Merger Arbitrage Mondays – February 2, 2015

  • February 1, 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:

Total Number of Deals Closed in 201519
Total Number of Pending Deals
Cash Deals28
Stock Deals21
Stock & Cash Deals16
Special Conditions7
Total Number of Pending Deals72
Total Deal Size$467.19 billion

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.
  4. The acquisition of Silicon Image (SIMG) by Lattice Semiconductor Corporation (LSCC) for $600 million or $7.30 per share in cash.

Deal Updates:

  1. On January 30, 2015, GFI Group (GFIG) shareholders rejected the proposed takeover by CME Group (CME), forcing the companies to terminate the merger agreement.

Closed Deals:

  1. The acquisition of Covidien (COV) by Medtronic (MDT) on January 26, 2015. It took 225 days for this deal to be completed.
  2. The acquisition of Apco Oil & Gas International (APAGF) by Pluspetrol Resources Corporation on January 29, 2015. It took 118 days for this deal to be completed.
  3. The acquisition of Auxilium Pharmaceuticals (AUXL) by Endo International (ENDP) on January 29, 2015. It took 112 days for this deal to be completed.
  4. The acquisition of Safeway (SWY) by AB Acquisition LLC on January 31, 2015. It took 330 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)$1.71$1.2306/30/201538.83%95.75%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.5412/31/201415.58%-172.37%
TWC02/13/2014Comcast Corporation (CMCSA)$152.81$136.1306/30/201512.25%30.21%
DTV05/18/2014AT&T, Inc. (T)$95.00$85.2805/31/201511.40%35.26%
BHI11/16/2014Halliburton Company (HAL)$63.79$57.9912/31/201510.00%10.99%
IGT07/16/2014GTECH S.p.A. (GTKYY)$18.25$16.9206/30/20157.86%19.39%
LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)$18.70$17.4406/30/20157.22%17.82%
LO07/15/2014Reynolds American Inc. (RAI)$70.27$65.6106/30/20157.10%17.50%
TLM12/15/2014Repsol S.A. (N/A)$8.00$7.5206/30/20156.38%15.74%
WPZ10/27/2014Access Midstream Partners, L.P. (ACMP)$44.85$42.4101/31/20155.76%-1051.18%

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$1.82$1.3573,27406/30/201534.56%87.60%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.55N/A12/31/201414.84%0.00%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$163.79$147.682,365,56206/30/201510.91%27.65%
+BTUI10/22/2014Amtech Systems Inc. (ASYS)All StockN/A$2.88$2.62N/A03/31/20159.91%68.24%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$67.55$62.286,097,37612/31/20158.46%9.42%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$87.722,606,54605/31/20158.30%26.57%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$17.061,646,38806/30/20156.98%17.68%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$70.70$66.521,952,56006/30/20156.29%15.94%
+LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)Special Conditions$183.3 million$18.70$17.7017,32306/30/20155.65%14.32%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.04$9.511,732,23204/30/20155.55%24.43%
+TLM12/15/2014Repsol S.A. (N/A)All Cash$13 billion$8.00$7.608,336,18106/30/20155.26%13.34%
+VYFC11/17/2014BNC Bancorp (BNCN)Special Conditions$101.3 million$20.50$19.501,42906/30/20155.13%13.00%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$92.66$88.731,650,40212/31/20154.42%4.92%
+URZ01/05/2015Energy Fuels Inc. (UUUU)All Stock$150 million$1.27$1.22474,17806/30/20153.88%9.84%
+MIG12/30/2014Fosun International Limited (N/A)All Cash$433 million$8.65$8.34412,62012/31/20153.72%4.14%
+HBOS12/10/2014Renasant Corp. (RNST)All Stock$258 million$25.50$24.6060,82809/30/20153.66%5.66%
+APL10/13/2014Targa Resources Partners LP (NGLS)Cash Plus Stock$5.8 billion$28.32$27.431,830,75103/31/20153.25%22.37%
+PEOP08/05/2014Independent Bank Corp. (INDB)All Stock$130.6 million$22.16$21.58512,58103/31/20152.66%18.29%
+AGN11/16/2014Actavis plc (ACT)Cash Plus StockN/A$230.38$224.695,894,65606/30/20152.53%6.42%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$103.17831,95606/30/20152.36%5.97%
+SUSQ11/12/2014BB&T Corporation (BBT)Cash Plus Stock$2.5 billion$13.43$13.15719,26706/30/20152.16%5.47%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$81.37700,03406/30/20152.00%5.08%
+NBTF08/04/2014Peoples Bancorp Inc. (PEBO)Cash Plus Stock$109 million$29.98$29.401,00003/31/20151.96%13.49%
+CIMT11/24/20143D Systems Corporation (DDD)All Cash$97 million$8.97$8.8028,59003/31/20151.93%13.30%
+WMGI10/27/2014Tornier N.V. (TRNX)All Stock$1.72 billion$25.00$24.55694,25406/30/20151.83%4.64%
+SIBC12/30/2014First NBC Bank Holding Company (NBCB)All Cash$49 million$21.25$20.877,04806/30/20151.82%4.62%
+CODE12/01/2014Cypress Semiconductor Corporation (CY)All Stock$4 billion$34.94$34.351,314,02806/30/20151.71%4.34%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$137.80593,26806/30/20151.60%4.05%
+RGP01/26/2015Energy Transfer Partners, L.P. (ETP)Cash Plus Stock$18 billion$25.03$24.651,488,61006/30/20151.54%3.90%
+GTIV10/09/2014Kindred Healthcare Inc. (KND)Cash Plus Stock$1.8 billion$19.47$19.19N/A03/31/20151.47%10.15%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$54.64456,53312/31/20151.34%1.49%
+HBNK11/04/2014Berkshire Hills Bancorp Inc. (BHLB)All Stock$109 million$20.94$20.6871705/15/20151.25%4.66%
+PZG12/17/2014Coeur Mining, Inc. (CDE)All Stock$146 million$1.46$1.44839,24906/30/20151.22%3.09%
+HVB11/05/2014Sterling Bancorp. (STL)All Stock$539 million$25.73$25.4341,48306/30/20151.17%2.97%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$46.96$46.458,37403/31/20151.09%7.52%
+CHYR11/17/2014Vector Capital (N/A)All CashN/A$2.82$2.7918,89003/31/20151.08%7.41%
+RVBD12/15/2014Thoma Bravo, LLC and Teachers� Private Capital (N/A)All Cash$3.6 billion$21.00$20.803,630,94306/30/20150.96%2.44%
+ESBF10/29/2014WesBanco Inc. (WSBC)Cash Plus Stock$324.4 million$17.83$17.6855,57006/30/20150.87%2.21%
+PENX10/15/2014Ingredion Incorporated (INGR)All Cash$340 million$19.00$18.8416,94103/31/20150.85%5.85%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$16.81$16.688,84206/30/20150.77%1.95%
+CMSB09/25/2014Putnam County Savings Bank (N/A)All Cash$25.4 million$13.25$13.151,47006/30/20150.76%1.93%
+TRLA07/28/2014Zillow, Inc. (Z)All Stock$3.5 billion$45.79$45.45337,76303/31/20150.75%5.15%
+DRIV10/23/2014Siris Capital Group, LLC (N/A)All Cash$840 million$26.00$25.84288,68103/31/20150.62%4.26%
+CFN10/05/2014Becton, Dickinson and Company (BDX)Cash Plus Stock$12.2 billion$60.29$59.951,609,34506/30/20150.57%1.43%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$81.77$81.32270,34906/30/20150.55%1.40%
+PETM12/14/2014a consortium led by BC Partners (N/A)All Cash$8.7 billion$83.00$82.552,583,84106/30/20150.55%1.38%
+PRLS12/22/2014Mobius Acquisition, LLC (N/A)All CashN/A$7.00$6.9655,54203/31/20150.50%3.46%
+SIMG01/27/2015Lattice Semiconductor Corporation (LSCC)All Cash$600 million$7.30$7.272,413,54803/31/20150.41%2.84%
+OILT11/12/2014Enterprise Products Partners L.P. (EPD)All StockN/A$46.38$46.2060,04703/31/20150.40%2.74%
+CVD11/03/2014Laboratory Corp. of America Holdings (LH)Cash Plus Stock$5.6 billion$106.92$106.53706,71003/31/20150.37%2.52%
+NPSP01/11/2015Shire plc (SHPG)All Cash$5.2 billion$46.00$45.883,511,42003/31/20150.26%1.80%
+SMPL09/29/2014HomeStreet, Inc. (HMST)All StockN/A$17.61$17.582,56703/31/20150.17%1.18%
+VOLC12/17/2014Koninklijke Philips N.V (PHG)All Cash$1.2 billion$18.00$17.97852,41603/31/20150.17%1.15%
+MWIV01/12/2015AmerisourceBergen Corporation (ABC)All Cash$2.5 billion$190.00$189.69162,92703/31/20150.16%1.13%
+PTRY12/18/2014Alimentation Couche-Tard Inc. (N/A)All Cash$1.7 billion$36.75$36.72122,16606/30/20150.08%0.21%
+SAPE11/03/2014Publicis Groupe (N/A)All Cash$3.7 billion$25.00$24.987,409,40103/31/20150.08%0.55%
+PL06/03/2014Dai-ichi Life Insurance Company (N/A)All Cash$5.7 billion$70.00$69.95N/A01/31/20150.07%0.00%
+MWV01/26/2015Rock-Tenn Company (RKT)All Stock$16 billion$50.90$50.90960,83806/30/20150.01%0.01%
+AVIV10/31/2014Omega Healthcare Investors Inc. (OHI)All Stock$3 billion$38.80$38.84513,69703/31/2015-0.11%-0.73%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.281,065,95509/30/2015-0.11%-0.17%
+AMRE10/31/2014Edens Investment Trust (N/A)All CashN/A$26.55$26.5878,39703/31/2015-0.11%-0.78%
+PTP11/24/2014RenaissanceRe Holdings Ltd. (RNR)Special Conditions$1.9 billion$76.00$76.29145,21606/30/2015-0.38%-0.96%
+DWSN10/09/2014TGC Industries Inc. (TGE)All StockN/A$11.40$11.5718,98103/31/2015-1.43%-9.83%
+MFI12/15/2014an affiliate of funds managed by affiliates of Fortress Investment Group LLC (FIG)All CashN/A$10.20$10.43N/A03/31/2015-2.21%-15.19%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$34.49275,40012/31/2015-2.87%-3.19%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$77.561,007,42903/31/2015-3.95%-27.17%
+RNA11/24/2014BioMarin Pharmaceutical Inc. (BMRN)All Cash$680 million$17.75$18.7149,43803/31/2015-5.13%-35.34%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$7.64$8.1169,46403/31/2015-5.76%-39.69%
+COBK09/10/2014Cape Bancorp, Inc. (CBNJ)All Stock$55 million$12.37$13.403,38303/31/2015-7.69%-52.98%
+CRRC01/16/2015Quad/Graphics, Inc. (QUAD)All Cash$260 million$20.50$22.75390,77006/30/2015-9.89%-25.07%
+ATLS10/13/2014Targa Resources Corp. (TRGP)Cash Plus Stock$1.9 billion$26.60$30.392,289,94603/31/2015-12.46%-85.80%
+WPZ10/27/2014Access Midstream Partners, L.P. (ACMP)All Stock$50 billion$41.30$47.651,295,25201/31/2015-13.33%810.79%

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