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Merger Arbitrage Mondays – June 30, 2014

  • June 29, 2014

Merger Activity increased last week with six 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 201480
Total Number of Deals Not Completed in 20141
Total Number of Pending Deals
Cash Deals31
Stock Deals18
Stock & Cash Deals11
Special Conditions7
Total Number of Pending Deals67
Total Deal Size$383.12 billion

New Deals:

  1. The acquisition of Integrys Energy Group (TEG) by Wisconsin Energy (WEC) for $9.1 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Integrys Energy Group will receive common stock at a fixed exchange ratio of 1.128 Wisconsin Energy shares plus $18.50 in cash per Integrys share.
  2. The acquisition of PLX Technology (PLXT) by Avago Technologies Limited (AVGO) for $293 million or $6.50 per share in cash.
  3. The acquisition of MICROS Systems (MCRS) by Oracle Corporation (ORCL) for $4.6 billion or $68.00 per share in cash.
  4. The acquisition of Georgia Carolina Bancshares (GECR) by State Bank Financial Corporation (STBZ) for $82 million. The exchange ratio will depend on the average closing price of State Bank’s common stock during the twenty trading day period ending five business days before the closing of the transaction (the “Final State Bank Price”). If the Final State Bank Price is above $14.00 but below $17.00, the exchange ratio will be equal to $13.50 divided by the Final State Bank Price. If the Final State Bank Price is at or above $17.00, the exchange ratio will be 0.794. If the Final State Bank Price is at or below $14.00, the exchange ratio will be 0.964.
  5. The acquisition of Medical Action Industries (MDCI) by Owens & Minor (OMI) for $208 million or $13.80 per share in cash.
  6. The acquisition of Auxilium Pharmaceuticals (AUXL) by QLT Inc. (QLTI) in an all stock deal. Under the terms of the agreement, shareholders of Auxilium Pharmaceuticals will receive 3.1359 QLT common shares. Upon consummation of the Merger, each outstanding share of Auxilium common stock, other than shares owned by Auxilium, QLT, HoldCo or AcquireCo, will be converted into the right to receive 3.1359 QLT common shares (the “Equity Exchange Ratio“), subject to adjustment as described in the immediately following sentence. If at or immediately after the effective time of the Merger, QLT receives an aggregate cash consideration pursuant to any sale, license, sublicense or similar transaction related to its proprietary synthetic retinoid product in development known as “QLT091001”, which is:

(a)   less than $25 million but equal to or greater than $20 million then, the Equity Exchange Ratio shall be increased by 0.0192;

(b)   less than $20 million but equal to or greater than $15 million, then the Equity Exchange Ratio shall be increased by 0.0385;

(c)   less than $15 million but equal to or greater than $10 million, then the Equity Exchange Ration shall be increased by 0.0577;

(d)   less than $10 million but equal to or greater than $5 million, then the Equity Exchange Ratio shall be increased by 0.0770; or

(e)   less than $5 million, or in the event that no such transaction is consummated at or immediately after the effective time of the Merger, then the Equity Exchange Ratio shall be increased by 0.0962.

Upon completion of the Merger, Auxilium stockholders will own approximately 76% of the outstanding common shares of the Combined Company on a fully diluted basis and current QLT stockholders will own approximately 24% of the outstanding common shares of the Combined Company on a fully diluted basis, subject to certain adjustments.

Closed Deals:

  1. The acquisition of Chelsea Therapeutics International (CHTP) by H. Lundbeck A/S on June 24, 2014. It took 47 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

TWGP01/06/2014ACP Re Ltd. (N/A)$2.50$2.02511/15/201423.46%62.04%
DTV05/18/2014AT&T, Inc. (T)$95.00$84.5905/31/201512.31%13.41%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$4.00$3.6412/31/20149.96%19.75%
QCOR04/07/2014Mallinckrodt plc (MNK)$100.10$91.3509/30/20149.58%38.00%
MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)$22.60$20.6409/30/20149.50%37.67%
RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)$18.50$17.1306/30/20148.00%0.00%
COV06/15/2014Medtronic, Inc. (MDT)$96.49$90.4301/31/20156.70%11.37%
HCBK08/27/2012M&T Bank Corporation (MTB)$10.43$9.8612/31/20145.78%11.46%
SWY03/06/2014AB Acquisition LLC (N/A)$36.15$34.2912/31/20145.42%10.76%
TWC02/13/2014Comcast Corporation (CMCSA)$155.62$147.8412/31/20145.26%10.44%

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

+TWGP01/06/2014ACP Re Ltd. (N/A)All Cash$172.1$2.50$2.0254,738,68211/15/201423.46%62.04%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$84.592,853,55905/31/201512.31%13.41%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$4.00$3.6420012/31/20149.96%19.75%
+QCOR04/07/2014Mallinckrodt plc (MNK)Cash Plus Stock$5.6 billion$100.10$91.353,846,30309/30/20149.58%38.00%
+MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)All Cash$693 million$22.60$20.64173,93409/30/20149.50%37.67%
+RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)All Cash$910 million$18.50$17.13161,09706/30/20148.00%0.00%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$96.49$90.437,468,13401/31/20156.70%11.37%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.43$9.863,477,71512/31/20145.78%11.46%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$34.292,699,00612/31/20145.42%10.76%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$155.62$147.841,351,66712/31/20145.26%10.44%
+VSB01/27/2014Yadkin Financial Corporation (YDKN)All Stock$299 million$6.05$5.76467,70606/30/20144.98%0.00%
+GECR06/23/2014State Bank Financial Corporation (STBZ)Special Conditions$82 million$22.35$21.365,89303/31/20154.63%6.17%
+THRD06/04/2014National Penn Bancshares Inc. (NPBC)All Stock$138 million$44.86$42.909,91612/31/20144.57%9.06%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$22.89$21.901,08411/15/20144.52%11.96%
+CHRM05/19/2014Engadin Parent Limited (N/A)Special ConditionsN/A$4.70$4.506,40009/30/20144.44%17.63%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$42.76$41.014,02912/31/20144.26%8.46%
+SUSS04/28/2014Energy Transfer Partners, L.P. (ETP)All Stock$1.8 billion$83.57$80.60277,89409/30/20143.68%14.61%
+DCIN05/15/2014Carmike Cinemas Inc. (CKEC)All StockN/A$6.25$6.0553,53609/30/20143.33%13.22%
+YONG04/09/2014Full Alliance International Limited (N/A)All Cash$339 million$7.10$6.88879,42409/30/20143.20%12.69%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$25.99$25.2081,01712/31/20143.15%6.25%
+OVRL05/15/2014Sphere 3D Corporation (SPIHF)All Stock$81.13 million$4.62$4.48183,03209/30/20143.14%12.48%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.91$8.68209,73910/31/20142.64%7.83%
+CHC01/13/2014CPT Wyndham Holdings Ltd. (N/A)All CashN/A$3.51$3.4226,64206/30/20142.63%0.00%
+NDZ03/28/2014Sterigenics (N/A)All Cash$727 million$13.00$12.67212,20712/31/20142.60%5.17%
+NED04/02/2014Rainbow Education Holding Limited (N/A)All CashN/A$2.85$2.78132,74108/15/20142.52%19.98%
+SPBC05/05/2014Green Bank (N/A)All Cash$46.2 million$29.55$28.8510809/30/20142.43%9.63%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.7446,43003/31/20142.30%0.00%
+PTEK04/30/2014Multimedia Games, Inc. (N/A)All CashN/A$1.35$1.3261,47212/31/20141.81%3.59%
+HAST03/17/2014Affiliate of Joel Weinshanker (N/A)All Cash$21.4 million$3.00$2.951,69706/30/20141.69%0.00%
+IDIX06/09/2014Merck & Co. Inc. (MRK)All Cash$3.85 billion$24.50$24.122,470,23209/30/20141.58%6.25%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$15.68$15.454,319,05212/31/20141.48%2.93%
+GA03/16/2014Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A)All Cash$3 billion$12.00$11.851,926,77912/31/20141.27%2.51%
+TWTC06/16/2014Level 3 Communications, Inc. (LVLT)Cash Plus Stock$7.3 billion$40.79$40.33992,56712/31/20141.15%2.28%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$34.45$34.115,226,31912/31/20140.98%1.95%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.401,428,28001/31/20150.86%1.47%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$22.19$22.0115,11406/30/20140.80%0.00%
+OBAF04/08/2014F.N.B. Corporation (FNB)All Stock$94 million$22.67$22.5015,81909/30/20140.77%3.04%
+ICH10/28/2013RCS Capital Corporation (N/A)All Cash$52.5 million$7.25$7.209,43903/31/20140.69%0.00%
+AMAP04/11/2014affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A)All Cash$1.5 billion$21.00$20.87202,22709/30/20140.62%2.47%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$71.36$70.92816,74906/30/20150.62%0.62%
+LIN03/22/2014Media General, Inc. (MEG)Special Conditions$2.6 billion$27.82$27.65651,64503/31/20150.61%0.82%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$10.83$10.7813,504,27412/31/20140.43%0.86%
+MCRS06/23/2014Oracle Corporation (ORCL)All Cash$4.6 billion$68.00$67.724,664,44712/31/20140.41%0.82%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$21.53$21.4555,90406/30/20140.36%0.00%
+CNOB01/21/2014Center Bancorp, Inc. (CNBC)All Stock$243 million$50.00$49.83206,97309/30/20140.34%1.34%
+DFZ05/02/2014Mill Road Capital (N/A)All Cash$215 million$19.00$18.94135,87209/30/20140.32%1.26%
+PLXT06/24/2014Avago Technologies Limited (AVGO)All Cash$293 million$6.50$6.483,390,63511/03/20140.31%0.89%
+CBEY04/21/2014Birch Communications, Inc. (N/A)Special Conditions$323 million$9.97$9.94127,68710/31/20140.30%0.90%
+ARX05/20/2014Cobham plc (N/A)All Cash$1.46 billion$10.50$10.49270,50509/30/20140.10%0.38%
+FRX02/18/2014Actavis plc (ACT)Cash Plus Stock$25 billion$99.85$99.772,678,57206/30/20140.08%0.00%
+MEAS06/18/2014TE Connectivity Ltd. (TEL)All Cash$1.7 billion$86.00$85.95439,73712/31/20140.06%0.12%
+HITT06/09/2014Analog Devices, Inc. (ADI)All Cash$2 billion$78.00$77.96538,95309/30/20140.05%0.20%
+TXI01/28/2014Martin Marietta Materials Inc. (MLM)All Stock$2.7 billion$92.56$92.55209,15806/30/20140.01%0.00%
+MDCI06/25/2014Owens & Minor, Inc. (OMI)All Cash$208 million$13.80$13.803,171,07812/31/20140.00%0.00%
+ESC02/20/2014Brookdale Senior Living Inc. (BKD)All Stock$2.8 billion$31.99$32.01646,62109/30/2014-0.07%-0.29%
+EQU12/09/2013Petroflow Energy Corporation (N/A)All Cash$230 million$5.43$5.44394,19607/31/2014-0.18%-2.16%
+UNS12/11/2013Fortis, Inc. (N/A)All Cash$4.3 billion$60.25$60.40327,53712/31/2014-0.25%-0.49%
+SGK03/17/2014Matthews International Corporation (MATW)Cash Plus Stock$577 million$20.37$20.45190,22909/30/2014-0.41%-1.63%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.40959,70509/30/2015-0.55%-0.44%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$7.27$7.3286,13312/31/2014-0.73%-1.45%
+FIO06/16/2014SanDisk Corp. (SNDK)All Cash$1.1 billion$11.25$11.345,646,76509/30/2014-0.79%-3.15%
+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$5.5039,66009/30/2014-0.91%-3.61%
+OPEN06/13/2014The Priceline Group Inc. (PCLN)All Cash$2.6 billion$103.00$104.01725,30209/30/2014-0.97%-3.85%
+PDH05/28/2014Flint Hills Resources, LLC (N/A)All Cash$2.1 billion$14.00$14.45238,83912/31/2014-3.11%-6.18%
+AUXL06/26/2014QLT Inc. (QLTI)All StockN/A$20.16$21.262,119,64812/31/2014-5.16%-10.23%
+FURX04/28/2014Forest Laboratories Inc. (FRX)Special Conditions$1.1 billion$95.00$104.96139,51409/30/2014-9.49%-37.65%
+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$23.6789,14012/31/2014-17.62%-34.95%

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

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