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Merger Arbitrage Mondays – August 25, 2014

  • August 24, 2014

Merger Activity decreased last week with two 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 2014111
Total Number of Deals Not Completed in 20142
Total Number of Pending Deals
Cash Deals21
Stock Deals20
Stock & Cash Deals14
Special Conditions7
Total Number of Pending Deals62
Total Deal Size$468.99 billion

New Deals:

  1. The acquisition of International Rectifier Corporation (IRF) by Infineon Technologies AG for $2.4 billion or $40.00 per share in cash.
  2. The acquisition of Peregrine Semiconductor Corporation (PSMI) by Murata Electronics North America for $471 million or $12.50 per share in cash.

Deal Updates:

  1. On August 20, 2014, LIN Media (LIN) and Media General (MEGannounced an amendment to their merger, where the merger consideration for each LIN Media common share will now be either $25.97 in cash or 1.4714 shares of the new holding company, subject to proration. The maximum cash amount that will be paid to the LIN shareholders remains $763 million.
  2. On August 21, 2014, Family Dollar Stores (FDO) announced that its Board of Directors has unanimously rejected the non-binding proposal made by Dollar General Corporation (DG) on the basis of antitrust regulatory considerations. In addition, the Family Dollar Board unanimously reaffirmed its recommendation in support of the merger agreement with Dollar Tree, Inc. (DLTR).

Closed Deals:

  1. The acquisition of Taylor Capital Group (TAYC) by MB Financial (MBFI) on August 18, 2014. It took 399 days for this deal to be completed.
  2. The acquisition of Digital Cinema Destinations (DCIN) by Carmike Cinemas (CKEC) on August 18, 2013. It took 95 days for this deal to be completed.
  3. The acquisition of Vitacost.com (VITC) by The Kroger Co.(KR) on August 18, 2013. It took 47 days for this deal to be completed.
  4. The acquisition of Sport Chalet (SPCHA) by Vestis Retail Group on August 19, 2014. It took 50 days for this deal to be completed.
  5. The acquisition of UNS Energy Corporation (UNS) by Fortis on August 20, 2014. It took 252 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$2.1111/15/201418.48%82.27%
DTV05/18/2014AT&T, Inc. (T)$95.00$84.5505/31/201512.36%16.17%
LO07/15/2014Reynolds American Inc. (RAI)$67.37$60.4706/30/201511.41%13.48%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$4.01$3.6509/19/20149.74%142.22%
LIN03/22/2014Media General, Inc. (MEG)$25.97$23.8503/31/20158.89%14.88%
COV06/15/2014Medtronic, Inc. (MDT)$95.98$88.2601/31/20158.75%20.08%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.7906/30/20158.70%10.27%
OVRL05/15/2014Sphere 3D Corporation (ANY)$3.74$3.4409/30/20148.65%87.70%
OABC04/29/2014Southside Bancshares Inc. (SBSI)$27.43$25.3012/31/20148.43%24.05%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6509/30/20147.88%79.88%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.


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

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