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Merger Arbitrage Mondays – June 16, 2014

  • June 15, 2014

Merger Activity increased last week with five new mergers announced 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 201477
Total Number of Pending Deals
Cash Deals28
Stock Deals17
Stock & Cash Deals10
Special Conditions8
Total Number of Pending Deals63
Total Deal Size$363.07 billion

New Deals:

  1. The acquisition of Idenix Pharmaceuticals (IDIX) by Merck & Co. (MRK) for $3.85 billion or $24.50 per share in cash.
  2. The acquisition of Hittite Microwave Corporation (HITT) by Analog Devices (ADI) for $2 billion or $78.00 per share in cash.
  3. The acquisition of Montage Technology Group Limited (MONT) by Shanghai Pudong Science and Technology Investment Co. for $2 billion or $22.60 per share in cash.
  4. The acquisition of OpenTable (OPEN) by Priceline (PCLN) for $2.6 billion or $103 per share in cash.
  5. The acquisition of Covidien (COV) by Medtronic (MDT) for $42.9 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Covidien will receive $35.19 in cash and 0.956 of an ordinary share of Medtronic plc.

Deal Updates:

  1. On June 12, 2014, Nicholas Financial (NICK) terminated its arrangement agreement with Prospect Capital on the basis that certain conditions requisite to consummation of the Arrangement could not be satisfied by the termination deadline.

Closed Deals:

  1. The acquisition of DFC Global Corp. (DLLR) by an affiliate of Lone Star Funds on June 13, 2014. It took 72 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

PF05/12/2014The Hillshire Brands Company (HSH)$48.91$33.0409/30/201448.03%165.40%
COV06/15/2014Medtronic, Inc. (MDT)$93.22$72.0201/31/201529.44%46.92%
TWGP01/06/2014ACP Re Ltd. (N/A)$2.50$1.9611/15/201427.55%66.16%
CHTP05/08/2014H. Lundbeck A/S (N/A)$7.94$6.55509/30/201421.13%72.76%
DTV05/18/2014AT&T, Inc. (T)$95.00$83.0705/31/201514.36%15.02%
LIN03/22/2014Media General, Inc. (MEG)$27.82$25.3803/31/20159.61%12.18%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$3.93$3.6012/31/20149.22%17.01%
QCOR04/07/2014Mallinckrodt plc (MNK)$97.35$89.3709/30/20148.93%30.73%
RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)$18.50$17.0606/30/20148.44%220.06%
FFCO04/14/2014CB Financial Services, Inc. (CBFV)$23.53$21.7611/15/20148.12%19.51%

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

+PF05/12/2014The Hillshire Brands Company (HSH)Cash Plus Stock$4.3 billion$48.91$33.041,398,56909/30/201448.03%165.40%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$93.22$72.02829,91401/31/201529.44%46.92%
+TWGP01/06/2014ACP Re Ltd. (N/A)All Cash$172.1$2.50$1.96365,02811/15/201427.55%66.16%
+CHTP05/08/2014H. Lundbeck A/S (N/A)Special Conditions$658 million$7.94$6.5551,086,16509/30/201421.13%72.76%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$83.072,894,57605/31/201514.36%15.02%
+LIN03/22/2014Media General, Inc. (MEG)Special Conditions$2.6 billion$27.82$25.38256,11803/31/20159.61%12.18%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$3.93$3.601,00612/31/20149.22%17.01%
+QCOR04/07/2014Mallinckrodt plc (MNK)Cash Plus Stock$5.6 billion$97.35$89.372,450,70509/30/20148.93%30.73%
+RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)All Cash$910 million$18.50$17.06115,92506/30/20148.44%220.06%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$23.53$21.761,86011/15/20148.12%19.51%
+MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)All Cash$693 million$22.60$20.99600,26209/30/20147.67%26.41%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$34.091,749,07212/31/20146.04%11.14%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$150.85$142.26956,97212/31/20146.04%11.13%
+OVRL05/15/2014Sphere 3D Corporation (SPIHF)All Stock$81.13 million$4.13$3.90111,95809/30/20145.92%20.37%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.31$9.852,270,07112/31/20144.65%8.57%
+CHRM05/19/2014Engadin Parent Limited (N/A)Special ConditionsN/A$4.70$4.5025,88409/30/20144.44%15.30%
+THRD06/04/2014National Penn Bancshares Inc. (NPBC)All Stock$138 million$44.23$42.369,04112/31/20144.40%8.12%
+DCIN05/15/2014Carmike Cinemas Inc. (CKEC)All StockN/A$6.36$6.107,42709/30/20144.23%14.57%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.7121,25003/31/20144.09%0.00%
+OBAF04/08/2014F.N.B. Corporation (FNB)All Stock$94 million$22.46$21.5912,69009/30/20144.02%13.85%
+IDIX06/09/2014Merck & Co. Inc. (MRK)All Cash$3.85 billion$24.50$23.643,386,04509/30/20143.64%12.53%
+NED04/02/2014Rainbow Education Holding Limited (N/A)All CashN/A$2.85$2.774,20008/15/20142.89%17.57%
+ICH10/28/2013RCS Capital Corporation (N/A)All Cash$52.5 million$7.25$7.053,14803/31/20142.84%0.00%
+SUSS04/28/2014Energy Transfer Partners, L.P. (ETP)All Stock$1.8 billion$81.51$79.36220,38909/30/20142.71%9.33%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$42.28$41.176,48512/31/20142.70%4.98%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.91$8.6895,68610/31/20142.64%7.03%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$25.31$24.6738,87512/31/20142.60%4.79%
+SPBC05/05/2014Green Bank (N/A)All Cash$46.2 million$29.55$28.841,00609/30/20142.46%8.48%
+PTEK04/30/2014Multimedia Games, Inc. (N/A)All CashN/A$1.35$1.321,15712/31/20142.27%4.19%
+NDZ03/28/2014Sterigenics (N/A)All Cash$727 million$13.00$12.72214,48312/31/20142.20%4.06%
+GA03/16/2014Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A)All Cash$3 billion$12.00$11.76770,32712/31/20142.04%3.76%
+CHC01/13/2014CPT Wyndham Holdings Ltd. (N/A)All CashN/A$3.51$3.44240,94906/30/20142.03%53.05%
+YONG04/09/2014Full Alliance International Limited (N/A)All Cash$339 million$7.10$6.977,298,63009/30/20141.87%6.42%
+HAST03/17/2014Affiliate of Joel Weinshanker (N/A)All Cash$21.4 million$3.00$2.955,85506/30/20141.69%44.19%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$21.75$21.528,78706/30/20141.08%28.17%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.462,050,96201/31/20150.78%1.24%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$34.67$34.451,044,49412/31/20140.64%1.18%
+ESC02/20/2014Brookdale Senior Living Inc. (BKD)All Stock$2.8 billion$31.45$31.27132,61509/30/20140.59%2.03%
+FRX02/18/2014Actavis plc (ACT)Cash Plus Stock$25 billion$95.14$94.581,342,58206/30/20140.59%15.31%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$16.58$16.502,509,24412/31/20140.50%0.92%
+AMAP04/11/2014affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A)All Cash$1.5 billion$21.00$20.90538,99109/30/20140.48%1.65%
+PACR01/06/2014XPO Logistics, Inc. (XPO)Special Conditions$296 million$9.00$8.96N/A06/30/20140.45%11.64%
+SGK03/17/2014Matthews International Corporation (MATW)Cash Plus Stock$577 million$20.06$19.9939,29209/30/20140.33%1.13%
+CNOB01/21/2014Center Bancorp, Inc. (CNBC)All Stock$243 million$48.49$48.358,43009/30/20140.29%1.00%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$21.66$21.6133,36106/30/20140.24%6.24%
+CBEY04/21/2014Birch Communications, Inc. (N/A)Special Conditions$323 million$9.97$9.9580,85210/31/20140.20%0.54%
+ANLY08/28/2013ACS Motion Control, Ltd. (ACSEF)All Cash$35 million$6.45$6.44N/A12/31/20130.16%0.00%
+TXI01/28/2014Martin Marietta Materials Inc. (MLM)All Stock$2.7 billion$92.47$92.36245,29806/30/20140.12%3.11%
+MKTG12/20/2013Oracle Corporation (ORCL)All Cash$1.5 billion$27.00$26.98N/A06/30/20140.07%1.93%
+JOSB03/11/2014The Men’s Wearhouse, Inc. (MW)All Cash$1.8 billion$65.00$64.97228,51706/30/20140.05%1.20%
+EQU12/09/2013Petroflow Energy Corporation (N/A)All Cash$230 million$5.43$5.43223,58707/31/20140.00%0.00%
+HITT06/09/2014Analog Devices, Inc. (ADI)All Cash$2 billion$78.00$78.02832,76409/30/2014-0.03%-0.09%
+ZIGO04/11/2014AMETEK, Inc. (AME)All Cash$280 million$19.25$19.2635,30306/30/2014-0.05%-1.35%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$10.74$10.753,077,36712/31/2014-0.07%-0.13%
+ARX05/20/2014Cobham plc (N/A)All Cash$1.46 billion$10.50$10.52330,65009/30/2014-0.19%-0.65%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$7.17$7.2141,84212/31/2014-0.57%-1.05%
+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$5.5052,26309/30/2014-0.91%-3.13%
+OPEN06/13/2014The Priceline Group Inc. (PCLN)All Cash$2.6 billion$103.00$104.4811,041,50109/30/2014-1.42%-4.88%
+DFZ05/02/2014Mill Road Capital (N/A)All Cash$215 million$19.00$19.5120,44609/30/2014-2.61%-9.00%
+PDH05/28/2014Flint Hills Resources, LLC (N/A)All Cash$2.1 billion$14.00$14.39465,31812/31/2014-2.71%-5.00%
+VSB01/27/2014Yadkin Financial Corporation (YDKN)All Stock$299 million$5.90$6.2224,17106/30/2014-5.09%-132.82%
+FURX04/28/2014Forest Laboratories Inc. (FRX)Special Conditions$1.1 billion$95.00$104.26125,05909/30/2014-8.88%-30.58%
+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$23.7025,85312/31/2014-17.72%-32.67%

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

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