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Merger Arbitrage Mondays – October 20, 2014

  • October 19, 2014

Merger Activity decreased last week with three 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 2014129
Total Number of Deals Not Completed in 20142
Total Number of Pending Deals
Cash Deals29
Stock Deals18
Stock & Cash Deals20
Special Conditions8
Total Number of Pending Deals75
Total Deal Size$577.68 billion

New Deals:

  1. The acquisition of Atlas Pipeline Partners (APL) by Targa Resources Partners (NGLS) for $5.8 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Atlas Pipeline Partners will receive a fixed ratio of 0.5846 units of Targa Resources Partners and $1.26 for each outstanding Atlas Pipeline common unit.
  2. The acquisition of Atlas Energy (ATLS) by Targa Resources (TRGP) for $1.9 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Atlas Energy will receive $9.12 in cash, 0.1809 of a share of TRGP common stock and a pro rata share in 100% of ATLS’ distributed non-midstream assets.
  3. The acquisition of Penford Corporation (PENX) by Ingredion Incorporated (INGR) for $340 million or $19.00 per share in cash.

Closed Deals:

  1. The acquisition of Enventis Corporation (ENVE) by Consolidated Communications Holdings (CNSL) on October 16, 2014. It took 108 days for this deal to be completed.
  2. The acquisition of URS Corporation (URS) by AECOM Technology Corporation (ACM) on October 17, 2014. It took 96 days for this deal to be completed.

Top 10 deals with largest spread:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

LO07/15/2014Reynolds American Inc. (RAI)$67.51$58.5906/30/201515.23%21.97%
COV06/15/2014Medtronic, Inc. (MDT)$94.45$82.2001/31/201514.91%52.82%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.0006/30/201514.06%20.29%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$4.05$3.60510/30/201412.47%455.11%
LIN03/22/2014Media General, Inc. (MEG)$25.97$23.1503/31/201512.18%27.45%
MGAM09/08/2014Global Cash Access Holdings, Inc. (GCA)$36.50$32.6303/31/201511.86%26.72%
DTV05/18/2014AT&T, Inc. (T)$95.00$85.0205/31/201511.74%19.21%
CPWR09/02/2014Thoma Bravo, LLC (N/A)$10.92$9.8601/31/201510.75%38.10%
AUXL10/09/2014Endo International plc (ENDP)$33.25$30.6306/30/20158.55%12.34%
OVRL05/15/2014Sphere 3D Corporation (ANY)$2.76$2.5409/30/20148.55%-156.06%

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$67.51$58.594,759,07206/30/201515.23%21.97%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$94.45$82.2018,361,36401/31/201514.91%52.82%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$16.002,257,62006/30/201514.06%20.29%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$4.05$3.60531,35110/30/201412.47%455.11%
+LIN03/22/2014Media General, Inc. (MEG)Special Conditions$2.6 billion$25.97$23.15287,01803/31/201512.18%27.45%
+MGAM09/08/2014Global Cash Access Holdings, Inc. (GCA)All Cash$1.2 billion$36.50$32.63352,07703/31/201511.86%26.72%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$85.022,629,81705/31/201511.74%19.21%
+CPWR09/02/2014Thoma Bravo, LLC (N/A)All Cash$2.5 billion$10.92$9.863,516,84601/31/201510.75%38.10%
+AUXL10/09/2014Endo International plc (ENDP)Special Conditions$2.6 billion$33.25$30.631,883,11106/30/20158.55%12.34%
+OVRL05/15/2014Sphere 3D Corporation (ANY)All Stock$81.13 million$2.76$2.5414,45209/30/20148.55%0.00%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.653,71509/30/20147.88%0.00%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$145.71$135.354,053,68312/31/20147.65%38.78%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$33.692,230,32212/31/20147.30%37.02%
+ROC07/15/2014Albemarle Corporation (ALB)Cash Plus Stock$6.2 billion$76.87$71.642,697,02103/31/20157.30%16.45%
+BYI08/01/2014Scientific Games Corporation (SGMS)All Cash$5.1 billion$83.30$77.73657,14801/31/20157.17%25.39%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$9.48$8.888,188,78712/31/20146.80%34.46%
+TRLA07/28/2014Zillow, Inc. (Z)All Stock$3.5 billion$46.69$43.83740,23503/31/20156.52%14.68%
+DWSN10/09/2014TGC Industries Inc. (TGE)All StockN/A$18.59$17.4591,11303/31/20156.51%14.66%
+SMPL09/29/2014HomeStreet, Inc. (HMST)All StockN/A$17.02$16.1445,00203/31/20155.45%12.28%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$100.501,334,48606/30/20155.07%7.32%
+APL10/13/2014Targa Resources Partners LP (NGLS)Cash Plus Stock$5.8 billion$38.39$36.641,147,47203/31/20154.79%10.78%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$71.81$68.72421,19406/30/20154.50%6.49%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$134.031,215,49606/30/20154.45%6.43%
+MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)All Cash$693 million$22.60$21.66288,74610/08/20144.34%0.00%
+TIBX09/29/2014Vista Equity Partners (N/A)All Cash$4.3 billion$24.00$23.024,722,09012/31/20144.26%21.58%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$27.77$26.6519,06912/31/20144.21%21.36%
+CFN10/05/2014Becton, Dickinson and Company (BDX)Cash Plus Stock$12.2 billion$58.46$56.344,318,52106/30/20153.76%5.42%
+CMSB09/25/2014Putnam County Savings Bank (N/A)All Cash$25.4 million$13.25$12.863,57806/30/20153.03%4.38%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$80.751,766,52506/30/20152.79%4.02%
+GRT09/16/2014Washington Prime Group Inc. (WPG)Cash Plus Stock$4.3 billion$13.70$13.346,312,46903/31/20152.68%6.04%
+FRNK07/15/2014Towne Bank (TOWN)All Stock$275 million$20.43$19.9022,88212/31/20142.64%13.40%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$45.04$43.9628,11503/31/20152.46%5.55%
+GTIV10/09/2014Kindred Healthcare Inc. (KND)Cash Plus Stock$1.8 billion$19.69$19.24271,77003/31/20152.35%5.29%
+CNVR09/11/2014Alliance Data Systems Corporation (ADS)Special Conditions$2.3 billion$35.00$34.201,873,51212/31/20142.34%11.86%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.661,356,67709/30/20152.21%2.34%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$17.14$16.774,266,16412/31/20142.18%11.04%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$15.54$15.218,13706/30/20152.15%3.11%
+QRE07/24/2014Breitburn Energy Partners L.P. (BBEP)All Stock$3 billion$15.54$15.251,076,89301/31/20151.92%6.81%
+NBTF08/04/2014Peoples Bancorp Inc. (PEBO)Cash Plus Stock$109 million$30.89$30.321,01303/31/20151.88%4.23%
+PENX10/15/2014Ingredion Incorporated (INGR)All Cash$340 million$19.00$18.6672,70312/31/20141.82%9.24%
+KMP08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$91.50$89.913,333,61312/31/20141.77%8.95%
+IRF08/20/2014Infineon Technologies AG (IFNNY)All Cash$2.4 billion$40.00$39.331,127,77001/31/20151.70%6.04%
+PEOP08/05/2014Independent Bank Corp. (INDB)All Stock$130.6 million$20.74$20.4040,17903/31/20151.69%3.80%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$11.21$11.033,024,85512/31/20141.63%8.27%
+FRF08/12/2014Tiptree Financial Inc. (TIPT)All Cash$218 million$10.00$9.8415,37501/31/20151.63%5.76%
+GECR06/23/2014State Bank Financial Corporation (STBZ)Special Conditions$82 million$22.35$22.00N/A03/31/20151.59%3.58%
+SPBC05/05/2014Green Bank (N/A)All Cash$46.2 million$29.55$29.10N/A09/30/20141.55%0.00%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$7.03$6.93129,36912/31/20141.43%7.27%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$22.31$22.0079311/15/20141.41%19.83%
+EPB08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$39.44$38.892,663,28812/31/20141.41%7.16%
+KMR08/10/2014Kinder Morgan, Inc. (KMI)All StockN/A$91.47$90.21841,47812/31/20141.40%7.08%
+TAM09/11/2014Eastman Chemical Co. (EMN)All Cash$2.8 billion$26.00$25.65838,68812/31/20141.36%6.92%
+KOG07/13/2014Whiting Petroleum Corp. (WLL)All Stock$6 billion$10.48$10.346,131,88812/31/20141.34%6.79%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$30.71$30.32373,66812/31/20141.29%6.55%
+PIKE08/04/2014Court Square Capital Partners & J. Eric Pike, the Company�s Chairman and Chief Executive Officer (N/A)All CashN/A$12.00$11.85883,79212/31/20141.27%6.42%
+CNQR09/18/2014SAP SE (SAP)All Cash$8.3 billion$129.00$127.53999,73703/31/20151.15%2.60%
+TWTC06/16/2014Level 3 Communications, Inc. (LVLT)Cash Plus Stock$7.3 billion$38.86$38.43811,87912/31/20141.12%5.69%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.32$8.2382,45810/31/20141.11%36.89%
+ATHL09/29/2014Encana Corporation (ECA)All Cash$7.1 billion$58.50$57.934,107,31912/31/20140.98%4.99%
+PSMI08/22/2014Murata Electronics North America, Inc. (N/A)All Cash$471 million$12.50$12.39228,17801/31/20150.89%3.15%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.44750,83501/31/20150.81%2.86%
+LPDX09/25/2014Laboratory Corp. of America Holdings (LH)All Cash$85.3 million$5.25$5.2169,13012/31/20140.77%3.89%
+IMCB07/23/2014Columbia Banking System Inc. (COLB)Cash Plus Stock$121.5 million$18.27$18.1333012/31/20140.76%3.86%
+MOVE09/30/2014News Corp (N/A)All Cash$950 million$21.00$20.862,900,62512/31/20140.67%3.40%
+BOLT09/03/2014Teledyne Technologies Inc. (TDY)All Cash$171 million$22.00$21.8885,02412/31/20140.55%2.78%
+BAGL09/29/2014JAB Holding Company (N/A)All Cash$374 million$20.25$20.18216,19612/31/20140.35%1.76%
+BNNY09/08/2014General Mills, Inc. (GIS)All Cash$820 million$46.00$45.98239,29112/31/20140.04%0.22%
+COBK09/10/2014Cape Bancorp, Inc. (CBNJ)All Stock$55 million$12.89$12.961,10003/31/2015-0.53%-1.19%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$38.97$39.211,80111/01/2014-0.61%-18.63%
+THRD06/04/2014National Penn Bancshares Inc. (NPBC)All Stock$138 million$39.98$40.4950012/31/2014-1.25%-6.33%
+DRTX10/06/2014Actavis plc (ACT)All Cash$675 million$23.00$23.64272,43801/31/2015-2.71%-9.59%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$76.772,379,25901/31/2015-2.96%-10.48%
+AMBI09/29/2014Daiichi Sankyo Company, Ltd. (N/A)All Cash$410 million$15.00$15.5532,40212/31/2014-3.54%-17.93%
+GFIG07/30/2014CME Group (N/A)All CashN/A$4.55$5.17324,67701/31/2015-11.99%-42.50%
+ATLS10/13/2014Targa Resources Corp. (TRGP)Cash Plus Stock$1.9 billion$31.44$40.04999,12403/31/2015-21.47%-48.37%

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

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