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Merger Arbitrage Mondays – May 5, 2014

  • May 4, 2014

Merger Activity increased last week with six new mergers announced, and eight 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 201459
Total Number of Pending Deals
Cash Deals39
Stock Deals14
Stock & Cash Deals10
Total Number of Pending Deals63
Total Deal Size$246.08 billion

New Deals:

  1. The acquisition of Susser Holdings Corporation (SUSS) by Energy Transfer Partners (ETP) for $1.8 billion in a cash or stock deal. Under the terms of the agreement, shareholders of Susser Holdings Corporation can elect to receive either $80.25 in cash or 1.4506 ETP common units, or a combination of both, for each share held. The shareholder election is subject to proration to ensure that aggregate cash paid and common units issued will each represent 50% of the aggregate merger consideration.
  2. The acquisition of Furiex Pharmaceuticals (FURX) by Forest Laboratories (FRX) for $1.1 billion or $95.00 per share in cash and up to $30 per share (approximately $360 million in aggregate) in a Contingent Value Right (CVR) that may be payable based on the status of eluxadoline, Furiex’s lead product, as a controlled drug following approval.
  3. The acquisition of Orbital Sciences (ORB) by Alliant Techsystems (ATK) for $5 billion in an all stock deal. Under the terms of the agrement, shareholders of Orbital Sciences will receive 0.449 shares of Alliant Techsystems common stock for each share of Orbital common stock held. Before the completion of the merger, there will be a spin-off from ATK of its Sporting Goods. We are not including this deal in our Merger Arbitrage tool.
  4. The acquisition of Omniamerican Bancorp (OABC) by Southside Bancshares (SBSI) for $307 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Omniamerican Bancorp will receive 0.4459 shares of Southside common stock plus $13.125 in cash for each outstanding share of OmniAmerican common stock.
  5. The acquisition of PokerTek (PTEK) by Multimedia Games for $1.35 per share in cash.
  6. The acquisition of Pepco Holdings (POM) by Exelon Corporation (EXC) for $7.2 billion or $27.25 per share in cash.

Closed Deals:

  1. The acquisition of Coastal Contacts (COA) by Essilor International on April 28, 2014. It took 60 days for this deal to be completed.
  2. The acquisition of Tower Financial Corporation (TOFC) by Old National Bancorp (ONB) on April 28, 2014. It took 230 days for this deal to be completed.
  3. The acquisition of Accelrys (ACCL) by Dassault Systèmes on April 29, 2014. It took 89 days for this deal to be completed.
  4. The acquisition of United Financial Bancorp (UBNK) by Rockville Financial (RCKB) on April 30, 2014. It took 166 days for this deal to be completed.
  5. The acquisition of KKR Financial Holdings (KFN) by Kohlberg Kravis Roberts & Co. L.P.(KKR) on April 30, 2014. It took 135 days for this deal to be completed.
  6. The acquisition of Washington Banking (WBCO) by Heritage Financial (HFWA) on May 1, 2014. It took 190 days for this deal to be completed.
  7. The acquisition of ATMI Inc. (ATMI) by Entegris (ENTG) on May 1, 2014. It took 86 days for this deal to be completed.
  8. The acquisition of Beam Inc. (BEAM) by Suntory Holdings Limited on May 2, 2014. t took 109 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$2.6605/31/201420.30%284.99%
SYNM12/17/2013Renewable Energy Group, Inc. (REGI)$4.41$3.7303/31/201418.15%-189.28%
TWGP01/06/2014ACP Re Ltd. (N/A)$3.00$2.5806/30/201416.28%106.10%
QCOR04/07/2014Mallinckrodt plc (MNK)$96.23$83.0509/30/201415.88%39.15%
RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)$18.50$16.4306/30/201412.60%82.12%
HOME10/23/2013Cascade Bancorp (CACB)$16.71$15.0803/31/201410.80%-112.59%
LIN03/22/2014Media General, Inc. (MEG)$27.82$25.2503/31/201510.18%11.26%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6303/31/20149.20%-95.97%
FFCO04/14/2014CB Financial Services, Inc. (CBFV)$24.05$22.1011/15/20148.82%16.59%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$4.03$3.7112/31/20148.50%12.93%

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$2.6633,84005/31/201420.30%284.99%
+SYNM12/17/2013Renewable Energy Group, Inc. (REGI)All StockN/A$4.41$3.7317,94003/31/201418.15%0.00%
+TWGP01/06/2014ACP Re Ltd. (N/A)All Cash$172.1$3.00$2.58381,68406/30/201416.28%106.10%
+QCOR04/07/2014Mallinckrodt plc (MNK)Cash Plus Stock$5.6 billion$96.23$83.052,014,57309/30/201415.88%39.15%
+RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)All Cash$910 million$18.50$16.43339,20906/30/201412.60%82.12%
+HOME10/23/2013Cascade Bancorp (CACB)Cash Plus Stock$265.7 million$16.71$15.0829,39803/31/201410.80%0.00%
+LIN03/22/2014Media General, Inc. (MEG)All Cash$2.6 billion$27.82$25.25740,10903/31/201510.18%11.26%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.6347,40803/31/20149.20%0.00%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$24.05$22.105,48011/15/20148.82%16.59%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$4.03$3.715,60012/31/20148.50%12.93%
+HWG06/05/2013Hallwood Financial Limited (N/A)All CashN/A$13.00$12.215004/30/20146.47%0.00%
+SWY03/06/2014AB Acquisition LLC (N/A)All CashN/A$36.15$34.181,106,00712/31/20145.76%8.77%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$149.59$142.131,630,77712/31/20145.25%7.98%
+EQU12/09/2013Petroflow Energy Corporation (N/A)All Cash$230 million$5.43$5.181,312,79903/31/20144.83%0.00%
+OBAF04/08/2014F.N.B. Corporation (FNB)All Stock$94 million$22.03$21.2233,18909/30/20143.82%9.43%
+PTEK04/30/2014Multimedia Games, Inc. (N/A)All CashN/A$1.35$1.3050168,88212/31/20143.45%5.24%
+NINE01/29/2014Ninetowns Holdings Limited (“Parent”) (N/A)All CashN/A$1.80$1.7460106/30/20143.45%22.48%
+SUSS04/28/2014Energy Transfer Partners, L.P. (ETP)All Stock$1.8 billion$81.23$78.72703,50209/30/20143.19%7.87%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.23$9.932,161,23312/31/20143.07%4.67%
+CHC01/13/2014CPT Wyndham Holdings Ltd. (N/A)All CashN/A$3.51$3.4163,00006/30/20142.93%19.11%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$24.91$24.28410,28412/31/20142.61%3.97%
+GA03/16/2014Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A)All Cash$3 billion$12.00$11.73723,50312/31/20142.30%3.50%
+NICK12/18/2013an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A)All Cash$340 million$16.00$15.6615,02704/30/20142.17%0.00%
+NED04/02/2014Rainbow Education Holding Limited (N/A)All CashN/A$2.85$2.7911,75008/15/20142.15%7.70%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$35.03$34.31286,06812/31/20142.10%3.19%
+JFBI01/23/2014HomeTrust Bancshares, Inc. (HTBI)All Cash$51.2 million$8.00$7.846,17206/30/20142.04%13.30%
+ICH10/28/2013RCS Capital Corporation (N/A)All Cash$52.5 million$7.25$7.1192703/31/20141.97%0.00%
+DLLR04/02/2014affiliate of Lone Star Funds (N/A)All Cash$1.3 billion$9.50$9.3251,043,27909/30/20141.88%4.63%
+FRX02/18/2014Actavis plc (ACT)Cash Plus Stock$25 billion$92.93$91.511,939,03806/30/20141.56%10.14%
+NDZ03/28/2014Sterigenics (N/A)All Cash$727 million$11.75$11.58306,89112/31/20141.47%2.23%
+AMAP04/11/2014affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A)All Cash$1.5 billion$21.00$20.721,792,23409/30/20141.35%3.33%
+HAST03/17/2014Affiliate of Joel Weinshanker (N/A)All Cash$21.4 million$3.00$2.961,25006/30/20141.35%8.81%
+FBMI08/15/2013Mercantile Bank Corp. (MBWM)Cash Plus Stock$151.5 million$17.56$17.333,29506/30/20141.33%8.65%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$7.49$7.3967,22812/31/20141.30%1.98%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$22.76$22.479,82806/30/20141.30%8.47%
+YONG04/09/2014Full Alliance International Limited (N/A)All Cash$339 million$7.10$7.01362,75409/30/20141.28%3.17%
+NTS10/21/2013Tower Three Partners LLC (N/A)All Cash$83 million$2.00$1.9823,35503/31/20141.01%0.00%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.9814,347,61909/30/20151.00%0.71%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$14.49$14.373,228,39212/31/20140.83%1.26%
+ESC02/20/2014Brookdale Senior Living Inc. (BKD)All Stock$2.8 billion$29.97$29.78215,42009/30/20140.65%1.59%
+EPL03/12/2014Energy XXI (Bermuda) Limited (EXXI)Cash Plus Stock$2.3 billion$38.61$38.37629,28406/30/20140.62%4.02%
+SGK03/17/2014Matthews International Corporation (MATW)Cash Plus Stock$577 million$20.06$19.94119,41609/30/20140.58%1.43%
+JOSB03/11/2014The Men’s Wearhouse, Inc. (MW)All Cash$1.8 billion$65.00$64.66149,15006/30/20140.53%3.43%
+CBEY04/21/2014Birch Communications, Inc. (N/A)All Cash$323 million$9.97$9.92650,00210/31/20140.50%1.03%
+PACR01/06/2014XPO Logistics, Inc. (XPO)All Cash$296 million$9.00$8.96N/A06/30/20140.45%2.91%
+ZIGO04/11/2014AMETEK, Inc. (AME)All Cash$280 million$19.25$19.17122,88806/30/20140.42%2.72%
+TXI01/28/2014Martin Marietta Materials Inc. (MLM)All Stock$2.7 billion$88.38$88.04211,20506/30/20140.38%2.48%
+UNS12/11/2013Fortis, Inc. (N/A)All Cash$4.3 billion$60.25$60.11366,60612/31/20140.23%0.35%
+VOCS04/07/2014GTCR Valor Merger Sub, Inc., an affiliate of GTCR LLC (N/A)All Cash$446.5 million$18.00$17.96423,78806/30/20140.22%1.45%
+ANLY08/28/2013ACS Motion Control, Ltd. (ACSEF)All Cash$35 million$6.45$6.44N/A12/31/20130.16%0.00%
+TSH01/13/2014IberiaBank Corp. (IBKC)All Stock$161 million$73.29$73.219,50306/30/20140.11%0.69%
+MKTG12/20/2013Oracle Corporation (ORCL)All Cash$1.5 billion$27.00$26.98N/A06/30/20140.07%0.48%
+ACO03/06/2014Minerals Technologies Inc. (MTX)All Cash$1.7 billion$45.75$45.73244,63805/02/20140.04%0.00%
+LSI12/16/2013Avago Technologies Limited (AVGO)All Cash$6.6 billion$11.15$11.156,017,68406/30/20140.00%0.00%
+LCAV02/13/2014PhotoMedex, Inc. (PHMD)All Cash$106.4 million$5.37$5.37130,15806/30/20140.00%0.00%
+CNOB01/21/2014Center Bancorp, Inc. (CNBC)All Stock$243 million$47.48$47.655,23909/30/2014-0.37%-0.90%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$21.38$21.4632,71706/30/2014-0.38%-2.47%
+ARTC02/03/2014Smith & Nephew (N/A)All Cash$1.7 billion$48.25$48.48993,12006/30/2014-0.47%-3.09%
+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$5.4929,74009/30/2013-0.73%1.23%
+VSB01/27/2014Yadkin Financial Corporation (YDKN)All Stock$299 million$5.93$6.0019,48006/30/2014-1.15%-7.47%
+ZLC02/19/2014Signet Jewelers Limited (SIG)All Cash$1.4 billion$21.00$21.26411,11606/30/2014-1.22%-7.97%
+FURX04/28/2014Forest Laboratories Inc. (FRX)All Cash$1.1 billion$95.00$103.20524,73309/30/2014-7.95%-19.60%
+CHDX02/17/2014a buyer consortium (the “Buyer Consortium”) of an affiliate of TPG (together with its affiliates, “TPG”), an affiliate of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun”), and Ms. Roberta Lipson, the CEO of the Company (N/A)All Cash$369 million$19.50$23.8047,81112/31/2014-18.07%-27.48%

Voluntary Disclosure: I hold a long position in Safeway (SWY).

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