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Merger Arbitrage Mondays – June 9, 2014

  • June 8, 2014

Merger Activity increased last week with four new mergers announced and five 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 201475
Total Number of Pending Deals
Cash Deals26
Stock Deals18
Stock & Cash Deals9
Special Conditions8
Total Number of Pending Deals61
Total Deal Size$311.37 billion

New Deals:

  1. The acquisition of American Realty Capital Healthcare Trust (HCT) by Ventas (VTR) for $2.6 billion. Under the terms of the agreement, shareholders of American Realty Capital Healthcare Trust can choose to receive 0.1688 Ventas common shares or $11.33 in cash for each common share of ARC Healthcare they own. Since the cash portion of the deal is subject to a cap of 10 percent of ARC Healthcare’s outstanding shares, we are treating this deal as an all-stock deal.
  2. The acquisition of Protective Life Corporation (PL) by Dai-ichi Life Insurance Company for $5.7 billion or $70.00 per share in cash.
  3. The acquisition of TF Financial Corporation (THRD) by National Penn Bancshares (NPBC) for $138 million. Under the terms of the agreement, shareholders of TF Financial Corporation may elect to receive either $42.00 in cash or a fixed exchange ratio of 4.22 shares of National Penn stock for each share of TF Financial common stock. Since only 40% of TF Financial shareholders will receive cash and 60% of shareholders will National Penn shares, we are treating this as an all-stock deal.
  4. The acquisition of LSB Financial Corp. (LSBI) by Old National Bancorp. (ONB) for $66.7 million in a cash plus stock deal. Under the terms of the agreement, shareholders of LSB Financial corporation will receive 2.269 shares of Old National common stock and $10.63 in cash for each share of LSB Financial common stock.

Deal Updates:

  1. On June 4, 2014, Nordion (NDZ) announced that it has entered into a second amendment with Sterigenics, providing that among other things, shareholder of Nordion will now be entitled to receive $13.00 per share upon closing of the proposed acquisition.

Closed Deals:

  1. The acquisition of Jefferson Bancshares (JFBI) by HomeTrust Bancshares (HTBI) on June 2, 2014. It took 130 days for this deal to be completed.
  2. The acquisition of Firstbank Corporation (FBMI) by Mercantile Bank (MBWM) on June 2, 2014. It took 291 days for this deal to be completed.
  3. The acquisition of Teche Holding Company (TSH) by IberiaBank (IBKC) on June 2, 2014. It took 140 days for this deal to be completed.
  4. The acquisition of EPL Oil & Gas (EPL) by Energy XXI (Bermuda) Limited (EXXI) on June 4, 2014. It took 84 days for this deal to be completed.
  5. The acquisition of NTS (NTS) by Tower Three Partners LLC on June 6, 2014. It took 228 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)$47.46$31.5509/30/201450.43%162.89%
TWGP01/06/2014ACP Re Ltd. (N/A)$2.50$1.9811/15/201426.26%60.29%
CHTP05/08/2014H. Lundbeck A/S (N/A)$7.94$6.5609/30/201421.04%67.95%
SYNM12/17/2013Renewable Energy Group, Inc. (REGI)$3.89$3.3503/31/201415.98%-83.30%
DTV05/18/2014AT&T, Inc. (T)$95.00$83.3405/31/201513.99%14.34%
QCOR04/07/2014Mallinckrodt plc (MNK)$97.58$88.1609/30/201410.69%34.51%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$3.93$3.5812/31/20149.84%17.51%
NICK12/18/2013an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A)$16.00$14.7106/12/20148.77%1066.96%
RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)$18.50$17.0206/30/20148.70%151.14%
FFCO04/14/2014CB Financial Services, Inc. (CBFV)$23.53$21.9011/15/20147.43%17.06%

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$47.46$31.551,394,43309/30/201450.43%162.89%
+TWGP01/06/2014ACP Re Ltd. (N/A)All Cash$172.1$2.50$1.98697,66211/15/201426.26%60.29%
+CHTP05/08/2014H. Lundbeck A/S (N/A)Special Conditions$658 million$7.94$6.56878,01009/30/201421.04%67.95%
+SYNM12/17/2013Renewable Energy Group, Inc. (REGI)All StockN/A$3.89$3.35178,28103/31/201415.98%0.00%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$83.344,897,90405/31/201513.99%14.34%
+QCOR04/07/2014Mallinckrodt plc (MNK)Cash Plus Stock$5.6 billion$97.58$88.161,655,20409/30/201410.69%34.51%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$3.93$3.586,56512/31/20149.84%17.51%
+NICK12/18/2013an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A)All Cash$340 million$16.00$14.7124,77906/12/20148.77%1066.96%
+RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)All Cash$910 million$18.50$17.02131,50506/30/20148.70%151.14%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$23.53$21.907,65011/15/20147.43%17.06%
+LIN03/22/2014Media General, Inc. (MEG)Special Conditions$2.6 billion$27.82$26.00201,34303/31/20157.00%8.66%
+OVRL05/15/2014Sphere 3D Corporation (SPIHF)All Stock$81.13 million$4.25$4.00152,35409/30/20146.33%20.45%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$152.12$143.66925,47512/31/20145.89%10.48%
+DCIN05/15/2014Carmike Cinemas Inc. (CKEC)All StockN/A$6.37$6.0366,28709/30/20145.71%18.43%
+THRD06/04/2014National Penn Bancshares Inc. (NPBC)All Stock$138 million$45.28$42.85113,99412/31/20145.67%10.10%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$34.302,283,19912/31/20145.39%9.60%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.694,71903/31/20145.33%0.00%
+CHRM05/19/2014Engadin Parent Limited (N/A)Special ConditionsN/A$4.70$4.5033,02909/30/20144.44%14.36%
+ICH10/28/2013RCS Capital Corporation (N/A)All Cash$52.5 million$7.25$6.9530,95203/31/20144.32%0.00%
+OBAF04/08/2014F.N.B. Corporation (FNB)All Stock$94 million$22.55$21.6636,75509/30/20144.10%13.23%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.40$9.991,521,23112/31/20144.07%7.25%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.94$8.64158,12710/31/20143.42%8.67%
+SUSS04/28/2014Energy Transfer Partners, L.P. (ETP)All Stock$1.8 billion$82.44$79.95344,74409/30/20143.11%10.05%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$42.60$41.4045,17512/31/20142.90%5.16%
+NED04/02/2014Rainbow Education Holding Limited (N/A)All CashN/A$2.85$2.7726,60008/15/20142.89%15.73%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$25.13$24.45424,85112/31/20142.78%4.94%
+CHC01/13/2014CPT Wyndham Holdings Ltd. (N/A)All CashN/A$3.51$3.42219,97106/30/20142.63%45.74%
+SPBC05/05/2014Green Bank (N/A)All Cash$46.2 million$29.55$28.841,73109/30/20142.46%7.95%
+PTEK04/30/2014Multimedia Games, Inc. (N/A)All CashN/A$1.35$1.3233,19612/31/20142.27%4.05%
+NDZ03/28/2014Sterigenics (N/A)All Cash$727 million$13.00$12.721,288,64412/31/20142.20%3.92%
+GA03/16/2014Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A)All Cash$3 billion$12.00$11.77272,57912/31/20141.95%3.48%
+HAST03/17/2014Affiliate of Joel Weinshanker (N/A)All Cash$21.4 million$3.00$2.951,29806/30/20141.69%29.46%
+EQU12/09/2013Petroflow Energy Corporation (N/A)All Cash$230 million$5.43$5.35149,42307/31/20141.50%10.50%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$16.08$15.893,358,46612/31/20141.20%2.13%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$22.28$22.0452,92006/30/20141.09%18.99%
+FRX02/18/2014Actavis plc (ACT)Cash Plus Stock$25 billion$95.17$94.241,500,43906/30/20140.98%17.06%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.462,374,40201/31/20150.78%1.20%
+AMAP04/11/2014affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A)All Cash$1.5 billion$21.00$20.84248,37409/30/20140.77%2.48%
+ESC02/20/2014Brookdale Senior Living Inc. (BKD)All Stock$2.8 billion$32.49$32.26345,55609/30/20140.71%2.30%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$11.04$10.9716,706,64012/31/20140.60%1.07%
+CNOB01/21/2014Center Bancorp, Inc. (CNBC)All Stock$243 million$47.74$47.4519,19509/30/20140.60%1.95%
+PACR01/06/2014XPO Logistics, Inc. (XPO)Special Conditions$296 million$9.00$8.96N/A06/30/20140.45%7.76%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$22.08$22.0363,66606/30/20140.23%3.93%
+ANLY08/28/2013ACS Motion Control, Ltd. (ACSEF)All Cash$35 million$6.45$6.44N/A12/31/20130.16%0.00%
+YONG04/09/2014Full Alliance International Limited (N/A)All Cash$339 million$7.10$7.091,006,87709/30/20140.14%0.46%
+DLLR04/02/2014affiliate of Lone Star Funds (N/A)All Cash$1.3 billion$9.50$9.493,756,76909/30/20140.11%0.34%
+CBEY04/21/2014Birch Communications, Inc. (N/A)Special Conditions$323 million$9.97$9.96215,05010/31/20140.10%0.25%
+MKTG12/20/2013Oracle Corporation (ORCL)All Cash$1.5 billion$27.00$26.98N/A06/30/20140.07%1.29%
+JOSB03/11/2014The Men’s Wearhouse, Inc. (MW)All Cash$1.8 billion$65.00$64.97356,87406/30/20140.05%0.80%
+TXI01/28/2014Martin Marietta Materials Inc. (MLM)All Stock$2.7 billion$90.08$90.07148,15306/30/20140.01%0.12%
+ZIGO04/11/2014AMETEK, Inc. (AME)All Cash$280 million$19.25$19.2952,01206/30/2014-0.21%-3.60%
+SGK03/17/2014Matthews International Corporation (MATW)Cash Plus Stock$577 million$20.14$20.1966,98409/30/2014-0.23%-0.74%
+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$5.4978,42609/30/2014-0.73%-2.35%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$34.45$34.70666,68312/31/2014-0.73%-1.30%
+ARX05/20/2014Cobham plc (N/A)All Cash$1.46 billion$10.50$10.62115,09009/30/2014-1.13%-3.65%
+VSB01/27/2014Yadkin Financial Corporation (YDKN)All Stock$299 million$6.07$6.1518,58406/30/2014-1.27%-22.08%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$7.09$7.1969,97512/31/2014-1.40%-2.49%
+PDH05/28/2014Flint Hills Resources, LLC (N/A)All Cash$2.1 billion$14.00$14.39695,94812/31/2014-2.71%-4.83%
+DFZ05/02/2014Mill Road Capital (N/A)All Cash$215 million$19.00$20.0371,98709/30/2014-5.14%-16.61%
+FURX04/28/2014Forest Laboratories Inc. (FRX)Special Conditions$1.1 billion$95.00$105.2578,15909/30/2014-9.74%-31.46%
+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$23.8544,00712/31/2014-18.24%-32.47%

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

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