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Merger Arbitrage Mondays – June 1, 2015

  • May 31, 2015

Merger activity decreased last week with six 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 201581
Total Number of Deals Not Completed in 20152
Total Number of Pending Deals
Cash Deals37
Stock Deals22
Stock & Cash Deals15
Special Conditions10
Total Number of Pending Deals84
Total Deal Size$768.39 billion

New Deals:

  1. The acquisition of Time Warner Cable (TWC) by Charter Communications (CHTR) for $78.7 billion in a cash plus stock deal. Under the terms of the agreement, Charter will provide $100.00 in cash and shares of a new public parent company (“New Charter”) equivalent to 0.5409 shares of CHTR for each Time Warner Cable share outstanding. In addition, Charter will provide an election option for each Time Warner Cable stockholder, other than Liberty Broadband Corporation or Liberty Interactive Corporation, who will receive all stock, to receive $115.00 of cash and New Charter shares equivalent to 0.4562 shares of CHTR for each Time Warner Cable share they own.
  2. The acquisition of Geeknet (GKNT) by Hot Topic for $122 million or $17.50 per share in cash. Geeknet showed up on my radar as a result of several insider transactions by Kenneth Langone over a period of several years.
  3. The acquisition of SFX Entertainment (SFXE) by an affiliate of Robert F.X. Sillerman, the Company’s Chairman and Chief Executive Officer for $774 million or $5.25 per share in cash.
  4. The acquisition of Meru Networks (MERU) by Fortinet (FTNT) for $44 million or $1.63 per share in cash. This was another company that saw several insider transactions from 2011 to 2013 but it looks like the insiders got this one wrong.
  5. The acquisition of Rally Software Development (RALY) by CA, Inc. (CA) for $480 million or $19.50 per share in cash.
  6. The acquisition of Broadcom (BRCM) by Avago Technologies Limited (AVGO) for $37 billion. Under the terms of the agreement, Broadcom shareholders will have the ability to elect to receive, for each Broadcom share held: (i) $54.50 in cash; (ii) 0.4378 ordinary shares in a newly-formed Singapore holding company (“HoldCo”); (iii) a restricted equity security that is the economic equivalent of 0.4378 ordinary shares of HoldCo that will not be transferable or saleable for a period of one to two years after closing; or (iv) a combination thereof. We are treating this as an all cash deal as the share portion of the transaction will be determined only after the formation of the new company.

Deal Updates:

  1. On May 27, 2015, The American Postal Workers Union filed a formal report asking federal anti-trust regulators to strike down Staples’ (SPLS) $6.3 billion deal to purchase Office Depot (ODP).
  2. On May 29, 2015, Integrated Silicon Solution (ISSI) announced that it had entered into an amendment to its previously announced merger agreement with Uphill Investment. Under the terms of the amendment, the merger consideration was increased to $20.00 per share in cash, from the $19.25 per share in cash. Following the announcement, Cypress Semiconductor Corporation (CYincreased its offer to acquire Integrated Silicon Solution to $20.25 per share beating Uphill Investment Co’s increased offer made earlier on Friday.
  3. On May 29, 2015, Dollar Tree (DLTR) agreed to sell 330 Family Dollar Stores (FDO) stores to private equity firm Sycamore Partners to get antitrust approval for its $8.5 billion takeover of Family Dollar.
  4. On May 29, 2015, Equinix (EQIX) offered to buy British peer TelecityGroup (TCY.L) in a deal worth 2.35 billion pounds ($3.6 billion), as a result of which the Implementation Agreement between Interxion (INXN) and TelecityGroup has been terminated.

Closed Deals:

  1. The acquisition of Pharmacyclics (PCYC) by AbbVie (ABBV) on May 26, 2015. It took 83 days for this deal to be completed.
  2. The  acquisition of Exelis (XLS) by Harris Corporation (HRS) on May 29, 2015. It took 112 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

ODP02/04/2015Staples, Inc. (SPLS)$10.85$9.2712/31/201517.08%29.27%
OVTI04/30/2015Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. (N/A)$29.75$26.9604/30/201610.35%11.31%
LRE04/20/2015Vanguard Natural Resources, LLC (VNR)$8.73$7.9409/30/201510.00%30.17%
HE12/03/2014NextEra Energy, Inc. (NEE)$33.50$30.5412/31/20159.69%16.61%
EROC05/21/2015Vanguard Natural Resources, LLC (VNR)$2.94$2.7109/30/20158.41%25.36%
BHI11/16/2014Halliburton Company (HAL)$69.85$64.4612/31/20158.36%14.32%
TWC05/26/2015Charter Communications, Inc. (CHTR)$196.83$181.7212/31/20158.32%14.25%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6508/15/20147.88%-9.92%
SFXE05/26/2015an affiliate of Robert F.X. Sillerman, the Company’s Chairman and Chief Executive Officer (N/A)$5.25$4.8712/31/20157.80%13.37%
HCBK08/27/2012M&T Bank Corporation (MTB)$10.16$9.51510/31/20156.75%16.22%

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

+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$10.85$9.273,536,09012/31/201517.08%29.27%
+OVTI04/30/2015Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. (N/A)All Cash$1.9 billion$29.75$26.96684,44604/30/201610.35%11.31%
+LRE04/20/2015Vanguard Natural Resources, LLC (VNR)All Stock$539 million$8.73$7.9495,20409/30/201510.00%30.17%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$30.54334,37412/31/20159.69%16.61%
+EROC05/21/2015Vanguard Natural Resources, LLC (VNR)All Stock$614 million$2.94$2.71453,69209/30/20158.41%25.36%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$69.85$64.461,905,78412/31/20158.36%14.32%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$196.83$181.724,672,37912/31/20158.32%14.25%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.65N/A08/15/20147.88%0.00%
+SFXE05/26/2015an affiliate of Robert F.X. Sillerman, the Company�s Chairman and Chief Executive Officer (N/A)All Cash$774 million$5.25$4.871,324,93412/31/20157.80%13.37%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.16$9.5154,438,42210/31/20156.75%16.22%
+OWW02/12/2015Expedia Inc. (EXPE)All Cash$1.6 billion$12.00$11.272,861,67106/30/20156.48%81.53%
+PMFG05/04/2015CECO Environmental Corp. (CECE)Special Conditions$150 million$6.85$6.4650,54309/30/20156.04%18.21%
+RVM03/27/2015Hecla Mining Co. (HL)All Stock$20 million$0.50$0.48281,26506/30/20155.09%64.09%
+GEVA05/06/2015Alexion Pharmaceuticals, Inc. (ALXN)Cash Plus Stock$8.4 billion$222.82$213.41501,46606/30/20154.41%55.52%
+ADNC04/30/2015Knowles Corporation (KN)Special Conditions$85 million$5.00$4.79257,90409/30/20154.38%13.22%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$91.042,342,29405/31/20154.35%0.00%
+LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)Special Conditions$183.3 million$18.70$18.065,29006/30/20153.54%44.60%
+SQBK03/02/2015PacWest Bancorp (PACW)All Stock$849 million$26.92$26.12174,69712/31/20153.06%5.25%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$94.90$92.18213,97712/31/20152.95%5.06%
+OCR05/21/2015CVS Health Corporation (CVS)All Cash$12.7 billion$98.00$95.293,651,30112/31/20152.84%4.87%
+CTRX03/30/2015OptumRx (N/A)All Cash$12.8 billion$61.50$59.858,446,85012/31/20152.76%4.72%
+CMLP05/06/2015Crestwood Equity Partners LP (CEQP)All Stock$7.5 billion$13.75$13.42959,60309/30/20152.46%7.42%
+PLL05/13/2015Danaher Corp. (DHR)All Cash$13.8 billion$127.20$124.441,360,68112/31/20152.22%3.80%
+CYNI05/04/2015Ciena Corporation (CIEN)All Stock$400 million$5.40$5.29389,92709/30/20152.13%6.44%
+GAME04/03/2015Capitalhold Limited and Capitalcorp Limited (N/A)All Cash$1.9 billion$7.10$6.955246,43512/31/20152.08%3.57%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$54.25690,20912/31/20152.06%3.54%
+BALT04/08/2015Genco Shipping & Trading Limited (GSKNF)All StockN/A$1.55$1.52121,36109/30/20152.03%6.13%
+TSRE05/11/2015Independence Realty Trust, Inc. (IRT)Cash Plus StockN/A$7.43$7.2859,81509/30/20152.02%6.11%
+WPZ05/13/2015Williams Companies, Inc. (WMB)All Stock$13.8 billion$56.98$55.881,438,03709/30/20151.96%5.92%
+HSP02/05/2015Pfizer Inc. (PFE)All Cash$17 billion$90.00$88.42960,10712/31/20151.79%3.06%
+ROSE05/11/2015Noble Energy, Inc. (NBL)All Stock$2.1 billion$23.73$23.361,577,85409/30/20151.58%4.76%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$73.04$71.91441,07406/30/20151.57%19.78%
+URZ01/05/2015Energy Fuels Inc. (UUUU)All Stock$150 million$1.15$1.1345,18706/30/20151.55%19.49%
+MIG12/30/2014Fosun International Limited (N/A)All Cash$433 million$8.65$8.52182,60012/31/20151.53%2.61%
+ALU04/15/2015Nokia Corporation (NOK)All Stock$16.6 billion$4.01$3.954,983,34806/30/20161.51%1.39%
+FSL03/02/2015NXP Semiconductors NV (NXPI)Cash Plus Stock$16.7 billion$45.77$45.125,463,49312/31/20151.45%2.48%
+QEPM04/06/2015Tesoro Logistics LP (TLLP)All StockN/A$17.85$17.61218,18712/31/20151.37%2.35%
+ANN05/18/2015Ascena Retail Group Inc. (ASNA)Cash Plus Stock$2.15 billion$47.39$46.751,265,43712/31/20151.37%2.35%
+MRH03/31/2015Endurance Specialty Holdings Ltd. (ENH)Cash Plus Stock$1.83 billion$38.58$38.07316,54909/30/20151.33%4.03%
+QLTY05/06/2015funds advised by Apax Partners (N/A)All Cash$800 million$16.00$15.82434,23009/30/20151.14%3.43%
+ADVS02/02/2015SS&C Technologies Holdings, Inc. (SSNC)All Cash$2.7 billion$44.25$43.76550,37609/30/20151.12%3.38%
+MCGC04/29/2015PennantPark Floating Rate Capital (PFLT)Special Conditions$175 million$4.75$4.70237,32809/30/20151.06%3.21%
+SUSQ11/12/2014BB&T Corporation (BBT)Cash Plus Stock$2.5 billion$14.04$13.89986,73409/30/20151.05%3.17%
+IGTE04/27/2015Capgemini (N/A)All Cash$4 billion$48.00$47.512,184,57012/31/20151.03%1.77%
+PPO02/23/2015Asahi Kasei Corporation (AHKSY)All Cash$3.2 billion$60.50$59.91476,02309/30/20150.98%2.97%
+HBOS12/10/2014Renasant Corp. (RNST)All Stock$258 million$27.28$27.0718,94409/30/20150.77%2.33%
+PLMT04/22/2015United Community Banks, Inc. (UCBI)All Stock$240.5 million$18.58$18.444,32812/31/20150.73%1.26%
+INFA04/07/2015Permira funds and Canada Pension Plan Investment Board (N/A)All Cash$5.3 billion$48.75$48.40701,67009/30/20150.72%2.18%
+CKSW04/30/2015private funds managed by Francisco Partners Management L.P. (N/A)All Cash$438 million$12.65$12.57131,46707/31/20150.64%3.87%
+MERU05/27/2015Fortinet Inc. (FTNT)All Cash$44 million$1.63$1.62283,46109/30/20150.62%1.86%
+MCRL05/07/2015Microchip Technology Inc. (MCHP)Special Conditions$839 million$14.00$13.92549,23208/15/20150.57%2.80%
+AEC04/22/2015Brookfield Asset Management Inc. (BAM)All Cash$2.5 billion$28.75$28.59980,00012/31/20150.56%0.96%
+MWV01/26/2015Rock-Tenn Company (RKT)All Stock$16 billion$50.81$50.542,130,94006/30/20150.53%6.70%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$139.303,074,70606/30/20150.50%6.32%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$72.83$72.489,930,71106/30/20150.48%6.02%
+ZEP04/08/2015fund managed by New Mountain Capital, L.L.C. (N/A)All Cash$692 million$20.05$19.96198,82609/30/20150.45%1.36%
+RALY05/27/2015CA, Inc. (CA)All Cash$480 million$19.50$19.421,558,07409/30/20150.41%1.24%
+HVB11/05/2014Sterling Bancorp. (STL)All Stock$539 million$25.94$25.8429,14406/30/20150.38%4.83%
+RTI03/09/2015Alcoa Inc. (AA)All Stock$1.5 billion$35.39$35.27240,40608/15/20150.35%1.71%
+LTM03/16/2015Leonard Green & Partners and TPG (N/A)All Cash$4 billion$72.10$71.90420,39109/30/20150.28%0.84%
+ONFC02/24/2015Community Bank System Inc. (CBU)All Stock$142 million$19.90$19.8580107/31/20150.24%1.45%
+BBNK03/09/2015Western Alliance Bancorporation (WAL)Cash Plus Stock$425 million$27.92$27.8746,50412/31/20150.20%0.34%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$18.31$18.2721,19506/30/20150.19%2.43%
+SIBC12/30/2014First NBC Bank Holding Company (NBCB)All Cash$49 million$21.25$21.2110006/30/20150.19%2.37%
+DOVR04/14/2015Webster Capital (N/A)All CashN/A$8.50$8.48527,76206/30/20150.18%2.23%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$49.37$49.3114,50806/30/20150.12%1.46%
+BRDR05/06/2015Pitney Bowes (N/A)All Cash$395 million$14.00$13.99141,41206/30/20150.07%0.90%
+WMGI10/27/2014Tornier N.V. (TRNX)All Stock$1.72 billion$27.40$27.40900,24306/30/20150.00%0.06%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.256,263,03209/30/20150.00%0.00%
+VYFC11/17/2014BNC Bancorp (BNCN)Special Conditions$101.3 million$20.50$20.503606/30/20150.00%0.00%
+PKT04/22/2015private funds managed by Francisco Partners Management, L.P. (N/A)All Cash$240 million$11.50$11.50687,86706/30/20150.00%0.00%
+AOL05/12/2015Verizon Communications Inc. (VZ)All Cash$4.4 billion$50.00$50.011,251,80206/30/2015-0.02%-0.25%
+FRS05/22/2015an affiliate of NRD Partners I, L.P. (N/A)All Cash$175 million$34.00$34.068,68009/30/2015-0.18%-0.53%
+EXL04/10/2015Blackstone Property Partners L.P. (BX)All Cash$2 billion$15.85$15.891,229,59312/31/2015-0.25%-0.43%
+GTI05/18/2015affiliate of Brookfield Asset Management Inc. (N/A)All Cash$546 million$5.05$5.0714,054,14207/31/2015-0.39%-2.40%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$84.60653,19206/30/2015-1.89%-23.80%
+ISSI03/12/2015a Chinese consortium of investors led by Summitview Capital (N/A)All CashN/A$20.00$20.521,816,69809/30/2015-2.53%-7.64%
+FSGI03/25/2015Atlantic Capital Bancshares, Inc. (N/A)All Cash$160 million$2.35$2.4317,04610/31/2015-3.29%-7.91%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$77.521,685,23105/31/2015-3.90%1421.96%
+BRCM05/28/2015Avago Technologies Limited (AVGO)Special Conditions$37 billion$54.50$56.8533,358,47103/31/2016-4.13%-4.96%
+CRRC02/05/2015R.R. Donnelley & Sons Company (RRD)All Cash$261 million$23.00$24.80100,11906/30/2015-7.26%-91.35%
+GKNT05/26/2015Hot Topic, Inc. (N/A)All Cash$122 million$17.50$19.90300,85006/30/2015-12.06%-151.79%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$6.22$7.35115,28003/31/2015-15.44%90.91%
+ALLB03/03/2015WSFS Financial Corp. (WSFS)All Stock$92 million$7.14$21.0721012/31/2015-66.10%-113.27%

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