Merger Arbitrage Mondays – February 2, 2015

Merger activity decreased last week with four new mergers announced and four 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 Regency Energy Partners (RGP) by Energy Transfer Partners (ETP) for $18 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Regency Energy Partners will receive 0.4066 ETP common units and a cash payment of $0.32 for each common unit of Regency.
2. PartnerRe (PRE) and AXIS Capital Holdings (AXS) combine in a merger of equals valued at $11 billion. Under the terms of the transaction agreement, PartnerRe shareholders will receive 2.18 shares of the combined company’s common shares for each share of PartnerRe common shares they own and AXIS Capital shareholders will receive one share of the combined company’s common shares for each share of AXIS Capital common shares they own.  Upon completion of the transaction, shareholders of PartnerRe and AXIS Capital will own approximately 51.6 percent and 48.4 percent of the combined company, respectively.
3. Rock-Tenn Company (RKT) and MeadWestvaco (MWV) have entered into a definitive combination agreement to create a leading global provider of consumer and corrugated packaging in a transaction with a combined equity value of $16 billion. Under the terms of the agreement, MWV stockholders will receive 0.78 shares of the new company for each share of MWV held. RockTenn shareholders will be entitled to elect to receive either (a) 1.00 shares of the new company or (b) cash in an amount equal to the volume weighted average price of RockTenn common stock during a five-day period ending three trading days prior to closing for each share of RockTenn held. Since the exchange ratio for 93% of RKT shareholders will be 1:1 in the new company, we are entering this deal as shareholders of MWV receiving 0.78 shares of RKT instead of 0.78 shares of the new company.

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