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Merger Arbitrage Mondays – August 4, 2014

  • August 3, 2014

Merger Activity decreased last week with four new mergers announced and four 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 2014101
Total Number of Deals Not Completed in 20142
Total Number of Pending Deals
Cash Deals24
Stock Deals19
Stock & Cash Deals13
Special Conditions7
Total Number of Pending Deals63
Total Deal Size$465.66 billion

New Deals:

  1. The acquisition of Family Dollar Stores (FDO) by Dollar Tree (DLTR) for $9.2 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Family Dollar Stores will receive $59.60 in cash and $14.90 in Dollar Tree stock. The stock portion will be subject to a collar such that Family Dollar shareholders will receive 0.2484 Dollar Tree shares if the average Dollar Tree trading price during a specified period preceding closing is equal to or greater than $59.98 and 0.3036 Dollar Tree shares if this average trading price is less than or equal to $49.08. If the average trading price of Dollar Tree stock during this period is between $49.08 and $59.98, Family Dollar shareholders will receive a number of shares between 0.2484 and 0.3036 equal to $14.90 in value. On account of the collar, we are treating this deal as a cash deal that is worth $74.50/share.
  2. The acquisition of Trulia (TRLA) by Zillow (Z) for $3.5 billion in an all stock deal. Under the terms of the agreement, shareholders of Trulia will receive 0.444 Class A Common Stock of Zillow for each share of Trulia.
  3. The acquisition of GFI Group (GFIG) by the CME Group in a two step transaction. CME Group will first acquire all of the outstanding shares of GFI Group in exchange for $4.55 per share in CME Group Class A Common Stock. Immediately following the acquisition of GFI Group, a private consortium of GFI Group management, led by current Executive Chairman Michael Gooch, CEO Colin Heffron and Managing Director Nick Brown, will acquire GFI Group’s wholesale brokerage and clearing businesses for $165M in cash and the assumption, at closing, of approximately $63M of unvested deferred compensation and other liabilities. After completion of the transaction, the wholesale brokerage business, including the Kyte Group, will continue as a private company with its management and operations largely unchanged.
  4. The acquisition of Bally Technologies (BYI) by Scientific Games Corporation (SGMS) for $5.1 billion or $83.30 per share in cash.
  5. The acquisition of Intervest Bancshares (IBCA) by Bank of the Ozarks (OZRK) for $228.5 million in an all stock deal. The number of Company shares to be issued will be determined based on the Company’s ten day average closing stock price as of the fifth business day prior to the closing date, subject to a minimum and maximum price of $23.95 and $39.91, respectively.

Closed Deals:

  1. The acquisition of Noah Education Holdings (NED) by Rainbow Education Holding Limited on July 30, 2014. It took 119 days for this deal to be completed.
  2. The acquisition of Schawk (SGK) by Matthews International Corporation (MATW) on July 30, 2014. It took 135 days for this deal to be completed.
  3. The acquisition of Equal Energy (EQU) by Petroflow Energy Corporation on July 31, 2014. It took 234 days for this deal to be completed.
  4. The acquisition of Emeritus (ESC) by Brookdale Senior Living (BKD) on July 31, 2014. It took 161 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$2.1611/15/201415.74%55.78%
OVRL05/15/2014Sphere 3D Corporation (ANY)$3.43$3.0909/30/201411.04%70.71%
LO07/15/2014Reynolds American Inc. (RAI)$66.72$60.3906/30/201510.48%11.59%
DTV05/18/2014AT&T, Inc. (T)$95.00$86.1105/31/201510.32%12.56%
SPCHA06/30/2014Vestis Retail Group, LLC (N/A)$1.20$1.09509/30/20149.59%61.40%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.7806/30/20158.76%9.69%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6407/30/20148.54%-623.17%
COV06/15/2014Medtronic, Inc. (MDT)$93.96$86.9301/31/20158.09%16.41%
LIN03/22/2014Media General, Inc. (MEG)$27.82$25.8103/31/20157.79%11.89%
BYI08/01/2014Scientific Games Corporation (SGMS)$83.30$77.7001/31/20157.21%14.61%

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$2.16245,22211/15/201415.74%55.78%
+OVRL05/15/2014Sphere 3D Corporation (ANY)All Stock$81.13 million$3.43$3.0964,59709/30/201411.04%70.71%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$66.72$60.393,155,94006/30/201510.48%11.59%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$86.111,884,45205/31/201510.32%12.56%
+SPCHA06/30/2014Vestis Retail Group, LLC (N/A)All CashN/A$1.20$1.09525,33709/30/20149.59%61.40%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$16.787,926,70506/30/20158.76%9.69%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.6410,38107/30/20148.54%0.00%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$93.96$86.933,207,54201/31/20158.09%16.41%
+LIN03/22/2014Media General, Inc. (MEG)Special Conditions$2.6 billion$27.82$25.81235,66703/31/20157.79%11.89%
+BYI08/01/2014Scientific Games Corporation (SGMS)All Cash$5.1 billion$83.30$77.7018,887,70401/31/20157.21%14.61%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$26.13$24.5520,43712/31/20146.44%15.78%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$3.96$3.725809/19/20146.32%50.14%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$153.50$145.881,392,04712/31/20145.22%12.79%
+CHRM05/19/2014Engadin Parent Limited (N/A)Special ConditionsN/A$4.70$4.4763,50009/30/20145.15%32.95%
+TRLA07/28/2014Zillow, Inc. (Z)All Stock$3.5 billion$63.45$60.481,696,47803/31/20154.91%7.49%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$34.461,367,73012/31/20144.90%12.01%
+QRE07/24/2014Breitburn Energy Partners L.P. (BBEP)All Stock$3 billion$20.71$19.79466,60401/31/20154.64%9.40%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.08$9.631,835,29512/31/20144.63%11.35%
+MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)All Cash$693 million$22.60$21.60849,48609/30/20144.63%29.65%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$19.08$18.373,237,70012/31/20143.86%9.44%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$22.31$21.511,98811/15/20143.72%13.19%
+IMCB07/23/2014Columbia Banking System Inc. (COLB)Cash Plus Stock$121.5 million$18.44$17.8036212/31/20143.57%8.74%
+FRNK07/15/2014Towne Bank (TOWN)All Stock$275 million$20.36$19.6925,11712/31/20143.38%8.29%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$68.22$66.14590,86706/30/20153.15%3.48%
+QCOR04/07/2014Mallinckrodt plc (MNK)Cash Plus Stock$5.6 billion$92.69$89.992,248,64409/30/20143.00%19.22%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$33.59$32.72367,03712/31/20142.66%6.52%
+THRD06/04/2014National Penn Bancshares Inc. (NPBC)All Stock$138 million$42.83$41.7737612/31/20142.54%6.23%
+ENVE06/30/2014Consolidated Communications Holdings Inc. (CNSL)All Stock$350 million$16.66$16.2528,16112/31/20142.53%6.21%
+DCIN05/15/2014Carmike Cinemas Inc. (CKEC)All StockN/A$5.62$5.4915,51709/30/20142.33%14.92%
+GECR06/23/2014State Bank Financial Corporation (STBZ)Special Conditions$82 million$22.35$21.852,35303/31/20152.29%3.49%
+PTEK04/30/2014Multimedia Games, Inc. (N/A)All CashN/A$1.35$1.325,28612/31/20142.27%5.57%
+GFIG07/30/2014CME Group (N/A)All CashN/A$4.55$4.461,218,05001/31/20152.02%4.09%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.48$8.3251,17410/31/20141.94%8.06%
+SPBC05/05/2014Green Bank (N/A)All Cash$46.2 million$29.55$28.9930009/30/20141.93%12.37%
+KOG07/13/2014Whiting Petroleum Corp. (WLL)All Stock$6 billion$14.94$14.729,289,69512/31/20141.49%3.64%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$40.76$40.181,02012/31/20141.45%3.55%
+DFZ05/02/2014Mill Road Capital (N/A)All Cash$215 million$19.00$18.7643,43009/30/20141.28%8.19%
+URS07/13/2014AECOM Technology Corporation (ACM)Cash Plus Stock$6 billion$58.02$57.342,130,74510/31/20141.19%4.93%
+SUSS04/28/2014Energy Transfer Partners, L.P. (ETP)All Stock$1.8 billion$81.44$80.54243,72709/30/20141.11%7.13%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$20.81$20.599,90309/30/20141.06%6.82%
+ROC07/15/2014Albemarle Corporation (ALB)Cash Plus Stock$6.2 billion$80.31$79.522,568,87903/31/20150.99%1.51%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.361,422,49301/31/20150.92%1.87%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.011,731,65109/30/20150.89%0.77%
+NDZ03/28/2014Sterigenics (N/A)All Cash$727 million$13.00$12.94240,51812/31/20140.46%1.14%
+OBAF04/08/2014F.N.B. Corporation (FNB)All Stock$94 million$21.53$21.4433109/30/20140.43%2.76%
+MCRS06/23/2014Oracle Corporation (ORCL)All Cash$4.6 billion$68.00$67.742,247,73712/31/20140.38%0.94%
+ZIPR07/15/2014Realogy Holdings Corp. (RLGY)All Cash$166 million$6.75$6.73100,93809/30/20140.30%1.90%
+HSH07/02/2014Tyson Foods, Inc. (TSN)All Cash$8.55 billion$63.00$62.831,837,93409/27/20140.27%1.83%
+VITC07/02/2014The Kroger Co. (KR)All Cash$280 million$8.00$7.98134,60109/30/20140.25%1.60%
+IDIX06/09/2014Merck & Co. Inc. (MRK)All Cash$3.85 billion$24.50$24.441,390,84109/30/20140.25%1.57%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$10.75$10.721,480,37112/31/20140.24%0.59%
+MDCI06/25/2014Owens & Minor, Inc. (OMI)All Cash$208 million$13.80$13.7859,57112/31/20140.15%0.36%
+PLXT06/24/2014Avago Technologies Limited (AVGO)All Cash$293 million$6.50$6.50241,48311/03/20140.00%0.00%
+MEAS06/18/2014TE Connectivity Ltd. (TEL)All Cash$1.7 billion$86.00$86.02139,90212/31/2014-0.02%-0.06%
+TWTC06/16/2014Level 3 Communications, Inc. (LVLT)Cash Plus Stock$7.3 billion$40.24$40.30764,10612/31/2014-0.15%-0.36%
+ARX05/20/2014Cobham plc (N/A)All Cash$1.46 billion$10.50$10.5286,30509/30/2014-0.19%-1.22%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$21.08$21.1551,34209/30/2014-0.32%-2.03%
+UNS12/11/2013Fortis, Inc. (N/A)All Cash$4.3 billion$60.25$60.46358,38212/31/2014-0.35%-0.85%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$75.853,210,92901/31/2015-1.78%-3.61%
+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$5.5861,86609/30/2014-2.33%-14.92%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$7.03$7.20131,32212/31/2014-2.37%-5.81%
+AUXL06/26/2014QLT Inc. (QLTI)All StockN/A$18.44$19.56842,55112/31/2014-5.73%-14.04%
+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$23.4782,68612/31/2014-16.92%-41.44%

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

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