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Merger Arbitrage Mondays – January 12, 2015

  • January 12, 2015

Merger activity decreased last week with one new merger announced and three deals closing. With merger spreads tight in most deals except for the ones that face regulatory risk or other obvious issues, I have been very selective in the deals that I personally invest in over the last year. One of the deals that I have participated in was the acquisition of Safeway (SWY) by Cerberus. With this deal likely to close in the next few days or weeks, I came across an interesting article about the deal on Seeking Alpha titled  “A Not-So-Obvious Way To Make Money With Safeway” that is well worth reading.

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 20157
Total Number of Pending Deals
Cash Deals30
Stock Deals21
Stock & Cash Deals17
Special Conditions9
Total Number of Pending Deals77
Total Deal Size$402.23 billion

New Deals:

  1. The acquisition of Uranerz Energy (URZ) by Energy Fuels (UUUU) in an all stock deal. Under the terms of the agreement, shareholders of Uranerz Energy will receive 0.255 commin shares of Energy Fuels.

Closed Deals:

  1. The acquisition of World Energy Solutions (XWES) by EnerNOC (ENOC) on January 5, 2015. It took 62 days for this deal to be completed.
  2. The acquisition of Franklin Financial Corporation (FRNK) by Towne Bank (TOWN) on January 5, 2015. It took 174 days for this deal to be completed.
  3. The acquisition of Chiquita Brands International (CQB) by Cutrale-Safra group on January 6, 2015. It took 71 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

UPI12/22/2014Vision-Sciences Inc. (VSCI)$2.18$1.7206/30/201526.74%57.74%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.5012/31/201418.67%-567.78%
BHI11/16/2014Halliburton Company (HAL)$63.58$56.4712/31/201512.58%13.01%
DTV05/18/2014AT&T, Inc. (T)$95.00$85.3805/31/201511.27%29.59%
TWC02/13/2014Comcast Corporation (CMCSA)$161.83$146.3606/30/201510.57%22.83%
URZ01/05/2015Energy Fuels Inc. (UUUU)$1.37$1.2406/30/201510.23%22.09%
LO07/15/2014Reynolds American Inc. (RAI)$69.40$63.6306/30/20159.07%19.59%
APL10/13/2014Targa Resources Partners LP (NGLS)$28.63$26.3503/31/20158.63%40.40%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.9406/30/20157.73%16.70%
LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)$18.70$17.6506/30/20155.95%12.85%

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

+UPI12/22/2014Vision-Sciences Inc. (VSCI)All StockN/A$2.18$1.72407,78106/30/201526.74%57.74%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.5018,20612/31/201418.67%0.00%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$63.58$56.472,771,13312/31/201512.58%13.01%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$85.382,060,45905/31/201511.27%29.59%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$161.83$146.361,917,52506/30/201510.57%22.83%
+URZ01/05/2015Energy Fuels Inc. (UUUU)All Stock$150 million$1.37$1.24261,49306/30/201510.23%22.09%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$69.40$63.632,425,82106/30/20159.07%19.59%
+APL10/13/2014Targa Resources Partners LP (NGLS)Cash Plus Stock$5.8 billion$28.63$26.35536,22303/31/20158.63%40.40%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$16.941,415,76106/30/20157.73%16.70%
+LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)Special Conditions$183.3 million$18.70$17.659,36906/30/20155.95%12.85%
+AGN11/16/2014Actavis plc (ACT)Cash Plus StockN/A$228.17$215.403,773,69406/30/20155.93%12.81%
+TLM12/15/2014Repsol S.A. (N/A)All Cash$13 billion$8.00$7.6121,544,15806/30/20155.12%11.07%
+WPZ10/27/2014Access Midstream Partners, L.P. (ACMP)All Stock$50 billion$44.36$42.36907,49401/31/20154.72%90.64%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$9.99$9.563,970,26104/30/20154.47%15.09%
+BTUI10/22/2014Amtech Systems Inc. (ASYS)All StockN/A$3.14$3.013,45403/31/20154.42%20.66%
+VYFC11/17/2014BNC Bancorp (BNCN)Special Conditions$101.3 million$20.50$19.742,67106/30/20153.85%8.32%
+PTP11/24/2014RenaissanceRe Holdings Ltd. (RNR)Special Conditions$1.9 billion$76.00$73.48223,66106/30/20153.43%7.41%
+MIG12/30/2014Fosun International Limited (N/A)All Cash$433 million$8.65$8.37563,56612/31/20153.35%3.46%
+SIBC12/30/2014First NBC Bank Holding Company (NBCB)All Cash$49 million$21.25$20.656,55906/30/20152.91%6.28%
+CODE12/01/2014Cypress Semiconductor Corporation (CY)All Stock$4 billion$36.95$35.911,442,85306/30/20152.91%6.27%
+SUSQ11/12/2014BB&T Corporation (BBT)Cash Plus Stock$2.5 billion$13.37$13.011,059,49406/30/20152.75%5.94%
+DRIV10/23/2014Siris Capital Group, LLC (N/A)All Cash$840 million$26.00$25.31577,80903/31/20152.73%12.76%
+HVB11/05/2014Sterling Bancorp. (STL)All Stock$539 million$25.96$25.2715,79406/30/20152.72%5.88%
+ESBF10/29/2014WesBanco Inc. (WSBC)Cash Plus Stock$324.4 million$18.01$17.5421,41206/30/20152.71%5.85%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$102.84518,08106/30/20152.68%5.80%
+PENX10/15/2014Ingredion Incorporated (INGR)All Cash$340 million$19.00$18.51143,32303/31/20152.65%12.39%
+SWY03/06/2014AB Acquisition LLC (N/A)Special ConditionsN/A$36.15$35.241,009,92212/31/20142.58%0.00%
+HBOS12/10/2014Renasant Corp. (RNST)All Stock$258 million$26.07$25.4211,08309/30/20152.57%3.60%
+PETM12/14/2014a consortium led by BC Partners (N/A)All Cash$8.7 billion$83.00$81.071,283,79306/30/20152.38%5.14%
+APAGF10/03/2014Pluspetrol Resources Corporation (N/A)All Cash$427 million$14.50$14.1827,75312/31/20142.26%0.00%
+CMSB09/25/2014Putnam County Savings Bank (N/A)All Cash$25.4 million$13.25$12.96N/A06/30/20152.24%4.83%
+TRLA07/28/2014Zillow, Inc. (Z)All Stock$3.5 billion$45.61$44.65407,80403/31/20152.14%10.04%
+RVBD12/15/2014Thoma Bravo, LLC and Teachers� Private Capital (N/A)All Cash$3.6 billion$21.00$20.565,570,56606/30/20152.14%4.62%
+PEOP08/05/2014Independent Bank Corp. (INDB)All Stock$130.6 million$22.10$21.682,05903/31/20151.95%9.13%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$81.43530,81006/30/20151.93%4.16%
+CIMT11/24/20143D Systems Corporation (DDD)All Cash$97 million$8.97$8.8489,79203/31/20151.47%6.88%
+AVIV10/31/2014Omega Healthcare Investors Inc. (OHI)All Stock$3 billion$37.72$37.20204,83503/31/20151.40%6.53%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$54.63281,26112/31/20151.35%1.40%
+HBNK11/04/2014Berkshire Hills Bancorp Inc. (BHLB)All Stock$109 million$20.43$20.162,83605/15/20151.33%3.95%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$79.06$78.03241,10606/30/20151.32%2.86%
+CBST12/08/2014Merck & Co. Inc. (MRK)All Cash$9.5 billion$102.00$100.751,507,70203/31/20151.24%5.81%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$46.69$46.136,38403/31/20151.22%5.72%
+NBTF08/04/2014Peoples Bancorp Inc. (PEBO)Cash Plus Stock$109 million$30.85$30.5120103/31/20151.12%5.24%
+COV06/15/2014Medtronic, Inc. (MDT)Cash Plus Stock$42.9 billion$106.32$105.143,990,87901/31/20151.12%21.49%
+SMPL09/29/2014HomeStreet, Inc. (HMST)All StockN/A$17.46$17.2881,65903/31/20151.04%4.87%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$16.65$16.5011,44306/30/20150.89%1.91%
+PRLS12/22/2014Mobius Acquisition, LLC (N/A)All CashN/A$7.00$6.941,79703/31/20150.86%4.05%
+CVD11/03/2014Laboratory Corp. of America Holdings (LH)Cash Plus Stock$5.6 billion$106.92$106.011,137,56103/31/20150.86%4.01%
+OILT11/12/2014Enterprise Products Partners L.P. (EPD)All StockN/A$44.62$44.2841,90003/31/20150.76%3.55%
+VOLC12/17/2014Koninklijke Philips N.V (PHG)All Cash$1.2 billion$18.00$17.87918,52503/31/20150.73%3.40%
+CFN10/05/2014Becton, Dickinson and Company (BDX)Cash Plus Stock$12.2 billion$60.24$59.841,452,72606/30/20150.66%1.44%
+ESYS11/04/2014Lindsay Corporation (LNN)All Cash$70.5 million$17.50$17.398,51201/31/20150.63%12.15%
+SAPE11/03/2014Publicis Groupe (N/A)All Cash$3.7 billion$25.00$24.86801,72803/31/20150.56%2.64%
+GFIG07/30/2014BGC Partners (BGCP)All CashN/A$5.45$5.42180,79303/31/20150.55%2.59%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.14602,18809/30/20150.41%0.57%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.74483,36501/31/20150.37%7.16%
+BIRT12/05/2014OpenText (N/A)All Cash$330 million$6.60$6.58583,59903/31/20150.30%1.42%
+MFI12/15/2014an affiliate of funds managed by affiliates of Fortress Investment Group LLC (FIG)All CashN/A$10.20$10.17534,29003/31/20150.29%1.38%
+GRT09/16/2014Washington Prime Group Inc. (WPG)Cash Plus Stock$4.3 billion$13.92$13.882,053,31701/15/20150.29%35.53%
+AVNR12/02/2014Otsuka Pharmaceutical Co., Ltd. (N/A)All Cash$3.5 billion$17.00$16.962,111,12703/31/20150.24%1.10%
+ROC07/15/2014Albemarle Corporation (ALB)Cash Plus Stock$6.2 billion$79.00$78.877,094,41103/31/20150.16%0.76%
+HCT06/02/2014Ventas, Inc. (VTR)All Stock$2.6 billion$12.84$12.823,583,38101/16/20150.15%13.47%
+AMRE10/31/2014Edens Investment Trust (N/A)All CashN/A$26.55$26.52221,89703/31/20150.11%0.53%
+PTRY12/18/2014Alimentation Couche-Tard Inc. (N/A)All Cash$1.7 billion$36.75$36.71430,04306/30/20150.11%0.24%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$33.48520,51612/31/20150.06%0.06%
+IRF08/20/2014Infineon Technologies AG (IFNNY)All Cash$2.4 billion$40.00$39.981,470,44901/31/20150.05%0.96%
+GTIV10/09/2014Kindred Healthcare Inc. (KND)Cash Plus Stock$1.8 billion$19.27$19.26142,38803/31/20150.04%0.18%
+CHYR11/17/2014Vector Capital (N/A)All CashN/A$2.82$2.8233,73803/31/20150.00%0.00%
+PZG12/17/2014Coeur Mining, Inc. (CDE)All Stock$146 million$1.18$1.181,181,75306/30/2015-0.23%-0.49%
+WMGI10/27/2014Tornier N.V. (TRNX)All Stock$1.72 billion$26.39$26.801,144,77906/30/2015-1.53%-3.30%
+COBK09/10/2014Cape Bancorp, Inc. (CBNJ)All Stock$55 million$13.03$13.358,10003/31/2015-2.38%-11.12%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$77.992,748,94401/31/2015-4.47%-85.97%
+RNA11/24/2014BioMarin Pharmaceutical Inc. (BMRN)All Cash$680 million$17.75$18.76174,14703/31/2015-5.38%-25.19%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$9.18$9.7897,43903/31/2015-6.10%-28.56%
+DWSN10/09/2014TGC Industries Inc. (TGE)All StockN/A$11.25$12.0425,28403/31/2015-6.59%-30.84%
+ATLS10/13/2014Targa Resources Corp. (TRGP)Cash Plus Stock$1.9 billion$25.91$28.39724,05303/31/2015-8.73%-40.86%
+AUXL10/09/2014Endo International plc (ENDP)Special Conditions$2.6 billion$33.25$36.511,122,04006/30/2015-8.93%-19.28%

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

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