEAD05/17/2013Jinghua Optics & Electronics Co., Ltd. (N/A)All Cash$4.5 million$3.45$4.180610007/31/2013-17.48%1275.75%
+WAVE08/02/2012AT&T, Inc. (T)All Cash$600 million$1.00$1.44N/A03/31/2013-30.56%87.82%