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Merger Arbitrage Mondays – September 29, 2014

  • September 28, 2014

Merger Activity increased last week with five new mergers announced and one deal 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 2014120
Total Number of Deals Not Completed in 20142
Total Number of Pending Deals
Cash Deals28
Stock Deals19
Stock & Cash Deals17
Special Conditions7
Total Number of Pending Deals71
Total Deal Size$539.23 billion

New Deals:

  1. The acquisition of Dresser-Rand Group (DRC) by Siemens for $7.6 billion or $83.00 per share in cash. Additional per share cash consideration of $0.55 shall be applied on the first day of each month starting March 1, 2015, until the closing occurs.
  2. The acquisition of Viasystems Group (VIAS) by TTM Technologies (TTMI) for $927 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Viasystems will receive per share consideration equal to $11.33 in cash and 0.706 shares of TTM common stock for each Viasystems share.
  3. The acquisition of Sigma-Aldrich Corporation (SIAL) by Merck KGaA for $17 billion or $140 per share in cash.
  4. The acquisition of CMS Bancorp (CMSB) by Putnam County Savings Bank for $25.4 million or $13.25 per share in cash.
  5. The acquisition of LipoScience (LPDX) by Laboratory Corp. of America Holdings (LH) for $85.3 million or $5.25 per share in cash.

Deal Updates:

  1. On September 23, 2014, Auxilium Pharma (AUXL) reviewed Endo International (ENDP)’s $2.2 billion or 28.10 per share offer and turned it down as it felt that the proposal grossly undervalued the company.

Closed Deals:

  1. The acquisition of Charm Communications (CHRM) by Engadin Parent Limited on September 24, 2014. It took 138 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)$25.97$22.2603/31/201516.67%33.24%
LO07/15/2014Reynolds American Inc. (RAI)$67.46$59.9506/30/201512.53%16.69%
DTV05/18/2014AT&T, Inc. (T)$95.00$87.0905/31/20159.08%13.59%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$4.00$3.6909/30/20148.51%3106.06%
MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)$22.60$20.9609/30/20147.82%2855.92%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.9406/30/20157.73%10.30%
OABC04/29/2014Southside Bancshares Inc. (SBSI)$28.19$26.2012/31/20147.59%29.77%
TWC02/13/2014Comcast Corporation (CMCSA)$155.94$145.0912/31/20147.48%29.35%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6609/30/20147.23%2638.55%
COV06/15/2014Medtronic, Inc. (MDT)$95.74$89.9801/31/20156.40%18.85%

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$25.97$22.26225,50703/31/201516.67%33.24%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$67.46$59.951,294,07906/30/201512.53%16.69%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$87.092,903,46105/31/20159.08%13.59%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$4.00$3.6940409/30/20148.51%3106.06%
+MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)All Cash$693 million$22.60$20.96115,95809/30/20147.82%2855.92%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$16.942,210,95306/30/20157.73%10.30%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$28.19$26.2042,18912/31/20147.59%29.77%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$155.94$145.091,483,66512/31/20147.48%29.35%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.6669,74809/30/20147.23%2638.55%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$95.74$89.984,895,86301/31/20156.40%18.85%
+OVRL05/15/2014Sphere 3D Corporation (ANY)All Stock$81.13 million$3.50$3.2936,79709/30/20146.23%2274.49%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.49$9.891,609,36912/31/20146.06%23.79%
+TRLA07/28/2014Zillow, Inc. (Z)All Stock$3.5 billion$54.09$51.29535,11303/31/20155.46%10.90%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$34.35952,60212/31/20145.24%20.57%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$22.60$21.6910411/15/20144.20%32.60%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$101.811,727,10206/30/20153.72%4.96%
+BYI08/01/2014Scientific Games Corporation (SGMS)All Cash$5.1 billion$83.30$80.52462,48801/31/20153.45%10.16%
+CMSB09/25/2014Putnam County Savings Bank (N/A)All Cash$25.4 million$13.25$12.8321,66006/30/20153.27%4.36%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$66.88$64.91274,50806/30/20153.04%4.04%
+QRE07/24/2014Breitburn Energy Partners L.P. (BBEP)All Stock$3 billion$20.26$19.71339,40901/31/20152.81%8.27%
+CPWR09/02/2014Thoma Bravo, LLC (N/A)All Cash$2.5 billion$10.92$10.663,383,35801/31/20152.44%7.18%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$136.771,241,94006/30/20152.36%3.15%
+IMCB07/23/2014Columbia Banking System Inc. (COLB)Cash Plus Stock$121.5 million$18.58$18.191,07012/31/20142.12%8.34%
+CNVR09/11/2014Alliance Data Systems Corporation (ADS)Special Conditions$2.3 billion$35.00$34.341,200,71612/31/20141.92%7.54%
+SPBC05/05/2014Green Bank (N/A)All Cash$46.2 million$29.55$29.0190109/30/20141.86%679.42%
+GRT09/16/2014Washington Prime Group Inc. (WPG)Cash Plus Stock$4.3 billion$13.84$13.594,574,65303/31/20151.86%3.71%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$47.40$46.55105,13803/31/20151.83%3.65%
+EPB08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$40.93$40.221,526,00812/31/20141.77%6.95%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$16.20$15.9228,90306/30/20151.77%2.35%
+CNQR09/18/2014SAP SE (SAP)All Cash$8.3 billion$129.00$126.781,430,93903/31/20151.75%3.49%
+ROC07/15/2014Albemarle Corporation (ALB)Cash Plus Stock$6.2 billion$79.89$78.57993,01503/31/20151.68%3.35%
+KMP08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$94.96$93.451,014,52712/31/20141.62%6.35%
+GECR06/23/2014State Bank Financial Corporation (STBZ)Special Conditions$82 million$22.35$22.00N/A03/31/20151.59%3.17%
+IRF08/20/2014Infineon Technologies AG (IFNNY)All Cash$2.4 billion$40.00$39.381,639,93701/31/20151.57%4.63%
+FRNK07/15/2014Towne Bank (TOWN)All Stock$275 million$19.31$19.0137,77912/31/20141.56%6.11%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$19.90$19.631,263,82512/31/20141.37%5.38%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.891,080,62309/30/20151.34%1.34%
+KMR08/10/2014Kinder Morgan, Inc. (KMI)All StockN/A$95.40$94.15332,15612/31/20141.32%5.19%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.68$8.5755,43110/31/20141.25%14.31%
+NBTF08/04/2014Peoples Bancorp Inc. (PEBO)Cash Plus Stock$109 million$29.83$29.4850703/31/20151.18%2.35%
+LPDX09/25/2014Laboratory Corp. of America Holdings (LH)All Cash$85.3 million$5.25$5.19375,81012/31/20141.16%4.54%
+PSMI08/22/2014Murata Electronics North America, Inc. (N/A)All Cash$471 million$12.50$12.36535,43501/31/20151.13%3.33%
+FRF08/12/2014Tiptree Financial Inc. (TIPT)All Cash$218 million$10.00$9.8917,90801/31/20151.11%3.27%
+ENVE06/30/2014Consolidated Communications Holdings Inc. (CNSL)All Stock$350 million$19.04$18.8517,64612/31/20141.00%3.91%
+TWTC06/16/2014Level 3 Communications, Inc. (LVLT)Cash Plus Stock$7.3 billion$41.21$40.82505,88612/31/20140.95%3.71%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.471,084,65901/31/20150.76%2.25%
+MGAM09/08/2014Global Cash Access Holdings, Inc. (GCA)All Cash$1.2 billion$36.50$36.30223,33603/31/20150.55%1.10%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$82.612,312,74706/30/20150.47%0.63%
+COBR08/28/2014Monomoy Capital Partners II, L.P. (N/A)All CashN/A$4.30$4.28383,68212/31/20140.47%1.83%
+KOG07/13/2014Whiting Petroleum Corp. (WLL)All Stock$6 billion$14.06$14.002,894,58812/31/20140.43%1.71%
+PIKE08/04/2014Court Square Capital Partners & J. Eric Pike, the Company�s Chairman and Chief Executive Officer (N/A)All CashN/A$12.00$11.95317,61812/31/20140.42%1.64%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$32.11$31.98627,99912/31/20140.40%1.55%
+BNNY09/08/2014General Mills, Inc. (GIS)All Cash$820 million$46.00$45.881,246,25512/31/20140.26%1.03%
+MEAS06/18/2014TE Connectivity Ltd. (TEL)All Cash$1.7 billion$86.00$85.80101,59912/31/20140.23%0.91%
+URS07/13/2014AECOM Technology Corporation (ACM)Cash Plus Stock$6 billion$58.36$58.25348,84710/31/20140.19%2.15%
+BOLT09/03/2014Teledyne Technologies Inc. (TDY)All Cash$171 million$22.00$21.9618,89212/31/20140.18%0.71%
+ITMN08/24/2014Roche (N/A)All Cash$8.3 billion$74.00$73.895,707,47312/31/20140.15%0.58%
+MDCI06/25/2014Owens & Minor, Inc. (OMI)All Cash$208 million$13.80$13.7868,18612/31/20140.15%0.57%
+PTEK04/30/2014Multimedia Games, Inc. (N/A)All CashN/A$1.35$1.352,31512/31/20140.00%0.00%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$10.52$10.53881,78912/31/2014-0.08%-0.32%
+COBK09/10/2014Cape Bancorp, Inc. (CBNJ)All Stock$55 million$13.27$13.313,77803/31/2015-0.28%-0.56%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$21.47$21.553,75109/30/2014-0.37%-136.33%
+THRD06/04/2014National Penn Bancshares Inc. (NPBC)All Stock$138 million$41.74$41.914,77812/31/2014-0.42%-1.63%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$40.29$40.501,19812/31/2014-0.53%-2.08%
+PEOP08/05/2014Independent Bank Corp. (INDB)All Stock$130.6 million$19.98$20.152,17003/31/2015-0.86%-1.72%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$7.04$7.14149,90012/31/2014-1.38%-5.40%
+TAM09/11/2014Eastman Chemical Co. (EMN)All Cash$2.8 billion$26.00$26.50568,98312/31/2014-1.89%-7.41%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$77.54925,08001/31/2015-3.92%-11.54%
+GFIG07/30/2014CME Group (N/A)All CashN/A$4.55$5.45696,33801/31/2015-16.51%-48.61%
+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$23.9927,73312/31/2014-18.72%-73.46%
+AUXL06/26/2014QLT Inc. (QLTI)All StockN/A$14.74$31.031,552,04112/31/2014-52.50%-206.05%

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

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