Merger Arbitrage Mondays – August 18, 2014

  • August 17, 2014

Merger Activity increased last week with four new mergers announced and three deals closing. Three of the four new deals are related to combining the various Kinder Morgan entities into a single publicly traded company and effectively getting rid of the MLP structure it had pioneered.

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 2014106
Total Number of Deals Not Completed in 20142
Total Number of Pending Deals
Cash Deals22
Stock Deals21
Stock & Cash Deals15
Special Conditions7
Total Number of Pending Deals65
Total Deal Size$466.12 billion

New Deals:

  1. The acquisition of Kinder Morgan Management (KMR) by Kinder Morgan, Inc. (KMI) in an all stock deal. Under the terms of the agrement, shareholders of Kinder Morgan Management will receive 2.4849 KMI shares for each share of KMR.
  2. The acquisition of Kinder Morgan Energy Partners (KMP) by Kinder Morgan, Inc. (KMI) in a cash plus stock deal. Under the terms of the agreement, shareholders of Kinder Morgan Energy Partners will receive 2.1931 KMI shares and $10.77 in cash for each KMP unit.
  3. The acquisition of El Paso Pipeline Partners (EPB) by Kinder Morgan, Inc. (KMI) in a cash plus stock deal. Under the terms of the agreement, shareholders of El Paso Pipieline Partners will receive 0.9451 KMI shares and $4.65 in cash for each EPB unit.
  4. The acquisition of Fortegra Financial Corporation (FRF) by Tiptree Financial (TIPT) for $218 million or $10.00 per share in cash.

Closed Deals:

  1. The acquisition of PLX Technology (PLXT) by Avago Technologies Limited (AVGO) on August 12, 2014. It took 49 days for this deal to be completed.
  2. The acquisition of Questcor Pharmaceuticals (QCOR) by Mallinckrodt (MNK) on August 14, 2014. It took 129 days for this deal to be completed.
  3. The acquisition of zipRealty (ZIPR) by Realogy Holdings (RLGY) on August 14, 2014. It took 30 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

LIN03/22/2014Media General, Inc. (MEG)$27.82$22.4103/31/201524.14%39.16%
OVRL05/15/2014Sphere 3D Corporation (ANY)$3.47$3.0309/30/201414.59%123.83%
DTV05/18/2014AT&T, Inc. (T)$95.00$84.2005/31/201512.83%16.37%
TWGP01/06/2014ACP Re Ltd. (N/A)$2.50$2.2411/15/201411.61%47.60%
LO07/15/2014Reynolds American Inc. (RAI)$67.13$60.5506/30/201510.86%12.55%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6109/30/201410.56%89.63%
COV06/15/2014Medtronic, Inc. (MDT)$95.66$87.1101/31/20159.81%21.57%
BYI08/01/2014Scientific Games Corporation (SGMS)$83.30$76.3001/31/20159.17%20.17%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.8106/30/20158.57%9.89%
OABC04/29/2014Southside Bancshares Inc. (SBSI)$26.61$24.6012/31/20148.18%22.13%

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

+LIN03/22/2014Media General, Inc. (MEG)Special Conditions$2.6 billion$27.82$22.41763,93703/31/201524.14%39.16%
+OVRL05/15/2014Sphere 3D Corporation (ANY)All Stock$81.13 million$3.47$3.0323,70709/30/201414.59%123.83%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$84.202,514,58705/31/201512.83%16.37%
+TWGP01/06/2014ACP Re Ltd. (N/A)All Cash$172.1$2.50$2.24114,56311/15/201411.61%47.60%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$67.13$60.551,716,47306/30/201510.86%12.55%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.61148,21609/30/201410.56%89.63%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$95.66$87.113,957,23301/31/20159.81%21.57%
+BYI08/01/2014Scientific Games Corporation (SGMS)All Cash$5.1 billion$83.30$76.30441,41201/31/20159.17%20.17%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$16.812,238,67606/30/20158.57%9.89%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$26.61$24.6026,00412/31/20148.18%22.13%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$3.94$3.672,05009/19/20147.48%85.26%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$23.18$21.802,35011/15/20146.33%25.96%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$157.03$148.311,676,17212/31/20145.88%15.90%
+MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)All Cash$693 million$22.60$21.47194,59409/30/20145.26%44.68%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.08$9.6052,304,46912/31/20144.95%13.38%
+QRE07/24/2014Breitburn Energy Partners L.P. (BBEP)All Stock$3 billion$21.47$20.49269,30401/31/20154.77%10.48%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$34.601,590,63612/31/20144.48%12.11%
+TRLA07/28/2014Zillow, Inc. (Z)All Stock$3.5 billion$61.66$59.14983,54703/31/20154.27%6.92%
+GECR06/23/2014State Bank Financial Corporation (STBZ)Special Conditions$82 million$22.35$21.5589003/31/20153.71%6.02%
+CHRM05/19/2014Engadin Parent Limited (N/A)Special ConditionsN/A$4.70$4.541,11009/30/20143.52%29.91%
+FRNK07/15/2014Towne Bank (TOWN)All Stock$275 million$20.64$19.9924,42712/31/20143.23%8.74%
+KMP08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$101.63$98.909,652,50612/31/20142.76%7.46%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$40.35$39.332,64812/31/20142.60%7.04%
+SUSS04/28/2014Energy Transfer Partners, L.P. (ETP)All Stock$1.8 billion$83.50$81.55344,31709/30/20142.39%20.26%
+PTEK04/30/2014Multimedia Games, Inc. (N/A)All CashN/A$1.35$1.325,88412/31/20142.27%6.14%
+ENVE06/30/2014Consolidated Communications Holdings Inc. (CNSL)All Stock$350 million$17.63$17.2435,62112/31/20142.27%6.14%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$19.33$18.913,306,87212/31/20142.22%6.00%
+EPB08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$43.81$42.923,880,86912/31/20142.06%5.58%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$67.61$66.301,358,80806/30/20151.98%2.29%
+KMR08/10/2014Kinder Morgan, Inc. (KMI)All StockN/A$102.95$101.011,780,05412/31/20141.92%5.19%
+SPBC05/05/2014Green Bank (N/A)All Cash$46.2 million$29.55$29.002,33409/30/20141.90%16.10%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.70$8.54110,60210/31/20141.82%8.97%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$32.78$32.23300,36812/31/20141.71%4.62%
+SPCHA06/30/2014Vestis Retail Group, LLC (N/A)All CashN/A$1.20$1.1815409/30/20141.61%13.66%
+DCIN05/15/2014Carmike Cinemas Inc. (CKEC)All StockN/A$6.07$5.9927,09109/30/20141.34%11.41%
+TWTC06/16/2014Level 3 Communications, Inc. (LVLT)Cash Plus Stock$7.3 billion$39.39$38.901,804,18612/31/20141.25%3.38%
+FRF08/12/2014Tiptree Financial Inc. (TIPT)All Cash$218 million$10.00$9.88217,01701/31/20151.21%2.67%
+PIKE08/04/2014Court Square Capital Partners & J. Eric Pike, the Company�s Chairman and Chief Executive Officer (N/A)All CashN/A$12.00$11.86509,00012/31/20141.18%3.19%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.22780,66301/31/20151.13%2.48%
+IMCB07/23/2014Columbia Banking System Inc. (COLB)Cash Plus Stock$121.5 million$18.41$18.22N/A12/31/20141.04%2.81%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$10.96$10.851,631,05612/31/20141.02%2.75%
+NBTF08/04/2014Peoples Bancorp Inc. (PEBO)Cash Plus Stock$109 million$29.38$29.1024103/31/20150.96%1.56%
+THRD06/04/2014National Penn Bancshares Inc. (NPBC)All Stock$138 million$42.16$41.763,02312/31/20140.95%2.58%
+KOG07/13/2014Whiting Petroleum Corp. (WLL)All Stock$6 billion$14.98$14.873,870,70312/31/20140.71%1.93%
+ROC07/15/2014Albemarle Corporation (ALB)Cash Plus Stock$6.2 billion$80.03$79.482,080,75803/31/20150.69%1.11%
+URS07/13/2014AECOM Technology Corporation (ACM)Cash Plus Stock$6 billion$59.75$59.42601,16210/31/20140.56%2.78%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.111,794,27109/30/20150.52%0.46%
+GFIG07/30/2014CME Group (N/A)All CashN/A$4.55$4.53508,25201/31/20150.44%0.97%
+PEOP08/05/2014Independent Bank Corp. (INDB)All Stock$130.6 million$19.80$19.7225,04503/31/20150.41%0.66%
+HSH07/02/2014Tyson Foods, Inc. (TSN)All Cash$8.55 billion$63.00$62.751,836,79009/27/20140.40%3.64%
+MCRS06/23/2014Oracle Corporation (ORCL)All Cash$4.6 billion$68.00$67.77897,60612/31/20140.34%0.92%
+MDCI06/25/2014Owens & Minor, Inc. (OMI)All Cash$208 million$13.80$13.7847,02212/31/20140.15%0.39%
+MEAS06/18/2014TE Connectivity Ltd. (TEL)All Cash$1.7 billion$86.00$85.99145,21712/31/20140.01%0.03%
+DFZ05/02/2014Mill Road Capital (N/A)All Cash$215 million$19.00$19.0047,61209/30/20140.00%0.00%
+VITC07/02/2014The Kroger Co. (KR)All Cash$280 million$8.00$8.00262,20309/30/20140.00%0.00%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$21.04$21.05152,24309/30/2014-0.03%-0.23%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$21.08$21.095,07009/30/2014-0.03%-0.29%
+UNS12/11/2013Fortis, Inc. (N/A)All Cash$4.3 billion$60.25$60.594,142,75212/31/2014-0.56%-1.52%
+OBAF04/08/2014F.N.B. Corporation (FNB)All Stock$94 million$21.25$21.4240809/30/2014-0.81%-6.84%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$76.061,716,20801/31/2015-2.05%-4.51%
+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$5.57127,85209/30/2014-2.15%-18.29%
+ARX05/20/2014Cobham plc (N/A)All Cash$1.46 billion$10.50$10.7681,62909/30/2014-2.42%-20.51%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$6.93$7.24181,20912/31/2014-4.25%-11.50%
+AUXL06/26/2014QLT Inc. (QLTI)All StockN/A$16.09$17.35864,28212/31/2014-7.28%-19.68%
+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$23.8038,89012/31/2014-18.07%-48.85%

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

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