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Merger Arbitrage Mondays – November 3, 2014

  • November 2, 2014

Merger Activity increased last week with five new mergers announced. None of the pending deals closed last week.

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 2014132
Total Number of Deals Not Completed in 20142
Total Number of Pending Deals
Cash Deals31
Stock Deals21
Stock & Cash Deals21
Special Conditions8
Total Number of Pending Deals81
Total Deal Size$639.99 billion

New Deals:

  1. The acquisition of Wright Medical Group (WMGI) by Tornier N.V. (TRNX) for $1.72 billion. Under the terms of the agreement, shareholders of Wright Medical Group will receive 1.0309 ordinary shares of Tornier in exchange for each outstanding share of Wright common stock.
  2. The acquisition of Chiquita Brands International (CQB) by Cutrale-Safra group for $1.3 billion or $14.50 per share in cash.
  3. The acquisition of Williams Partners (WPZ) by Access Midstream Partners (ACMP) in an all stock deal. Under the terms of the merger agreement, WPZ will merge with a subsidiary of ACMP in a unit-for-unit exchange at a ratio of 0.86672 ACMP common units per WPZ common unit held by the WPZ public unit holders. Prior to the completion of the merger, ACMP will effect a subdivision of its common units and each public unitholder of ACMP will receive 0.06152 additional ACMP common units for each ACMP common unit they hold. In the aggregate, the public unit holders of ACMP will receive approximately $3.74 per public ACMP common unit, based on the closing price of ACMP as of October 24, 2014.
  4. The acquisition of ESB Financial (ESBF) by WesBanco (WSBC) for $324.4 million in a cash plus stock deal. Under the terms of the agreement, shareholders of ESB Financial will receive 0.502 shares of WesBanco common stock and cash in the amount of $1.76 per share for each share of ESB common stock.
  5. The acquisition of Aviv (AVIV) by Omega Healthcare Investors (OHI) for $3 billion in an all stock deal. Under the terms of the agreement, Aviv shareholders will receive a fixed exchange ratio of 0.90 Omega shares for each share of Aviv common stock they own.

Deal Updates:

  1. On October 31, 2014, Compuware (CPWR) announced that it has completed the spin-off of Covisint (COVS).

Top 10 deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.5912/31/201411.95%75.20%
LO07/15/2014Reynolds American Inc. (RAI)$68.80$61.5006/30/201511.87%18.13%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.3906/30/201511.35%17.33%
FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)$4.06$3.7010/30/20149.79%-893.14%
DTV05/18/2014AT&T, Inc. (T)$95.00$86.7905/31/20159.46%16.52%
COV06/15/2014Medtronic, Inc. (MDT)$100.35$92.4401/31/20158.56%35.10%
LIN03/22/2014Media General, Inc. (MEG)$25.97$23.9303/31/20158.52%21.02%
TWC02/13/2014Comcast Corporation (CMCSA)$159.13$147.2112/31/20148.10%50.96%
CPWR09/02/2014Thoma Bravo, LLC (N/A)$10.92$10.1501/31/20157.59%31.11%
HCBK08/27/2012M&T Bank Corporation (MTB)$10.27$9.6512/31/20146.39%40.22%

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

+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.594,95612/31/201411.95%75.20%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$68.80$61.502,507,23206/30/201511.87%18.13%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$16.392,330,10406/30/201511.35%17.33%
+FFKY04/22/2014Community Bank Shares of Indiana Inc. (CBIN)All Stock$17.9 million$4.06$3.701,89210/30/20149.79%0.00%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$86.793,240,34805/31/20159.46%16.52%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$100.35$92.443,662,07901/31/20158.56%35.10%
+LIN03/22/2014Media General, Inc. (MEG)Special Conditions$2.6 billion$25.97$23.9349,41403/31/20158.52%21.02%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$159.13$147.212,999,31712/31/20148.10%50.96%
+CPWR09/02/2014Thoma Bravo, LLC (N/A)All Cash$2.5 billion$10.92$10.151,793,02101/31/20157.59%31.11%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.27$9.655,959,38112/31/20146.39%40.22%
+SMPL09/29/2014HomeStreet, Inc. (HMST)All StockN/A$17.42$16.578,47403/31/20155.13%12.65%
+WPZ10/27/2014Access Midstream Partners, L.P. (ACMP)All Stock$50 billion$53.99$51.551,671,49701/31/20154.73%19.40%
+MGAM09/08/2014Global Cash Access Holdings, Inc. (GCA)All Cash$1.2 billion$36.50$34.90292,92803/31/20154.58%11.31%
+PEOP08/05/2014Independent Bank Corp. (INDB)All Stock$130.6 million$22.53$21.586,79403/31/20154.42%10.90%
+OABC04/29/2014Southside Bancshares Inc. (SBSI)Cash Plus Stock$307 million$28.10$26.9667,60112/31/20144.22%26.57%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$101.35942,97806/30/20154.19%6.40%
+BTUI10/22/2014Amtech Systems Inc. (ASYS)All StockN/A$3.47$3.3322,68003/31/20154.07%10.03%
+QRE07/24/2014Breitburn Energy Partners L.P. (BBEP)All Stock$3 billion$17.04$16.40336,80201/31/20153.91%16.03%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$34.861,820,86112/31/20143.70%23.29%
+BYI08/01/2014Scientific Games Corporation (SGMS)All Cash$5.1 billion$83.30$80.401,233,97401/31/20153.61%14.79%
+TRLA07/28/2014Zillow, Inc. (Z)All Stock$3.5 billion$48.28$46.65717,48003/31/20153.49%8.60%
+AUXL10/09/2014Endo International plc (ENDP)Special Conditions$2.6 billion$33.25$32.171,402,62806/30/20153.36%5.13%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$135.91889,86906/30/20153.01%4.60%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$53.761,016,00312/31/20152.99%2.58%
+CFN10/05/2014Becton, Dickinson and Company (BDX)Cash Plus Stock$12.2 billion$59.00$57.373,368,27406/30/20152.84%4.34%
+CMSB09/25/2014Putnam County Savings Bank (N/A)All Cash$25.4 million$13.25$12.901,47706/30/20152.71%4.14%
+TIBX09/29/2014Vista Equity Partners (N/A)All Cash$4.3 billion$24.00$23.371,569,30412/31/20142.70%16.96%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$74.60$72.68414,67506/30/20152.64%4.03%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$11.56$11.305,283,86312/31/20142.34%14.73%
+ROC07/15/2014Albemarle Corporation (ALB)Cash Plus Stock$6.2 billion$78.69$76.911,422,49203/31/20152.31%5.71%
+MONT06/11/2014Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A)All Cash$693 million$22.60$22.10185,18811/06/20142.26%275.26%
+FRNK07/15/2014Towne Bank (TOWN)All Stock$275 million$21.22$20.7619,54112/31/20142.24%14.07%
+ESBF10/29/2014WesBanco Inc. (WSBC)Cash Plus Stock$324.4 million$19.06$18.66260,54106/30/20152.14%3.26%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$16.21$15.8710,62006/30/20152.13%3.26%
+KMP08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$95.64$93.802,927,85612/31/20141.96%12.36%
+GTIV10/09/2014Kindred Healthcare Inc. (KND)Cash Plus Stock$1.8 billion$20.09$19.71401,11303/31/20151.93%4.75%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$47.76$46.9125,64003/31/20151.81%4.45%
+DRIV10/23/2014Siris Capital Group, LLC (N/A)All Cash$840 million$26.00$25.57778,42303/31/20151.68%4.15%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$81.701,004,13606/30/20151.59%2.43%
+EPB08/10/2014Kinder Morgan, Inc. (KMI)Cash Plus StockN/A$41.23$40.651,833,40812/31/20141.42%8.91%
+GRT09/16/2014Washington Prime Group Inc. (WPG)Cash Plus Stock$4.3 billion$13.91$13.732,951,04403/31/20151.29%3.17%
+FRF08/12/2014Tiptree Financial Inc. (TIPT)All Cash$218 million$10.00$9.8819,34001/31/20151.21%4.98%
+APAGF10/03/2014Pluspetrol Resources Corporation (N/A)All Cash$427 million$14.50$14.3333,46912/31/20141.19%7.47%
+KMR08/10/2014Kinder Morgan, Inc. (KMI)All StockN/A$96.17$95.14755,60212/31/20141.08%6.78%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$22.31$22.0838011/15/20141.05%31.79%
+NBTF08/04/2014Peoples Bancorp Inc. (PEBO)Cash Plus Stock$109 million$30.72$30.422,47503/31/20150.99%2.44%
+PENX10/15/2014Ingredion Incorporated (INGR)All Cash$340 million$19.00$18.8543,22212/31/20140.80%5.01%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$21.79$21.636,355,85812/31/20140.75%4.71%
+APL10/13/2014Targa Resources Partners LP (NGLS)Cash Plus Stock$5.8 billion$36.97$36.70433,06803/31/20150.73%1.80%
+IMCB07/23/2014Columbia Banking System Inc. (COLB)Cash Plus Stock$121.5 million$20.14$20.002,68912/31/20140.72%4.54%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$7.44$7.39284,06012/31/20140.66%4.15%
+PSMI08/22/2014Murata Electronics North America, Inc. (N/A)All Cash$471 million$12.50$12.42144,05701/31/20150.64%2.64%
+OVRL05/15/2014Sphere 3D Corporation (ANY)All Stock$81.13 million$2.63$2.6128,30912/31/20140.59%3.71%
+IRF08/20/2014Infineon Technologies AG (IFNNY)All Cash$2.4 billion$40.00$39.771,484,70901/31/20150.58%2.37%
+LPDX09/25/2014Laboratory Corp. of America Holdings (LH)All Cash$85.3 million$5.25$5.2228,10912/31/20140.57%3.62%
+CNQR09/18/2014SAP SE (SAP)All Cash$8.3 billion$129.00$128.32584,43803/31/20150.53%1.31%
+PIKE08/04/2014Court Square Capital Partners & J. Eric Pike, the Company�s Chairman and Chief Executive Officer (N/A)All CashN/A$12.00$11.94197,78812/31/20140.50%3.16%
+CQB10/27/2014Cutrale-Safra group (N/A)All Cash$1.3 billion$14.50$14.431,607,65501/31/20150.49%1.99%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.68683,45801/31/20150.46%1.88%
+KOG07/13/2014Whiting Petroleum Corp. (WLL)All Stock$6 billion$10.84$10.793,040,93612/31/20140.46%2.89%
+TAM09/11/2014Eastman Chemical Co. (EMN)All Cash$2.8 billion$26.00$25.89271,49412/31/20140.42%2.67%
+FUBC05/08/2014Valley National Bancorp (VLY)All Stock$312 million$8.88$8.85413,31303/31/20150.36%0.90%
+ATHL09/29/2014Encana Corporation (ECA)All Cash$7.1 billion$58.50$58.301,396,69412/31/20140.34%2.16%
+BOLT09/03/2014Teledyne Technologies Inc. (TDY)All Cash$171 million$22.00$21.9390,29312/31/20140.32%2.01%
+MOVE09/30/2014News Corp (N/A)All Cash$950 million$21.00$20.951,776,12412/31/20140.24%1.50%
+LSBI06/04/2014Old National Bancorp. (ONB)Cash Plus Stock$66.7 million$43.64$43.582,14311/01/20140.15%0.00%
+TWTC06/16/2014Level 3 Communications, Inc. (LVLT)Cash Plus Stock$7.3 billion$42.84$42.781,836,30412/31/20140.13%0.84%
+BAGL09/29/2014JAB Holding Company (N/A)All Cash$374 million$20.25$20.25116,59812/31/20140.00%0.00%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.341,585,75009/30/2015-0.33%-0.36%
+CNVR09/11/2014Alliance Data Systems Corporation (ADS)Special Conditions$2.3 billion$35.00$35.25799,60812/31/2014-0.71%-4.46%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$30.54$31.04310,88012/31/2014-1.61%-10.12%
+DWSN10/09/2014TGC Industries Inc. (TGE)All StockN/A$16.68$16.9695,69903/31/2015-1.62%-4.00%
+GECR06/23/2014State Bank Financial Corporation (STBZ)Special Conditions$82 million$22.35$23.0070003/31/2015-2.83%-6.97%
+COBK09/10/2014Cape Bancorp, Inc. (CBNJ)All Stock$55 million$12.58$12.951,66403/31/2015-2.85%-7.03%
+AMBI09/29/2014Daiichi Sankyo Company, Ltd. (N/A)All Cash$410 million$15.00$15.62351,71412/31/2014-3.97%-24.98%
+DRTX10/06/2014Actavis plc (ACT)All Cash$675 million$23.00$24.03275,50101/31/2015-4.29%-17.58%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$78.29682,07901/31/2015-4.84%-19.85%
+WMGI10/27/2014Tornier N.V. (TRNX)All Stock$1.72 billion$28.81$31.621,887,13906/30/2015-8.88%-13.55%
+ATLS10/13/2014Targa Resources Corp. (TRGP)Cash Plus Stock$1.9 billion$32.39$37.531,054,81903/31/2015-13.70%-33.78%
+GFIG07/30/2014CME Group (N/A)All CashN/A$4.55$5.50648,32901/31/2015-17.27%-70.84%
+AVIV10/31/2014Omega Healthcare Investors Inc. (OHI)All Stock$3 billion$30.36$33.97800,26903/31/20151.84%4.54%

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

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