Merger Arbitrage Mondays – January 27, 2014

  • January 27, 2014

Merger Activity decreased last week with a trio of regional bank mergers, and one deal 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 201311
Total Number of Pending Deals
Cash Deals46
Stock Deals12
Stock & Cash Deals10
Total Number of Pending Deals68
Total Deal Size$124.18 billion

New Deals:

  1. The acquisition of ConnectOne Bancorp (CNOB) by Center Bancorp (CNBC) for $243 million in an all stock deal. Under the terms of the agrement, shareholders of ConnectOne Bancorp will receive 2.6 shares of Center common stock for each share of ConnectOne common stock.
  2. The acquisition of North Valley Bancorp (NOVB) by TriCo Bancshares (TCBK) for $178.4 million in an all stock deal. Under the terms of the agreement, shareholders of North Valley Bancorp will receive a fixed exchange ratio of 0.9433 shares of TriCo common stock in exchange for each share of North Valley common stock.
  3. The acquisition of Jefferson Bancshares (JFBI) by HomeTrust Bancshares (HTBI) for $51.2 million. Under the terms of the agreement, Jefferson shareholders will receive a total of $8.00 per share in merger consideration consisting of $4.00 in cash plus $4.00 in HomeTrust common stock. This represents approximately $51.2 million of aggregate transaction consideration.  The number of HomeTrust shares to be issued will be determined based on HomeTrust’s average closing stock price during the 10 trading days ending on the fifth trading day prior to the closing date, with the exchange ratio fixed at 0.2667 if the average closing price is equal to or less than $15.00 per share and at 0.2222 if the average closing price is equal to or greater than $18.00 per share. We are treating this as an all cash deal.

Deal Updates:

  1. On January 21, 2014, NuPathe (PATH) terminated its agreement and plan of merger with Endo Health Solutions (ENDP) and entered into an agreement and plan of merger with Teva Pharmaceuticals (TEVA) for $3.65 per share in cash. In addition to the upfront cash payment, NuPathe stockholders 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.

Closing Deals:

  1. The acquisition of Solta Medical (SLTM) by Valeant Pharmaceuticals International (VRX) on January 25, 2014. It took 40 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

WH02/21/2013WSP OCTG GROUP Ltd. (N/A)$3.20$2.1512/31/201348.84%-660.21%
TWGP01/06/2014ACP Re Ltd. (N/A)$3.00$2.5806/30/201416.28%38.58%
SYNM12/17/2013Renewable Energy Group, Inc. (REGI)$3.92$3.4403/31/201414.05%81.39%
HOME10/23/2013Cascade Bancorp (CACB)$16.42$14.5003/31/201413.26%76.83%
TBOW12/10/2013Trunkbow Merger Group Limited (N/A)$1.46$1.3503/31/20148.15%47.21%
CHC01/13/2014CPT Wyndham Holdings Ltd. (N/A)$3.51$3.3606/30/20144.46%10.58%
HWG06/05/2013Hallwood Financial Limited (N/A)$10.00$9.6009/30/20134.17%-12.78%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.7103/31/20144.09%23.72%
CAFI10/10/2013Huntington Bancshares Incorporated (HBAN)$6.84$6.5906/30/20143.83%9.09%
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$5.2609/30/20133.61%-11.08%

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

+WH02/21/2013WSP OCTG GROUP Ltd. (N/A)All Cash$893.6 million$3.20$2.1514,12012/31/201348.84%0.00%
+TWGP01/06/2014ACP Re Ltd. (N/A)All Cash$172.1$3.00$2.581,029,62506/30/201416.28%38.58%
+SYNM12/17/2013Renewable Energy Group, Inc. (REGI)All StockN/A$3.92$3.4487,90403/31/201414.05%81.39%
+HOME10/23/2013Cascade Bancorp (CACB)Cash Plus Stock$265.7 million$16.42$14.5030,08303/31/201413.26%76.83%
+TBOW12/10/2013Trunkbow Merger Group Limited (N/A)All CashN/A$1.46$1.35129,74203/31/20148.15%47.21%
+CHC01/13/2014CPT Wyndham Holdings Ltd. (N/A)All CashN/A$3.51$3.3666,26206/30/20144.46%10.58%
+HWG06/05/2013Hallwood Financial Limited (N/A)All CashN/A$10.00$9.60209/30/20134.17%0.00%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.7137,15603/31/20144.09%23.72%
+CAFI10/10/2013Huntington Bancshares Incorporated (HBAN)All Stock$97 million$6.84$6.59100,94406/30/20143.83%9.09%
+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$5.2671,42109/30/20133.61%0.00%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$9.35$9.0454,317,75901/31/20143.37%307.72%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$25.27$24.46134,06806/30/20143.32%7.86%
+PACT10/17/2013Blackstone (N/A)All Cash$625 million$7.30$7.08707,99103/31/20143.11%18.00%
+JFBI01/23/2014HomeTrust Bancshares, Inc. (HTBI)All Cash$51.2 million$8.00$7.7780,70406/30/20142.96%7.02%
+EQU12/09/2013Petroflow Energy Corporation (N/A)All Cash$230 million$5.43$5.28302,52503/31/20142.84%16.46%
+CIS09/18/2013Camelot Employee Scheme Inc. (N/A)All CashN/A$2.05$2.0036,41801/15/20142.50%0.00%
+RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)All Cash$910 million$18.50$18.10488,84606/30/20142.21%5.24%
+YONG09/23/2013Full Alliance International Limited (N/A)All Cash$339 million$6.69$6.55736,63903/31/20142.14%12.38%
+CNOB01/21/2014Center Bancorp, Inc. (CNBC)All Stock$243 million$47.79$46.8512,75509/30/20142.00%2.97%
+TSH01/13/2014IberiaBank Corp. (IBKC)All Stock$161 million$73.25$72.004,35406/30/20141.74%4.12%
+NICK12/18/2013an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A)All Cash$340 million$16.00$15.73133,71304/30/20141.72%6.74%
+UBNK11/15/2013Rockville Financial Inc. (RCKB)All Stock$369 million$19.18$18.9050,41706/30/20141.50%3.56%
+LSI12/16/2013Avago Technologies Limited (AVGO)All Cash$6.6 billion$11.15$11.009,347,52306/30/20141.36%3.23%
+CEDU12/31/2013ChinaEdu Holdings Limited (“Holdings”) and ChinaEdu Merger Sub Limited (“Merger Sub”) (N/A)All CashN/A$7.00$6.9123,65906/30/20141.27%3.02%
+VIFL12/06/2013Sterigenics International LLC (N/A)All CashN/A$7.23$7.151,84903/31/20141.12%6.48%
+KFN12/16/2013Kohlberg Kravis Roberts & Co. L.P. (KKR)All Stock$2.6 billion$12.53$12.401,469,98106/30/20141.01%2.40%
+NTS10/21/2013Tower Three Partners LLC (N/A)All Cash$83 million$2.00$1.9886,45403/31/20141.01%5.85%
+PACR01/06/2014XPO Logistics, Inc. (XPO)All Cash$296 million$9.00$8.91569,64406/30/20141.01%2.39%
+JNY12/19/2013Sycamore Partners (N/A)All Cash$1.2 billion$15.00$14.863,575,74706/30/20140.94%2.23%
+UNS12/11/2013Fortis, Inc. (N/A)All Cash$4.3 billion$60.25$59.711,382,23312/31/20140.90%0.98%
+BRD12/16/2013Primero Mining Corp. (PPP)All StockN/A$0.97$0.961839,36303/31/20140.88%5.12%
+FBMI08/15/2013Mercantile Bank Corp. (MBWM)Cash Plus Stock$151.5 million$19.01$18.854,86803/31/20140.85%4.92%
+CSE07/22/2013PacWest Bancorp (PACW)Cash Plus Stock$2.3 billion$14.67$14.551,781,30703/31/20140.82%4.74%
+PVR10/10/2013Regency Energy Partners LP (RGP)Cash Plus Stock$5.6 billion$27.49$27.29414,26403/31/20140.74%4.31%
+VTNC12/30/2013TransForce Inc. (N/A)All Cash$136 million$6.50$6.46375,34403/15/20140.62%4.81%
+BCSB06/14/2013F.N.B. Corporation (FNB)All Stock$79 million$25.73$25.5830012/31/20130.58%0.00%
+WBCO10/23/2013Heritage Financial Corp. (HFWA)Cash Plus Stock$265.1 million$18.01$17.9150,83206/30/20140.58%1.37%
+COLE10/23/2013American Realty Capital Properties, Inc. (ARCP)All Stock$11.2 billion$15.33$15.265,935,78906/30/20140.48%1.14%
+HITK08/27/2013Akorn, Inc. (AKRX)All Cash$640 million$43.50$43.3345,57803/31/20140.39%2.27%
+BRE12/19/2013Essex Property Trust Inc. (ESS)Cash Plus Stock$15.4 billion$57.66$57.45490,04603/31/20140.37%2.13%
+ZOLT09/26/2013Toray Industries, Inc. (N/A)All Cash$584 million$16.75$16.691,102,46701/31/20140.36%32.80%
+VCBI01/30/2013United Bankshares Inc. (UBSI)All Stock$490.6 million$16.13$16.0838,51801/31/20140.31%28.42%
+ICH10/28/2013RCS Capital Corporation (N/A)All Cash$52.5 million$7.25$7.2310,47803/31/20140.28%1.60%
+TOFC09/10/2013Old National Bancorp. (ONB)Cash Plus Stock$107.7 million$24.11$24.0588503/31/20140.27%1.54%
+FLOW09/25/2013American Industrial Partners (N/A)All Cash$200 million$4.05$4.04266,17601/31/20140.25%22.59%
+GIVN12/08/2013Covidien plc (COV)All Cash$860 million$30.00$29.95139,08903/31/20140.17%0.97%
+ANLY08/28/2013ACS Motion Control, Ltd. (ACSEF)All Cash$35 million$6.45$6.44N/A12/31/20130.16%0.00%
+CCIX12/20/2013Southwire Company (N/A)All Cash$786 million$26.25$26.21255,26003/31/20140.15%0.88%
+STSA09/11/2013Umpqua Holdings Corporation (UMPQ)Cash Plus Stock$2.0 billion$33.49$33.4599,14206/30/20140.13%0.32%
+GENT12/19/2013Jazz Pharmaceuticals Public Limited Company (JAZZ)All Cash$1 billion$57.00$56.95125,70203/31/20140.09%0.51%
+DRCO12/23/2013Engility Holdings, Inc. (EGL)All Cash$120.9 million$11.50$11.4948,13403/31/20140.09%0.50%
+VPHM11/11/2013Shire plc (SHPG)All Cash$4.2 billion$50.00$49.96N/A03/31/20140.08%0.46%
+MKTG12/20/2013Oracle Corporation (ORCL)All Cash$1.5 billion$27.00$26.981,471,81506/30/20140.07%0.18%
+ANEN11/04/2013an affiliate of The Veritas Capital Fund IV, L.P. (N/A)All Cash$381 million$28.00$27.9840,59903/31/20140.07%0.41%
+BEAM01/13/2014Suntory Holdings Limited (N/A)All Cash$16 billion$83.50$83.452,383,33706/30/20140.06%0.14%
+LIFE04/15/2013Thermo Fisher Scientific, Inc. (TMO)All Cash$13.6 billion$76.00$75.963,240,86101/31/20140.05%4.81%
+CGX10/24/2013R.R. Donnelley & Sons Company (RRD)Cash Plus Stock$620 million$65.03$65.0073,47503/31/20140.05%0.29%
+HTSI07/09/2013The Kroger Co. (KR)All Cash$2.5 billion$49.38$49.36396,10212/31/20130.04%0.00%
+CRTX09/16/2013Chiesi Farmaceutici (N/A)All CashN/A$9.50$9.5099,49503/31/20140.00%0.00%
+VCI12/18/2013Harland Clarke Holdings Corp. (N/A)All Cash$1.84 billion$34.04$34.041,425,93903/31/20140.00%0.00%
+TFCO12/20/2013Tufco Holdings, LLC (N/A)All CashN/A$6.07$6.076,50603/31/20140.00%0.00%
+MASC01/09/2014Zink Acquisition Holdings Inc. (N/A)All Cash$139 million$12.75$12.7572,89005/15/20140.00%0.00%
+XRTX12/23/2013Seagate Technology Public Limited Company (STX)All Cash$374 million$13.25$13.261,066,46206/30/2014-0.08%-0.18%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$23.02$23.0432,97806/30/2014-0.09%-0.22%
+CEC01/16/2014An affiliate of Apollo Global Management, LLC (APO)All Cash$1.3 billion$54.00$54.16593,50603/31/2014-0.30%-1.71%
+HPOL11/25/2013Nielsen Holdings N.V. (NLSN)All Cash$117 million$2.00$2.03202,56303/31/2014-1.48%-8.56%
+PATH12/16/2013Teva Pharmaceutical Industries (TEVA)All Cash$105 million$3.65$4.16281,35601/31/2014-12.26%-1118.69%
+LEAP07/12/2013AT&T, Inc. (T)All Cash$1.19 billion$15.00$17.45485,18703/31/2014-14.04%-81.34%

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria