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Merger Arbitrage Mondays – September 22, 2014

  • September 21, 2014

Merger Activity decreased last week with three new mergers announced and three 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 2014119
Total Number of Deals Not Completed in 20142
Total Number of Pending Deals
Cash Deals24
Stock Deals19
Stock & Cash Deals16
Special Conditions8
Total Number of Pending Deals67
Total Deal Size$513.59 billion

New Deals:

  1. The acquisition of TRW Automotive Holdings (TRW) by ZF Friedrichshafen AG for $13.5 billion or $105.60 per share in cash.
  2. The acquisition of Glimcher Realty Trust (GRT) by Washington Prime Group (WPG) in a cash plus stock deal. Under the terms of the agreement, shareholders of Glimcher Realty Trust will receive, for each Glimcher share, $10.40 in cash and 0.1989 of a share in WPG stock at closing.
  3. The acquisition of Concur Technologies (CNQR) by SAP SE (SAP) for $8.3 billion or $129 per share in cash.

Deal Updates:

  1. On September 16, 2014, Endo International (ENDP) announced that it has delivered a proposal to acquire all of the outstanding shares of Auxilium Pharmaceuticals (AUXL) for a per share consideration of $28.10 in a cash and stock transaction valued at $2.2 billion.
  2. On September 17, 2014, the Board of Directors of Family Dollar Stores (FDO) unanimously recommended that Family Dollars shareholders reject the unsolicited conditional tender offer made by Dollar General Corporation (DG) and not tender their shares. In conjunction with its rejection of Dollar Generals offer, Family Dollars Board unanimously reaffirmed its recommendation in support of the transaction with Dollar Tree (DLTR).
  3. On September 18, 2014, RF Micro Devices (RFMD) and TriQuint Semiconductor (TQNT) revealed that the holding company under which the companies will combine in a merger of equals will be named QorvoTM, Inc. Qorvo is expected to be traded on the NASDAQ Global Stock Market under the ticker symbol QRVO following closing of the merger.

Closed Deals:

  1. The acquisition of Aeroflex Holding (ARX) by Cobham plc on September 15, 2014. It took 118 days for this deal to be completed.
  2. The acquisition of Tower Group International (TWGP) by ACP Re Ltd. on September 16, 2014. It took 253 days for this deal to be completed.
  3. The acquisition of OBA Financial Services (OBAF) by F.N.B. Corporation (FNB) on September 19, 2014. It took 164 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

LO07/15/2014Reynolds American Inc. (RAI)$67.22$59.4006/30/201513.17%17.11%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$4.09$3.6309/19/201412.62%-1535.61%
LIN03/22/2014Media General, Inc. (MEG)$25.97$23.4403/31/201510.79%20.73%
MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)$22.60$20.7309/30/20149.02%411.57%
COV06/15/2014Medtronic, Inc. (MDT)$98.50$90.8501/31/20158.42%23.45%
DTV05/18/2014AT&T, Inc. (T)$95.00$87.7205/31/20158.30%12.07%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.8806/30/20158.12%10.54%
OABC04/29/2014Southside Bancshares Inc. (SBSI)$28.17$26.0712/31/20148.07%29.46%
TWC02/13/2014Comcast Corporation (CMCSA)$163.13$153.1612/31/20146.51%23.75%
SWY03/06/2014AB Acquisition LLC (N/A)$36.15$34.2812/31/20145.46%19.91%

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

+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$67.22$59.403,337,34306/30/201513.17%17.11%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$4.09$3.6317,96809/19/201412.62%0.00%
+LIN03/22/2014Media General, Inc. (MEG)Special Conditions$2.6 billion$25.97$23.44531,33103/31/201510.79%20.73%
+MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)All Cash$693 million$22.60$20.73257,85309/30/20149.02%411.57%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$98.50$90.853,370,22701/31/20158.42%23.45%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$87.726,932,71305/31/20158.30%12.07%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$16.882,916,05906/30/20158.12%10.54%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$28.17$26.0763,72612/31/20148.07%29.46%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$163.13$153.162,398,81312/31/20146.51%23.75%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$34.281,299,83712/31/20145.46%19.91%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.73$10.233,603,79012/31/20144.88%17.80%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.7025,71309/30/20144.71%214.71%
+TRLA07/28/2014Zillow, Inc. (Z)All Stock$3.5 billion$58.09$55.59558,98803/31/20154.49%8.63%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$22.60$21.6710611/15/20144.29%29.02%
+QRE07/24/2014Breitburn Energy Partners L.P. (BBEP)All Stock$3 billion$21.24$20.37443,16501/31/20154.27%11.90%
+BYI08/01/2014Scientific Games Corporation (SGMS)All Cash$5.1 billion$83.30$80.71589,40201/31/20153.21%8.94%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$102.503,405,96406/30/20153.02%3.93%
+FRNK07/15/2014Towne Bank (TOWN)All Stock$275 million$19.81$19.2559,42812/31/20142.91%10.62%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$68.44$66.77564,71506/30/20152.50%3.24%
+CNVR09/11/2014Alliance Data Systems Corporation (ADS)Special Conditions$2.3 billion$35.00$34.273,172,42612/31/20142.13%7.78%
+CPWR09/02/2014Thoma Bravo, LLC (N/A)All Cash$2.5 billion$10.92$10.703,629,85501/31/20152.06%5.73%
+KMP08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$94.04$92.154,375,66512/31/20142.05%7.49%
+EPB08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$40.54$39.721,849,79712/31/20142.05%7.49%
+KMR08/10/2014Kinder Morgan, Inc. (KMI)All StockN/A$94.35$92.61932,40912/31/20141.88%6.86%
+THRD06/04/2014National Penn Bancshares Inc. (NPBC)All Stock$138 million$41.95$41.2151,22712/31/20141.79%6.53%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$48.51$47.6736,05603/31/20151.76%3.37%
+CNQR09/18/2014SAP SE (SAP)All Cash$8.3 billion$129.00$126.8223,670,17403/31/20151.72%3.30%
+GECR06/23/2014State Bank Financial Corporation (STBZ)Special Conditions$82 million$22.35$22.001,00003/31/20151.59%3.06%
+CHRM05/19/2014Engadin Parent Limited (N/A)Special ConditionsN/A$4.70$4.637,75609/30/20141.51%68.98%
+IRF08/20/2014Infineon Technologies AG (IFNNY)All Cash$2.4 billion$40.00$39.421,144,76801/31/20151.47%4.10%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$19.83$19.575,321,82612/31/20141.34%4.89%
+ENVE06/30/2014Consolidated Communications Holdings Inc. (CNSL)All Stock$350 million$18.54$18.3147,41212/31/20141.27%4.62%
+KOG07/13/2014Whiting Petroleum Corp. (WLL)All Stock$6 billion$14.20$14.044,881,14112/31/20141.14%4.18%
+FRF08/12/2014Tiptree Financial Inc. (TIPT)All Cash$218 million$10.00$9.89103,50101/31/20151.11%3.10%
+SPBC05/05/2014Green Bank (N/A)All Cash$46.2 million$29.55$29.2544209/30/20141.03%46.79%
+GRT09/16/2014Washington Prime Group Inc. (WPG)Cash Plus Stock$4.3 billion$13.81$13.6811,527,48003/31/20150.94%1.81%
+TWTC06/16/2014Level 3 Communications, Inc. (LVLT)Cash Plus Stock$7.3 billion$43.06$42.691,214,13912/31/20140.87%3.17%
+PSMI08/22/2014Murata Electronics North America, Inc. (N/A)All Cash$471 million$12.50$12.40502,28701/31/20150.81%2.25%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.48701,55701/31/20150.75%2.09%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$31.99$31.76451,77812/31/20140.72%2.64%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.92$8.86143,64910/31/20140.65%6.11%
+NBTF08/04/2014Peoples Bancorp Inc. (PEBO)Cash Plus Stock$109 million$29.99$29.8322103/31/20150.55%1.06%
+COBR08/28/2014Monomoy Capital Partners II, L.P. (N/A)All CashN/A$4.30$4.28129,54812/31/20140.47%1.71%
+BOLT09/03/2014Teledyne Technologies Inc. (TDY)All Cash$171 million$22.00$21.9252,24112/31/20140.36%1.33%
+PIKE08/04/2014Court Square Capital Partners & J. Eric Pike, the Company�s Chairman and Chief Executive Officer (N/A)All CashN/A$12.00$11.96898,24112/31/20140.33%1.22%
+COBK09/10/2014Cape Bancorp, Inc. (CBNJ)All Stock$55 million$13.34$13.3025,16006/30/20140.33%0.00%
+MDCI06/25/2014Owens & Minor, Inc. (OMI)All Cash$208 million$13.80$13.7646,69412/31/20140.29%1.06%
+MEAS06/18/2014TE Connectivity Ltd. (TEL)All Cash$1.7 billion$86.00$85.82212,31812/31/20140.21%0.77%
+ITMN08/24/2014Roche (N/A)All Cash$8.3 billion$74.00$73.855,492,70312/31/20140.20%0.74%
+MGAM09/08/2014Global Cash Access Holdings, Inc. (GCA)All Cash$1.2 billion$36.50$36.43485,90103/31/20150.19%0.37%
+BNNY09/08/2014General Mills, Inc. (GIS)All Cash$820 million$46.00$45.94503,21812/31/20140.13%0.48%
+URS07/13/2014AECOM Technology Corporation (ACM)Cash Plus Stock$6 billion$60.15$60.10555,99610/31/20140.08%0.79%
+ROC07/15/2014Albemarle Corporation (ALB)Cash Plus Stock$6.2 billion$81.41$81.37719,75803/31/20150.05%0.10%
+PTEK04/30/2014Multimedia Games, Inc. (N/A)All CashN/A$1.35$1.3558,71712/31/20140.00%0.00%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.301,190,27609/30/2015-0.18%-0.18%
+IMCB07/23/2014Columbia Banking System Inc. (COLB)Cash Plus Stock$121.5 million$19.37$19.412,90312/31/2014-0.22%-0.81%
+PEOP08/05/2014Independent Bank Corp. (INDB)All Stock$130.6 million$20.39$20.509,64903/31/2015-0.56%-1.07%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$6.99$7.06468,42212/31/2014-0.96%-3.52%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$40.92$41.3458212/31/2014-1.01%-3.70%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$10.32$10.432,806,81712/31/2014-1.08%-3.95%
+TAM09/11/2014Eastman Chemical Co. (EMN)All Cash$2.8 billion$26.00$26.44430,35412/31/2014-1.66%-6.07%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$21.86$22.5515,86309/30/2014-3.08%-140.36%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$78.761,150,43201/31/2015-5.41%-15.07%
+OVRL05/15/2014Sphere 3D Corporation (ANY)All Stock$81.13 million$3.60$3.8288,11809/30/2014-5.77%-263.13%
+GFIG07/30/2014CME Group (N/A)All CashN/A$4.55$5.472,616,13401/31/2015-16.82%-46.86%
+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$23.92227,67412/31/2014-18.48%-67.45%
+AUXL06/26/2014QLT Inc. (QLTI)All StockN/A$16.31$31.143,218,24112/31/2014-47.63%-173.87%

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

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