Merger Arbitrage Mondays – October 13, 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:

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.

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