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Merger Arbitrage Mondays – March 30, 2015

  • March 29, 2015

Merger activity increased last week with three new deals announced and one deal 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 2015 53
Total Number of Deals Not Completed in 2015 1
Total Number of Pending Deals
Cash Deals 27
Stock Deals 19
Stock & Cash Deals 15
Special Conditions 6
Total Number of Pending Deals 67
Total Deal Size $570.94 billion

New Deals:

  1. The acquisition of Kofax Limited (KFX) by Lexmark International (LXK) for approximately $1 billion or $11.00 per share in cash.
  2. The acquisition of First Security Group (FSGI) by Atlantic Capital Bancshares for approximately $160 million or $2.35 per share in cash. FSG shareholders may elect cash equal to $2.35 per share, stock based on a fixed exchange ratio of 0.188 shares of Atlantic Capital common stock for each FSG share or any combination thereof. The total consideration will consist of 40% cash and 60% stock. We are treating this as an all-cash deal.
  3. On March 25, 2015, H.J. Heinz Company and Kraft Foods Group (KRFTannounced that they have entered into a definitive merger agreement to create The Kraft Heinz Company. Under the terms of the agreement, Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51% on a fully diluted basis. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share.

Closed Deals:

  1. The acquisition of E2open (EOPN) by Insight Venture Partners on March 26, 2015. It took 49 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

UPI 12/22/2014 Vision-Sciences Inc. (VSCI) $1.60 $1.30 06/30/2015 22.97% 91.12%
ODP 02/04/2015 Staples, Inc. (SPLS) $10.77 $9.24 12/31/2015 16.61% 21.97%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.53 12/31/2014 16.34% -67.01%
HLSS 02/22/2015 New Residential Investment Corp. (NRZ) $18.25 $16.37 06/30/2015 11.48% 45.56%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $85.32 05/31/2015 11.35% 66.79%
API 02/02/2015 Luna Innovations Incorporated (LUNA) $0.43 $0.39 06/30/2015 10.01% 39.73%
TWC 02/13/2014 Comcast Corporation (CMCSA) $160.83 $147.28 06/30/2015 9.20% 36.49%
ISSI 03/12/2015 a Chinese consortium of investors led by Summitview Capital (N/A) $19.25 $17.76 09/30/2015 8.39% 16.64%
BHI 11/16/2014 Halliburton Company (HAL) $67.45 $62.79 12/31/2015 7.42% 9.82%
URZ 01/05/2015 Energy Fuels Inc. (UUUU) $1.18 $1.11 06/30/2015 6.14% 24.34%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.


Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ UPI 12/22/2014 Vision-Sciences Inc. (VSCI) All Stock N/A $1.60 $1.30 131,232 06/30/2015 22.97% 91.12%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $10.77 $9.24 5,235,850 12/31/2015 16.61% 21.97%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.53 10,316 12/31/2014 16.34% 0.00%
+ HLSS 02/22/2015 New Residential Investment Corp. (NRZ) All Cash $1.3 billion $18.25 $16.37 1,759,496 06/30/2015 11.48% 45.56%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $85.32 1,661,558 05/31/2015 11.35% 66.79%
+ API 02/02/2015 Luna Innovations Incorporated (LUNA) All Stock N/A $0.43 $0.39 25,242 06/30/2015 10.01% 39.73%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $160.83 $147.28 1,954,426 06/30/2015 9.20% 36.49%
+ ISSI 03/12/2015 a Chinese consortium of investors led by Summitview Capital (N/A) All Cash N/A $19.25 $17.76 544,911 09/30/2015 8.39% 16.64%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $67.45 $62.79 2,547,885 12/31/2015 7.42% 9.82%
+ URZ 01/05/2015 Energy Fuels Inc. (UUUU) All Stock $150 million $1.18 $1.11 186,206 06/30/2015 6.14% 24.34%
+ SQBK 03/02/2015 PacWest Bancorp (PACW) All Stock $849 million $27.39 $25.98 70,011 12/31/2015 5.42% 7.17%
+ LNBB 12/15/2014 Northwest Bancshares, Inc. (NWBI) Special Conditions $183.3 million $18.70 $17.85 4,053 06/30/2015 4.76% 18.89%
+ TLM 12/15/2014 Repsol S.A. (N/A) All Cash $13 billion $8.00 $7.66 11,063,600 06/30/2015 4.44% 17.61%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $71.04 $68.19 4,265,876 06/30/2015 4.18% 16.57%
+ WMGI 10/27/2014 Tornier N.V. (TRNX) All Stock $1.72 billion $26.63 $25.61 401,086 06/30/2015 3.98% 15.77%
+ DRC 09/21/2014 Siemens (N/A) All Cash $7.6 billion $83.00 $79.96 1,128,661 06/30/2015 3.80% 15.08%
+ CYN 01/22/2015 Royal Bank of Canada (RY) Cash Plus Stock $5.4 billion $91.92 $88.65 323,974 12/31/2015 3.69% 4.88%
+ INXN 03/09/2015 Telecity Group plc (TCY.L) All Stock N/A $29.99 $28.93 525,946 12/31/2015 3.66% 4.83%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.34 265,236 12/31/2015 3.59% 4.74%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $74.36 $71.95 280,285 06/30/2015 3.35% 13.29%
+ OWW 02/12/2015 Expedia Inc. (EXPE) All Cash $1.6 billion $12.00 $11.67 1,911,830 06/30/2015 2.83% 11.22%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $17.78 2,237,676 06/30/2015 2.64% 10.49%
+ PPO 02/23/2015 Asahi Kasei Corporation (AHKSY) All Cash $3.2 billion $60.50 $58.99 534,487 09/30/2015 2.56% 5.08%
+ HSP 02/05/2015 Pfizer Inc. (PFE) All Cash $17 billion $90.00 $87.88 875,713 12/31/2015 2.41% 3.19%
+ GFIG 07/30/2014 BGC Partners, Inc. (BGCP) All Cash $778 million $6.10 $5.96 508,514 02/26/2015 2.35% 0.00%
+ ALLB 03/03/2015 WSFS Financial Corp. (WSFS) All Stock $92 million $21.97 $21.49 11,820 12/31/2015 2.24% 2.96%
+ HBOS 12/10/2014 Renasant Corp. (RNST) All Stock $258 million $27.35 $26.83 12,368 09/30/2015 1.95% 3.87%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.50 $10.31 3,401,507 04/30/2015 1.85% 21.84%
+ RTI 03/09/2015 Alcoa Inc. (AA) All Stock $1.5 billion $35.96 $35.31 394,637 08/15/2015 1.84% 4.87%
+ PCYC 03/04/2015 AbbVie Inc. (ABBV) All Cash $21 billion $261.25 $256.55 704,858 06/30/2015 1.83% 7.27%
+ SIBC 12/30/2014 First NBC Bank Holding Company (NBCB) All Cash $49 million $21.25 $20.87 1 06/30/2015 1.82% 7.22%
+ CNL 10/20/2014 Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A) All Cash $4.7 billion $55.37 $54.40 235,624 12/31/2015 1.78% 2.36%
+ FSL 03/02/2015 NXP Semiconductors NV (NXPI) Cash Plus Stock $16.7 billion $41.43 $40.71 2,547,208 12/31/2015 1.77% 2.34%
+ MIG 12/30/2014 Fosun International Limited (N/A) All Cash $433 million $8.65 $8.51 109,661 12/31/2015 1.65% 2.18%
+ SUSQ 11/12/2014 BB&T Corporation (BBT) Cash Plus Stock $2.5 billion $13.79 $13.57 1,366,147 06/30/2015 1.61% 6.37%
+ LTM 03/16/2015 Leonard Green & Partners and TPG (N/A) All Cash $4 billion $72.10 $70.98 425,877 09/30/2015 1.58% 3.13%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.84 743,743 09/30/2015 1.53% 3.03%
+ VIAS 09/22/2014 TTM Technologies Inc. (TTMI) Cash Plus Stock $927 million $17.58 $17.33 8,874 06/30/2015 1.43% 5.68%
+ RIOM 02/09/2015 Tahoe Resources Inc. (TAHO) Cash Plus Stock $1.12 billion $2.66 $2.62 391,498 04/15/2015 1.41% 32.13%
+ BBNK 03/09/2015 Western Alliance Bancorporation (WAL) Cash Plus Stock $425 million $26.07 $25.73 22,794 12/31/2015 1.31% 1.73%
+ SIAL 09/22/2014 Merck KGaA (N/A) All Cash $17 billion $140.00 $138.21 477,767 06/30/2015 1.30% 5.14%
+ VYFC 11/17/2014 BNC Bancorp (BNCN) Special Conditions $101.3 million $20.50 $20.25 4,602 06/30/2015 1.23% 4.90%
+ HVB 11/05/2014 Sterling Bancorp. (STL) All Stock $539 million $25.56 $25.26 25,525 06/30/2015 1.17% 4.64%
+ XLS 02/06/2015 Harris Corporation (HRS) Cash Plus Stock $4.56 billion $24.49 $24.22 1,992,023 06/30/2015 1.12% 4.45%
+ ONFC 02/24/2015 Community Bank System Inc. (CBU) All Stock $142 million $19.73 $19.53 6,127 07/31/2015 1.04% 3.10%
+ MWV 01/26/2015 Rock-Tenn Company (RKT) All Stock $16 billion $49.92 $49.49 791,967 06/30/2015 0.87% 3.45%
+ MVNR 03/02/2015 Mitel Networks Corporation (MITL) Cash Plus Stock $560 million $17.96 $17.82 182,879 06/30/2015 0.78% 3.08%
+ ARUN 03/02/2015 Hewlett-Packard Company (HPQ) All Cash $2.7 billion $24.67 $24.49 1,581,513 10/31/2015 0.73% 1.25%
+ KFX 03/24/2015 Lexmark International Inc. (LXK) All Cash $1 billion $11.00 $10.92 6,749,756 06/30/2015 0.73% 2.91%
+ TRW 09/15/2014 ZF Friedrichshafen AG (“ZF”) (N/A) All Cash $13.5 billion $105.60 $104.90 575,785 06/30/2015 0.67% 2.65%
+ RGP 01/26/2015 Energy Transfer Partners, L.P. (ETP) Cash Plus Stock $18 billion $23.08 $22.96 1,076,399 06/30/2015 0.51% 2.03%
+ RVBD 12/15/2014 Thoma Bravo, LLC and Teachers� Private Capital (N/A) All Cash $3.6 billion $21.00 $20.90 2,067,648 06/30/2015 0.48% 1.90%
+ ADVS 02/02/2015 SS&C Technologies Holdings, Inc. (SSNC) All Cash $2.7 billion $44.25 $44.07 681,511 06/30/2015 0.41% 1.62%
+ ELX 02/25/2015 Avago Technologies Limited (AVGO) All Cash $609 million $8.00 $7.97 1,770,400 11/01/2015 0.38% 0.64%
+ AVIV 10/31/2014 Omega Healthcare Investors Inc. (OHI) All Stock $3 billion $36.19 $36.10 477,725 03/31/2015 0.25% 89.99%
+ HBNK 11/04/2014 Berkshire Hills Bancorp Inc. (BHLB) All Stock $109 million $22.32 $22.28 4,534 05/15/2015 0.20% 1.55%
+ ENTR 02/03/2015 MaxLinear, Inc. (MXL) Cash Plus Stock $287 million $2.95 $2.95 286,883 06/30/2015 0.12% 0.46%
+ CMSB 09/25/2014 Putnam County Savings Bank (N/A) All Cash $25.4 million $13.25 $13.24 3 06/30/2015 0.08% 0.30%
+ BKYF 09/08/2014 BB&T Corporation (BBT) Cash Plus Stock $363 million $48.37 $48.38 15,898 03/31/2015 -0.01% -3.79%
+ VTSS 03/18/2015 Microsemi Corporation (MSCC) All Cash $389 million $5.28 $5.30 708,982 06/28/2015 -0.38% -1.53%
+ FSGI 03/25/2015 Atlantic Capital Bancshares, Inc. (N/A) All Cash $160 million $2.35 $2.36 194,436 10/31/2015 -0.42% -0.72%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $6.44 $6.47 103,917 03/31/2015 -0.45% -164.73%
+ PZG 12/17/2014 Coeur Mining, Inc. (CDE) All Stock $146 million $1.02 $1.04 647,581 06/30/2015 -2.30% -9.13%
+ COBK 09/10/2014 Cape Bancorp, Inc. (CBNJ) All Stock $55 million $13.48 $13.90 1,554 03/31/2015 -2.99% -1090.80%
+ CRRC 02/05/2015 R.R. Donnelley & Sons Company (RRD) All Cash $261 million $23.00 $24.22 84,889 06/30/2015 -5.04% -19.98%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $79.45 712,917 03/31/2015 -6.23% -2274.07%
+ SLXP 02/22/2015 Valeant Pharmaceuticals International, Inc. (VRX) All Cash $14.5 billion $158.00 $172.60 1,019,332 06/30/2015 -8.46% -33.56%

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