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Merger Arbitrage Mondays – October 13, 2014

  • October 12, 2014

Merger Activity decreased last week with four new mergers announced and two 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 2014127
Total Number of Deals Not Completed in 20142
Total Number of Pending Deals
Cash Deals28
Stock Deals19
Stock & Cash Deals19
Special Conditions8
Total Number of Pending Deals74
Total Deal Size$569.64 billion

New Deals:

  1. The acquisition of Durata Therapeutics (DRTX) by Actavis (ACT) for $675 million or $23.00 per share in cash and contingent value rights (CVRs) entitling the holder to receive additional cash payments of up to $5.00 per share if certain regulatory or commercial milestones related to Durata’s lead product DALVANCE™ are achieved. If DALVANCE™ is approved in Europe for ABSSSI, holders of the CVR will receive $1.00 per share. If DALVANCE™ is approved for single dose administration by the FDA, holders of the CVR will receive $1.00 per share. If a net global DALVANCE™ revenue threshold is met over a designated time period, holders of the CVR will receive $3.00 per share.
  2. The acquisition of Gentiva Health Services (GTIV) by Kindred Healthcare (KND) for $1.8 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Gentiva Health Services will receive $14.50 per share in cash and 0.257 shares of Kindred common stock.
  3. The acquisition of Auxilium Pharmaceuticals (AUXL) by Endo International (ENDP) for $2.6 billion. Subject to aggregate cash and equity consideration limits, Auxilium stockholders may elect one of three options with respect to transaction consideration: 100 percent equity which equates to 0.488 Endo shares per Auxilium share, 100 percent cash which equates to $33.25 per Auxilium share or a standard election of an equal mix of $16.625 in cash and 0.244 Endo shares per Auxilium share.  The total cash consideration will not exceed 50 percent of the total equity value and the equity consideration will not exceed 75 percent of the total equity value.
  4. A merger between Dawson Geophysical Company (DWSN) and TGC Industries (TGE) where current Dawson and TGC shareholders will own approximately 66% and 34% of the combined company respectively. Immediately prior to the transaction, TGC will implement a 1-for-3 reverse stock split. After the TGC reverse stock split, Dawson shareholders will receive 1.76 shares of TGC split-effected common stock for each share of Dawson common stock held at the effective time of the transaction, with cash to be paid in lieu of any fractional shares.

Deal Updates:

  1. On October 9, 2014, Auxilium Pharmaceuticals (AUXL) terminated its previous deal with QLT (QLTI) and agreed to be acquired by Endo International (ENDP)
  2. On October 9, 2014, Compuware (CPWR) announced the spin-off of Covisint (COVS). Based on the number of Compuware shares outstanding and shares deliverable under RSUs as of October 8, 2014, holders of Compuware common stock are expected to receive approximately 0.1402 shares of Covisint common stock in the distribution with respect to each outstanding share of Compuware common stock they own at the close of business on the record date, and holders of RSUs are expected to receive approximately 0.1402 shares of Covisint common stock in the distribution with respect to each share of Compuware common stock deliverable under the RSUs they hold at the close of business on the record date.

Closed Deals:

  1. The acquisition of Cobra Electronics (COBR) by Monomoy Capital Partners on October 8, 2014. It took 41 days for this deal to be completed.
  2. The acquisition of Measurement Specialties (MEAS) by TE Connectivity (TEL) on October 9, 2014. It took 113 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$22.0903/31/201517.56%37.94%
LO07/15/2014Reynolds American Inc. (RAI)$67.84$60.4806/30/201512.17%17.09%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$4.06$3.6410/30/201411.60%249.01%
DTV05/18/2014AT&T, Inc. (T)$95.00$86.2105/31/201510.20%16.18%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.6406/30/20159.68%13.58%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6609/30/20147.23%-202.97%
TWC02/13/2014Comcast Corporation (CMCSA)$151.28$141.2112/31/20147.13%32.96%
SWY03/06/2014AB Acquisition LLC (N/A)$36.15$33.8612/31/20146.76%31.25%
HCBK08/27/2012M&T Bank Corporation (MTB)$10.08$9.4512/31/20146.67%30.81%
MGAM09/08/2014Global Cash Access Holdings, Inc. (GCA)$36.50$34.2303/31/20156.63%14.32%

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$22.0978,02103/31/201517.56%37.94%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$67.84$60.482,778,16406/30/201512.17%17.09%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$4.06$3.643,45110/30/201411.60%249.01%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$86.211,881,46905/31/201510.20%16.18%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$16.642,759,26306/30/20159.68%13.58%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.6627,56109/30/20147.23%0.00%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$151.28$141.212,681,19312/31/20147.13%32.96%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$33.861,794,34112/31/20146.76%31.25%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.08$9.454,316,44012/31/20146.67%30.81%
+MGAM09/08/2014Global Cash Access Holdings, Inc. (GCA)All Cash$1.2 billion$36.50$34.231,245,90703/31/20156.63%14.32%
+TRLA07/28/2014Zillow, Inc. (Z)All Stock$3.5 billion$46.53$44.01782,56203/31/20155.72%12.35%
+QRE07/24/2014Breitburn Energy Partners L.P. (BBEP)All Stock$3 billion$15.97$15.121,962,33901/31/20155.60%18.58%
+MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)All Cash$693 million$22.60$21.45288,66910/08/20145.36%0.00%
+CPWR09/02/2014Thoma Bravo, LLC (N/A)All Cash$2.5 billion$10.92$10.393,072,41801/31/20155.10%16.93%
+AUXL10/09/2014Endo International plc (ENDP)Special Conditions$2.6 billion$33.25$31.773,663,74706/30/20154.66%6.54%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$27.64$26.4235,82112/31/20144.63%21.40%
+DWSN10/09/2014TGC Industries Inc. (TGE)All StockN/A$18.53$17.73116,88103/31/20154.53%9.78%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$22.31$21.3578911/15/20144.50%49.77%
+ROC07/15/2014Albemarle Corporation (ALB)Cash Plus Stock$6.2 billion$77.08$73.811,092,75003/31/20154.43%9.57%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$69.97$67.02301,29906/30/20154.40%6.18%
+BYI08/01/2014Scientific Games Corporation (SGMS)All Cash$5.1 billion$83.30$80.07865,12601/31/20154.03%13.39%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$101.611,385,91806/30/20153.93%5.51%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$96.48$92.933,902,92201/31/20153.82%12.67%
+CNVR09/11/2014Alliance Data Systems Corporation (ADS)Special Conditions$2.3 billion$35.00$33.781,493,33712/31/20143.61%16.69%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$15.55$15.0322,74506/30/20153.47%4.87%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$135.49909,19506/30/20153.33%4.67%
+CMSB09/25/2014Putnam County Savings Bank (N/A)All Cash$25.4 million$13.25$12.8540406/30/20153.11%4.37%
+CFN10/05/2014Becton, Dickinson and Company (BDX)Cash Plus Stock$12.2 billion$58.94$57.227,989,61006/30/20153.00%4.21%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$6.86$6.6695,02412/31/20143.00%13.85%
+GRT09/16/2014Washington Prime Group Inc. (WPG)Cash Plus Stock$4.3 billion$13.68$13.297,407,59603/31/20152.95%6.37%
+FRNK07/15/2014Towne Bank (TOWN)All Stock$275 million$19.43$18.8941,02512/31/20142.87%13.26%
+TIBX09/29/2014Vista Equity Partners (N/A)All Cash$4.3 billion$24.00$23.357,890,68612/31/20142.78%12.86%
+COBK09/10/2014Cape Bancorp, Inc. (CBNJ)All Stock$55 million$13.16$12.8610,59603/31/20152.33%5.04%
+GTIV10/09/2014Kindred Healthcare Inc. (KND)Cash Plus Stock$1.8 billion$19.89$19.462,852,34503/31/20152.23%4.82%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$30.89$30.23607,95812/31/20142.19%10.11%
+OVRL05/15/2014Sphere 3D Corporation (ANY)All Stock$81.13 million$2.91$2.8558,70109/30/20142.12%0.00%
+IRF08/20/2014Infineon Technologies AG (IFNNY)All Cash$2.4 billion$40.00$39.202,091,55501/31/20152.04%6.77%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$46.96$46.0247,59403/31/20152.04%4.40%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$11.07$10.884,675,67012/31/20141.78%8.21%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.781,530,13409/30/20151.76%1.82%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$81.761,872,35806/30/20151.52%2.13%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$16.11$15.884,089,42812/31/20141.47%6.79%
+KOG07/13/2014Whiting Petroleum Corp. (WLL)All Stock$6 billion$11.11$10.967,323,51712/31/20141.39%6.41%
+GECR06/23/2014State Bank Financial Corporation (STBZ)Special Conditions$82 million$22.35$22.057703/31/20151.36%2.94%
+SPBC05/05/2014Green Bank (N/A)All Cash$46.2 million$29.55$29.174,30009/30/20141.30%0.00%
+PIKE08/04/2014Court Square Capital Partners & J. Eric Pike, the Company�s Chairman and Chief Executive Officer (N/A)All CashN/A$12.00$11.85201,46612/31/20141.27%5.85%
+KMP08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$90.75$89.623,018,54912/31/20141.26%5.84%
+SMPL09/29/2014HomeStreet, Inc. (HMST)All StockN/A$16.42$16.234,21003/31/20151.17%2.53%
+FRF08/12/2014Tiptree Financial Inc. (TIPT)All Cash$218 million$10.00$9.8966,43501/31/20151.11%3.69%
+CNQR09/18/2014SAP SE (SAP)All Cash$8.3 billion$129.00$127.651,088,96303/31/20151.06%2.28%
+PSMI08/22/2014Murata Electronics North America, Inc. (N/A)All Cash$471 million$12.50$12.37221,27201/31/20151.05%3.49%
+TWTC06/16/2014Level 3 Communications, Inc. (LVLT)Cash Plus Stock$7.3 billion$37.27$36.90724,69612/31/20140.99%4.57%
+LPDX09/25/2014Laboratory Corp. of America Holdings (LH)All Cash$85.3 million$5.25$5.20203,16412/31/20140.96%4.44%
+EPB08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$39.12$38.751,210,79212/31/20140.95%4.39%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.381,749,52301/31/20150.89%2.97%
+URS07/13/2014AECOM Technology Corporation (ACM)Cash Plus Stock$6 billion$54.48$54.05707,29510/31/20140.80%16.29%
+ATHL09/29/2014Encana Corporation (ECA)All Cash$7.1 billion$58.50$58.082,660,97612/31/20140.72%3.34%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.20$8.1447,51010/31/20140.70%14.17%
+KMR08/10/2014Kinder Morgan, Inc. (KMI)All StockN/A$90.62$90.11916,08012/31/20140.57%2.64%
+ENVE06/30/2014Consolidated Communications Holdings Inc. (CNSL)All Stock$350 million$17.98$17.8860,03512/31/20140.56%2.57%
+MOVE09/30/2014News Corp (N/A)All Cash$950 million$21.00$20.911,159,92112/31/20140.43%1.99%
+BOLT09/03/2014Teledyne Technologies Inc. (TDY)All Cash$171 million$22.00$21.9176,65512/31/20140.41%1.90%
+TAM09/11/2014Eastman Chemical Co. (EMN)All Cash$2.8 billion$26.00$25.90297,82312/31/20140.39%1.78%
+BAGL09/29/2014JAB Holding Company (N/A)All Cash$374 million$20.25$20.18310,21012/31/20140.35%1.60%
+NBTF08/04/2014Peoples Bancorp Inc. (PEBO)Cash Plus Stock$109 million$30.04$29.9670203/31/20150.27%0.58%
+BNNY09/08/2014General Mills, Inc. (GIS)All Cash$820 million$46.00$45.931,178,60912/31/20140.15%0.70%
+IMCB07/23/2014Columbia Banking System Inc. (COLB)Cash Plus Stock$121.5 million$18.06$18.1497812/31/2014-0.46%-2.14%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$38.65$38.9060011/01/2014-0.64%-12.24%
+THRD06/04/2014National Penn Bancshares Inc. (NPBC)All Stock$138 million$39.79$40.5016,20612/31/2014-1.74%-8.05%
+PEOP08/05/2014Independent Bank Corp. (INDB)All Stock$130.6 million$19.77$20.20N/A03/31/2015-2.14%-4.63%
+DRTX10/06/2014Actavis plc (ACT)All Cash$675 million$23.00$23.56730,23401/31/2015-2.38%-7.89%
+AMBI09/29/2014Daiichi Sankyo Company, Ltd. (N/A)All Cash$410 million$15.00$15.4646,90412/31/2014-2.98%-13.75%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$77.501,394,89401/31/2015-3.87%-12.84%
+GFIG07/30/2014CME Group (N/A)All CashN/A$4.55$5.28285,97201/31/2015-13.83%-45.88%

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

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