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Merger Arbitrage Mondays – December 23, 2013

  • December 23, 2013

Christmas came early to investment bankers with thirteen new mergers announced last week and six deals 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 2013175
Total Number of Deals Not Completed in 20135
Total Number of Pending Deals
Cash Deals48
Stock Deals12
Stock & Cash Deals10
Total Number of Pending Deals70
Total Deal Size$412.96 billion

New Deals:

  1. The acquisition of NuPathe (PATH) by Endo Health Solutions (ENDP) for $105 million or $2.85 per share in cash. In addition to the upfront cash payment, NuPathe shareholders will receive rights to receive additional cash payments of up to $3.15 per share if specified net sales of NuPathe’s migraine treatment ZECUITY are achieved over time.
  2. The acquisition of KKR Financial Holdings (KFN) by Kohlberg Kravis Roberts & Co. (KKR) for $2.6 billion in an all stock deal. Under the terms of the agreement, shareholders of KKR Financial Holdings will receive 0.51 common units of KKR for each common share of KFN.
  3. The acquisition of Brigus Gold Corp (BRD) by Primero Mining (PPP) in an all stock transaction. Under the terms of the agreement, shareholders of Brigus Gold Corp will be entitled to receive 0.175 of a Primero common share. In addition, Brigus shareholders will receive 0.1 of a common share in a newly incorporated company (“SpinCo”) for each Brigus common share. SpinCo will hold Brigus’ interests in the Goldfields project in Saskatchewan and the Ixhuatán and Huizopa projects in Mexico and will be capitalized with approximately C$10 million in cash.
  4. The acquisition of LSI Corporation (LSI) by Avago Technologies Limited (AVGO) for $6.6 billion or $11.15 per share in cash.
  5. The acquisition of Solta Medical (SLTM) by Valeant Pharmaceuticals International (VRX) for $250 million or $2.92 per share in cash.
  6. The acquisition of Syntroleum (SYNM) by Renewable Energy Group (REGI) in an all stock deal.Under the terms of the agreement, shareholders of Syntroleum Corporation will receive 0.3809 shares of REG common stock for each outstanding share of Syntroleum common stock.
  7. The acquisition of Valassis Communications (VCI) by Harland Clarke Holdings for $1.84 billion or $34.04 per share in cash.
  8. The acquisition of Nicholas Financial (NICK) by an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) for $340 million or $16.00 per share in cash.
  9. The acquisition of Gentium S.p.A (GENT) by Jazz Pharmaceuticals Public Limited Company (JAZZ) for $1 billion or $57.00 per share in cash.
  10. The acquisition of The Jones Group (JNY) by Sycamore Partners for $1.2 billion or $15.00 per share in cash.
  11. The acquisition of BRE Properties (BRE) by Essex Property Trust (ESS) for $15.4 billion in a cash plus stock transaction. Under the terms of the agreement, shareholders of BRE Properties will receive 0.2971 newly issued shares of Essex common stock plus $12.33 in cash.
  12. The acquisition of Coleman Cable (CCIX) by Southwire Company for $786 million or $26.25 per share in cash.
  13. The acquisition of Responsys (MKTG) by Oracle Corporation (ORCL) for $1.5 billion or $27.00 per share in cash.

Deal Updates:

  1. On December 17, 2014, Cooper Tire & Rubber Co.’s (CTB) appeal of a Delaware judge’s decision blocking the company’s bid to force a merger with Apollo Tyres Ltd. was dismissed by the state’s highest court.

Closed Deals:

  1. The acquisition of MAKO Surgical Corp. (MAKO) by Stryker Corporation (SYK) on December 17, 2013. It took 83 days for this deal to be completed.
  2. The acquisition of Berry Petroleum (BRY) by LinnCo (LNCO) on December 17, 2013. It took 299 days for this deal to be completed.
  3. The acquisition of Pioneer Southwest Energy Partners (PSE) by Pioneer Natural Resources Company (PXD) on December 18, 2013. It took 127 days for this deal to be completed.
  4. The acquisition of Elan Corporation (ELN) by Perrigo Company (PRGO) on December 18, 2013. It took 142 days for this deal to be completed.
  5. The acquisition of Mindspeed Technologies (MSPD) by M/A-Com Technology Solutions Holdings (MTSI) on December 18, 2013. It took 43 days for this deal to be completed.
  6. The acquisition of NV Energy (NVE) by MidAmerican Energy Holdings Company on December 20, 2013. It took 205 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

CTB06/12/2013Apollo Tyres Ltd (N/A)$35.00$22.2012/31/201357.66%2630.63%
SYNM12/17/2013Renewable Energy Group, Inc. (REGI)$4.29$3.3203/31/201429.18%108.70%
WH02/21/2013WSP OCTG GROUP Ltd. (N/A)$3.20$2.7912/31/201314.70%670.47%
TBOW12/10/2013Trunkbow Merger Group Limited (N/A)$1.46$1.2903/31/201413.18%49.08%
HOME10/23/2013Cascade Bancorp (CACB)$16.78$14.9403/31/201412.28%45.75%
ISS06/06/2013Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A)$5.45$5.0009/30/20139.00%-39.11%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6703/31/20146.59%24.53%
CIS09/18/2013Camelot Employee Scheme Inc. (N/A)$2.05$1.9401/15/20145.67%89.98%
ICH10/28/2013RCS Capital Corporation (N/A)$7.25$6.8803/31/20145.38%20.03%
YONG09/23/2013Full Alliance International Limited (N/A)$6.69$6.3603/31/20145.19%19.33%

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

+CTB06/12/2013Apollo Tyres Ltd (N/A)All Cash$2.5 billion$35.00$22.203,140,77212/31/201357.66%2630.63%
+SYNM12/17/2013Renewable Energy Group, Inc. (REGI)All StockN/A$4.29$3.32158,83803/31/201429.18%108.70%
+WH02/21/2013WSP OCTG GROUP Ltd. (N/A)All Cash$893.6 million$3.20$2.795,05712/31/201314.70%670.47%
+TBOW12/10/2013Trunkbow Merger Group Limited (N/A)All CashN/A$1.46$1.29121,60003/31/201413.18%49.08%
+HOME10/23/2013Cascade Bancorp (CACB)Cash Plus Stock$265.7 million$16.78$14.9465,22503/31/201412.28%45.75%
+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$5.45$5.00148,75109/30/20139.00%0.00%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.6746,20003/31/20146.59%24.53%
+CIS09/18/2013Camelot Employee Scheme Inc. (N/A)All CashN/A$2.05$1.9466,08801/15/20145.67%89.98%
+ICH10/28/2013RCS Capital Corporation (N/A)All Cash$52.5 million$7.25$6.8873,69603/31/20145.38%20.03%
+YONG09/23/2013Full Alliance International Limited (N/A)All Cash$339 million$6.69$6.36444,92203/31/20145.19%19.33%
+TPGI09/05/2013Parkway Properties Inc. (PKY)All Stock$1.2 billion$7.19$6.85N/A12/31/20135.01%228.46%
+CAFI10/10/2013Huntington Bancshares Incorporated (HBAN)All Stock$97 million$6.94$6.6382,83206/30/20144.74%9.16%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$9.61$9.207,642,86301/31/20144.43%41.50%
+BRD12/16/2013Primero Mining Corp. (PPP)All StockN/A$0.77$0.741,445,65603/31/20143.82%14.22%
+PACT10/17/2013Blackstone (N/A)All Cash$625 million$7.30$7.041,005,00103/31/20143.69%13.76%
+EVAC08/19/2013Atlas Copco Group (N/A)All Cash$1.6 billion$10.50$10.178,23603/31/20143.24%12.09%
+HWG06/05/2013Hallwood Financial Limited (N/A)All CashN/A$10.00$9.698,01009/30/20133.20%0.00%
+RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)All Cash$910 million$18.50$17.951,212,49806/30/20143.06%5.92%
+FLOW09/25/2013American Industrial Partners (N/A)All Cash$200 million$4.05$3.941,411,03901/31/20142.79%26.13%
+NTS10/21/2013Tower Three Partners LLC (N/A)All Cash$83 million$2.00$1.9565,49903/31/20142.56%9.55%
+KFN12/16/2013Kohlberg Kravis Roberts & Co. L.P. (KKR)All Stock$2.6 billion$12.48$12.243,657,26106/30/20141.96%3.78%
+LSI12/16/2013Avago Technologies Limited (AVGO)All Cash$6.6 billion$11.15$10.9423,911,16006/30/20141.92%3.71%
+TOFC09/10/2013Old National Bancorp. (ONB)Cash Plus Stock$107.7 million$25.19$24.724,60303/31/20141.92%7.14%
+VIFL12/06/2013Sterigenics International LLC (N/A)All CashN/A$7.23$7.1055303/31/20141.83%6.82%
+BCSB06/14/2013F.N.B. Corporation (FNB)All Stock$79 million$25.79$25.4378312/31/20131.42%64.95%
+WBCO10/23/2013Heritage Financial Corp. (HFWA)Cash Plus Stock$265.1 million$17.63$17.40107,07406/30/20141.33%2.56%
+UBNK11/15/2013Rockville Financial Inc. (RCKB)All Stock$369 million$19.39$19.14126,47306/30/20141.29%2.48%
+EQU12/09/2013Petroflow Energy Corporation (N/A)All Cash$230 million$5.43$5.37605,78503/31/20141.12%4.16%
+CGX10/24/2013R.R. Donnelley & Sons Company (RRD)Cash Plus Stock$620 million$65.26$64.61111,47303/31/20141.01%3.77%
+NICK12/18/2013an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A)All Cash$340 million$16.00$15.84514,13904/30/20141.01%2.88%
+UNS12/11/2013Fortis, Inc. (N/A)All Cash$4.3 billion$60.25$59.701,447,43612/31/20140.92%0.90%
+JNY12/19/2013Sycamore Partners (N/A)All Cash$1.2 billion$15.00$14.8747,901,44006/30/20140.87%1.69%
+STSA09/11/2013Umpqua Holdings Corporation (UMPQ)Cash Plus Stock$2.0 billion$33.83$33.55770,57106/30/20140.83%1.60%
+CSE07/22/2013PacWest Bancorp (PACW)Cash Plus Stock$2.3 billion$14.29$14.193,016,88803/31/20140.70%2.60%
+PNG10/22/2013Plains All American Pipeline, L.P. (PAA)All Stock$2 billion$22.50$22.35496,28312/31/20130.69%31.37%
+BRE12/19/2013Essex Property Trust Inc. (ESS)Cash Plus Stock$15.4 billion$54.55$54.191,805,97503/31/20140.67%2.50%
+SCR08/28/2013Simcere Holding Limited (N/A)All Cash$495 million$9.66$9.6066,80712/31/20130.63%28.52%
+LIFE04/15/2013Thermo Fisher Scientific, Inc. (TMO)All Cash$13.6 billion$76.00$75.651,475,18601/31/20140.46%4.33%
+VPHM11/11/2013Shire plc (SHPG)All Cash$4.2 billion$50.00$49.793,171,84603/31/20140.42%1.57%
+ASIA05/13/2013CITIC Capital Partners (N/A)All Cash$890 million$12.00$11.951,974,95112/31/20130.42%19.09%
+PVR10/10/2013Regency Energy Partners LP (RGP)Cash Plus Stock$5.6 billion$24.98$24.90656,97803/31/20140.34%1.25%
+VCBI01/30/2013United Bankshares Inc. (UBSI)All Stock$490.6 million$17.23$17.18131,06001/31/20140.29%2.69%
+HITK08/27/2013Akorn, Inc. (AKRX)All Cash$640 million$43.50$43.40153,65903/31/20140.23%0.86%
+SNTS11/07/2013Salix Pharmaceuticals Ltd. (SLXP)All Cash$2.6 billion$32.00$31.932,548,49901/01/20140.22%8.89%
+SPRD07/12/2013Tsinghua Unigroup Ltd. (N/A)All Cash$1.78 billion$31.00$30.94406,69509/30/20130.19%0.00%
+ANEN11/04/2013an affiliate of The Veritas Capital Fund IV, L.P. (N/A)All Cash$381 million$28.00$27.9578,82003/31/20140.18%0.67%
+ANLY08/28/2013ACS Motion Control, Ltd. (ACSEF)All Cash$35 million$6.45$6.44N/A12/31/20130.16%7.08%
+STEI05/29/2013Service Corp. International (SCI)All Cash$1.4 billion$13.25$13.23741,48110/16/20130.15%0.00%
+STEL06/10/2013Union First Market Bankshares Corporation (UBSH)All Stock$445.1 million$24.38$24.34109,25001/01/20140.15%6.12%
+HTSI07/09/2013The Kroger Co. (KR)All Cash$2.5 billion$49.38$49.31648,89612/31/20130.14%6.48%
+GIVN12/08/2013Covidien plc (COV)All Cash$860 million$30.00$29.9772,89103/31/20140.10%0.37%
+BLC06/13/2013Gannett Co., Inc. (GCI)All Cash$2.2 billion$13.75$13.741,120,78512/31/20130.07%3.32%
+ZOLT09/26/2013Toray Industries, Inc. (N/A)All Cash$584 million$16.75$16.74236,19101/31/20140.06%0.56%
+TUC10/15/2013CSC ServiceWorks, Inc. (N/A)All Cash$524 million$21.25$21.2475,37006/30/20140.05%0.09%
+CRTX09/16/2013Chiesi Farmaceutici (N/A)All CashN/A$9.50$9.5082,41103/31/20140.00%0.00%
+INOC11/15/2013an affiliate of Sterling Partners (N/A)All CashN/A$8.20$8.207,09903/31/20140.00%0.00%
+EIHI09/24/2013ProAssurance Corporation (PRA)All Cash$205 million$24.50$24.5535,08201/01/2014-0.20%-8.26%
+COLE10/23/2013American Realty Capital Properties, Inc. (ARCP)All Stock$11.2 billion$13.77$13.802,911,65106/30/2014-0.21%-0.41%
+GENT12/19/2013Jazz Pharmaceuticals Public Limited Company (JAZZ)All Cash$1 billion$57.00$57.223,082,84103/31/2014-0.38%-1.43%
+HPOL11/25/2013Nielsen Holdings N.V. (NLSN)All Cash$117 million$2.00$2.0169,90003/31/2014-0.50%-1.85%
+CCIX12/20/2013Southwire Company (N/A)All Cash$786 million$26.25$26.401,587,77203/31/2014-0.57%-2.12%
+SLTM12/16/2013Valeant Pharmaceuticals International, Inc. (VRX)All Cash$250 million$2.92$2.962,283,91203/31/2014-1.35%-5.03%
+MKTG12/20/2013Oracle Corporation (ORCL)All Cash$1.5 billion$27.00$27.4025,161,28006/30/2014-1.46%-2.82%
+VCI12/18/2013Harland Clarke Holdings Corp. (N/A)All Cash$1.84 billion$34.04$34.602,415,13803/31/2014-1.62%-6.03%
+VTNC12/09/2013Manitoulin Transport Inc. (N/A)All Cash$128 million$6.00$6.1449,22503/31/2014-2.28%-8.49%
+FBMI08/15/2013Mercantile Bank Corp. (MBWM)Cash Plus Stock$151.5 million$19.91$20.7982,75103/31/2014-4.23%-15.77%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$24.32$25.99203,70506/30/2014-6.41%-12.38%
+LPS05/28/2013Fidelity National Financial, Inc. (FNF)All Cash$2.9 billion$33.25$36.492,010,69712/31/2013-8.88%-405.11%
+PATH12/16/2013Endo Health Solutions Inc. (ENDP)All Cash$105 million$2.85$3.24372,16001/31/2014-12.04%-112.65%
+LEAP07/12/2013AT&T, Inc. (T)All Cash$1.19 billion$15.00$17.36986,65903/31/2014-13.59%-50.63%

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