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Merger Arbitrage Mondays – March 2, 2015

  • March 1, 2015

Merger activity increased last week with seven new deals 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 201539
Total Number of Deals Not Completed in 20151
Total Number of Pending Deals
Cash Deals26
Stock Deals17
Stock & Cash Deals18
Special Conditions7
Total Number of Pending Deals68
Total Deal Size$538.26 billion

New Deals:

  1. The acquisition of Home Loan Servicing Solutions (HLSS) by New Residential Investment (NRZ) for $1.3 billion or $18.25 per share in cash.
  2. The acquisition of Polypore International (PPO) by Asahi Kasei Corporation for $3.2 billion or $60.50 per share in cash. As an integrated step in this transaction, immediately prior to Asahi Kasei’s acquisition of Polypore, 3M Company (MMM) will acquire the assets of Polypore’s Separations Media segment for approximately $1.0 billion and Asahi Kasei will receive the cash proceeds from the asset sale.
  3. The acquisition of Oneida Financial (ONFC) by Community Bank System (CBU) for $142 million in a cash or stock deal. Under the terms of the agreement, shareholders of Oneida Financial Corp can elect to receive either 0.5635 shares of Community Bank System, Inc. common stock or $20.00 in cash for each share of Oneida Financial Corp. common stock they hold, subject to an overall 60% stock and 40% cash split. We are treating this as an all stock deal.
  4. The acquisition of Emulex Corporation (ELX) by Avago Technologies Limited (AVGO) for $609 million or $8.00 per share in cash.
  5. The acquisition of UIL Holdings Corporation (UIL) by Iberdrola USA for $3 billion or $52.75 per share in a stock plus cash deal. UIL shareholders will receive $10.50 per share in cash. The value of the stock consideration received is based on the mid-point of the combined company’s estimated 2016 and 2017 earnings per share valued at peer P/E multiples of 17.5x and 16.5x, respectively. Given our inability to accurately calculate the stock part of this deal, we are not adding this deal to our database.
  6. Sorin S.p.A. and Cyberonics (CYBX) decided to merge to create a company with a combined equity value of approximately $2.7 billion. Under the terms of the agreement, each Cyberonics stockholder will receive one ordinary share of NewCo for every share of Cyberonics owned. Each Sorin shareholder will receive a fixed ratio of 0.0472 ordinary shares of NewCo for every Sorin share owned. Following completion of the transaction, Sorin shareholders will own approximately 46 percent of NewCo, and Cyberonics shareholders will own approximately 54 percent. Given our inability to accurately calculate the value of NewCo, we are not adding this deal to our database.
  7. The acquisition of Freescale Semiconductor (FSL) by NXP Semiconductors NV (NXPI) for $16.7 billion in a cash plus stock deal. Under the terms of the agreement, Freescale shareholders will receive $6.25 in cash and 0.3521 of an NXP ordinary share for each Freescale common share held at the close of the transaction.

Closed Deals:

  1. The acquisition of NPS Pharmaceuticals (NPSP) by Shire plc (SHPG) on February 23, 2015. It took 43 days for this deal to be completed.
  2. The acquisition of MWI Veterinary Supply (MWIV) by AmerisourceBergen Corporation (ABC) on February 24, 2015. It took 43 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)$1.82$1.2206/30/201548.90%148.73%
ODP02/04/2015Staples, Inc. (SPLS)$10.92$9.3712/31/201516.51%19.82%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.5812/31/201412.66%-75.74%
URZ01/05/2015Energy Fuels Inc. (UUUU)$1.27$1.1406/30/201511.39%34.66%
TWC02/13/2014Comcast Corporation (CMCSA)$170.72$154.0506/30/201510.82%32.91%
API02/02/2015Luna Innovations Incorporated (LUNA)$0.45$0.4106/30/201510.07%30.64%
BHI11/16/2014Halliburton Company (HAL)$67.09$62.5112/31/20157.33%8.80%
DTV05/18/2014AT&T, Inc. (T)$95.00$88.6005/31/20157.22%29.30%
LO07/15/2014Reynolds American Inc. (RAI)$72.50$68.4206/30/20155.96%18.13%
LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)$18.70$17.7306/30/20155.47%16.64%

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$1.22180,05506/30/201548.90%148.73%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$10.92$9.377,129,17112/31/201516.51%19.82%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.5817,20012/31/201412.66%0.00%
+URZ01/05/2015Energy Fuels Inc. (UUUU)All Stock$150 million$1.27$1.14203,17506/30/201511.39%34.66%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$170.72$154.052,196,74306/30/201510.82%32.91%
+API02/02/2015Luna Innovations Incorporated (LUNA)All StockN/A$0.45$0.4174,63806/30/201510.07%30.64%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$67.09$62.512,675,19212/31/20157.33%8.80%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$88.601,913,15005/31/20157.22%29.30%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$72.50$68.421,973,70406/30/20155.96%18.13%
+LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)Special Conditions$183.3 million$18.70$17.7310,99206/30/20155.47%16.64%
+PZG12/17/2014Coeur Mining, Inc. (CDE)All Stock$146 million$1.18$1.12291,68906/30/20155.12%15.57%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$94.15$90.37519,32512/31/20154.18%5.02%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.17$9.762,862,81504/30/20154.18%25.84%
+VYFC11/17/2014BNC Bancorp (BNCN)Special Conditions$101.3 million$20.50$19.703,68006/30/20154.06%12.35%
+OWW02/12/2015Expedia Inc. (EXPE)All Cash$1.6 billion$12.00$11.585,465,92506/30/20153.63%11.03%
+MIG12/30/2014Fosun International Limited (N/A)All Cash$433 million$8.65$8.36388,23312/31/20153.47%4.16%
+TLM12/15/2014Repsol S.A. (N/A)All Cash$13 billion$8.00$7.785,494,51306/30/20152.83%8.60%
+HSP02/05/2015Pfizer Inc. (PFE)All Cash$17 billion$90.00$87.542,688,65212/31/20152.81%3.37%
+ENTR02/03/2015MaxLinear, Inc. (MXL)Cash Plus Stock$287 million$3.03$2.95603,29206/30/20152.58%7.84%
+ONFC02/24/2015Community Bank System Inc. (CBU)All Stock$142 million$20.02$19.54180,42007/31/20152.43%5.88%
+IGT07/16/2014GTECH S.p.A. (GTKYY)Special Conditions$6.4 billion$18.25$17.844,635,94606/30/20152.30%6.99%
+WMGI10/27/2014Tornier N.V. (TRNX)All Stock$1.72 billion$25.20$24.631,657,80406/30/20152.29%6.98%
+PPO02/23/2015Asahi Kasei Corporation (AHKSY)All Cash$3.2 billion$60.50$59.291,749,68809/30/20152.04%3.51%
+SUSQ11/12/2014BB&T Corporation (BBT)Cash Plus Stock$2.5 billion$13.68$13.411,182,13606/30/20151.99%6.05%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$81.39474,23006/30/20151.98%6.02%
+HBOS12/10/2014Renasant Corp. (RNST)All Stock$258 million$26.39$25.8917,93309/30/20151.93%3.32%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$76.09$74.73307,58906/30/20151.81%5.52%
+SIBC12/30/2014First NBC Bank Holding Company (NBCB)All Cash$49 million$21.25$20.88N/A06/30/20151.77%5.39%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$54.43286,17212/31/20151.73%2.07%
+AGN11/16/2014Actavis plc (ACT)Cash Plus StockN/A$236.53$232.742,538,18406/30/20151.63%4.95%
+XLS02/06/2015Harris Corporation (HRS)Cash Plus Stock$4.56 billion$24.59$24.203,196,77506/30/20151.60%4.87%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$138.06484,86406/30/20151.41%4.27%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$33.05214,21912/31/20151.36%1.63%
+HVB11/05/2014Sterling Bancorp. (STL)All Stock$539 million$26.34$25.9922,10306/30/20151.36%4.12%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$104.24562,97106/30/20151.30%3.97%
+RIOM02/09/2015Tahoe Resources Inc. (TAHO)Cash Plus Stock$1.12 billion$3.17$3.13501,24104/15/20151.28%10.58%
+HBNK11/04/2014Berkshire Hills Bancorp Inc. (BHLB)All Stock$109 million$21.61$21.351,94505/15/20151.22%6.03%
+APL10/13/2014Targa Resources Partners LP (NGLS)Cash Plus Stock$5.8 billion$26.88$26.631,598,04203/31/20150.93%11.68%
+MWV01/26/2015Rock-Tenn Company (RKT)All Stock$16 billion$53.54$53.06954,40006/30/20150.90%2.75%
+PENX10/15/2014Ingredion Incorporated (INGR)All Cash$340 million$19.00$18.8321,16603/31/20150.90%11.36%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$47.93$47.5227,07103/31/20150.86%10.84%
+SMPL09/29/2014HomeStreet, Inc. (HMST)All StockN/A$17.30$17.1628,74003/31/20150.82%10.27%
+ELX02/25/2015Avago Technologies Limited (AVGO)All Cash$609 million$8.00$7.958,483,06011/01/20150.63%0.94%
+NBTF08/04/2014Peoples Bancorp Inc. (PEBO)Cash Plus Stock$109 million$29.84$29.6710003/31/20150.56%7.04%
+CFN10/05/2014Becton, Dickinson and Company (BDX)Cash Plus Stock$12.2 billion$60.40$60.081,582,31306/30/20150.53%1.62%
+SLXP02/22/2015Valeant Pharmaceuticals International, Inc. (VRX)All Cash$14.5 billion$158.00$157.202,626,38406/30/20150.51%1.55%
+RGP01/26/2015Energy Transfer Partners, L.P. (ETP)Cash Plus Stock$18 billion$24.50$24.391,086,27506/30/20150.47%1.43%
+CMSB09/25/2014Putnam County Savings Bank (N/A)All Cash$25.4 million$13.25$13.1930006/30/20150.45%1.38%
+CODE12/01/2014Cypress Semiconductor Corporation (CY)All Stock$4 billion$36.24$36.081,188,99606/30/20150.45%1.36%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.142,044,98809/30/20150.41%0.70%
+CHYR11/17/2014Vector Capital (N/A)All CashN/A$2.82$2.817,96103/31/20150.36%4.48%
+EOPN02/05/2015Insight Venture Partners (N/A)All Cash$273 million$8.60$8.57246,82006/30/20150.35%1.06%
+RVBD12/15/2014Thoma Bravo, LLC and Teachers� Private Capital (N/A)All Cash$3.6 billion$21.00$20.941,483,91806/30/20150.29%0.87%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$17.55$17.5115,94506/30/20150.23%0.69%
+AVIV10/31/2014Omega Healthcare Investors Inc. (OHI)All Stock$3 billion$36.05$35.98156,35403/31/20150.21%2.59%
+ADVS02/02/2015SS&C Technologies Holdings, Inc. (SSNC)All Cash$2.7 billion$44.25$44.17622,23006/30/20150.18%0.55%
+GFIG07/30/2014BGC Partners, Inc. (BGCP)All Cash$778 million$6.10$6.09211,46802/26/20150.16%0.00%
+SIMG01/27/2015Lattice Semiconductor Corporation (LSCC)All Cash$600 million$7.30$7.291,736,40203/31/20150.14%1.73%
+PTRY12/18/2014Alimentation Couche-Tard Inc. (N/A)All Cash$1.7 billion$36.75$36.7095,32506/30/20150.14%0.41%
+PETM12/14/2014a consortium led by BC Partners (N/A)All Cash$8.7 billion$83.00$82.91843,35506/30/20150.11%0.33%
+FSL03/02/2015NXP Semiconductors NV (NXPI)Cash Plus Stock$16.7 billion$36.14$36.111,126,68012/31/20150.08%0.10%
+PTP11/24/2014RenaissanceRe Holdings Ltd. (RNR)Special Conditions$1.9 billion$76.00$76.35226,84206/30/2015-0.46%-1.39%
+HLSS02/22/2015New Residential Investment Corp. (NRZ)All Cash$1.3 billion$18.25$18.413,427,41506/30/2015-0.87%-2.64%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$7.04$7.3947,71803/31/2015-4.76%-59.88%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$78.74717,98003/31/2015-5.38%-67.77%
+CRRC02/05/2015R.R. Donnelley & Sons Company (RRD)All Cash$261 million$23.00$24.3664,83906/30/2015-5.58%-16.98%
+COBK09/10/2014Cape Bancorp, Inc. (CBNJ)All Stock$55 million$12.61$13.4123,72203/31/2015-5.97%-75.16%
+ATLS10/13/2014Targa Resources Corp. (TRGP)Cash Plus Stock$1.9 billion$27.13$32.002,345,84003/31/2015-15.21%-191.39%

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