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Merger Arbitrage Mondays – May 11, 2015

  • May 11, 2015

Merger activity increased last week with seven new deals 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 201574
Total Number of Deals Not Completed in 20151
Total Number of Pending Deals
Cash Deals33
Stock Deals21
Stock & Cash Deals13
Special Conditions9
Total Number of Pending Deals76
Total Deal Size$600.99 billion

New Deals:

  1. The acquisition of PMFG (PMFG) by CECO Environmental (CECE) for approximately $150 million in a cash or stock deal. PMFG’s shareholders may elect to exchange each share of PMFG common stock for either $6.85 in cash or shares of CECO common stock having an equivalent value based on the volume weighted average trading price of CECO common stock for the 15 trading day period ending on the trading day immediately preceding the closing of the merger, subject to a collar. Elections are subject to proration such that PMFG‘s outstanding shares will be exchanged for approximately 55% of CECO common stock and 45% cash. We have entered this deal as a “special conditions” deal with a value of $6.85 because the amount of CECO stock PMFG’s shareholders will receive remains uncertain at this time.
  2. The acquisition of Cyan (CYNI) by Ciena Corporation (CIEN) for approximately $400 million in a stock and cash deal. Under the terms of the agreement, shareholders of Cyan will receive consideration equal to 0.224 shares of Cienna common stock. 89% of the consideration will be delivered in Ciena common stock and 11% will be delivered in cash based on the value of Ciena common stock at closing. We are treating this as an all stock deal with a 0.224 exchange ratio.
  3. The acquisition of Borderfree (BRDR) by Pitney Bowes for $395 million or $14 per share in cash.
  4. The acquisition of Synageva BioPharma (GEVA) by Alexion Pharmaceuticals (ALXN) for $8.4 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Synageva Biopharma will receive $115 in cash and 0.6581 Alexion shares, for each share of Synageva.
  5. The acquisition of Crestwood Midstream Partners (CMLP) by Crestwood Equity Partners (CEQP) for $7.5 billion in an all stock deal. Under the terms of the agreement, Crestwood Midstream unitholders will receive 2.75 units of Crestwood Equity for each unit of Crestwood Midstream they own.
  6. The acquisition of Quality Distribution (QLTY) by funds advised by Apax Partners for $800 million or $16.00 per share in cash.
  7. The acquisition of Micrel (MCRL) by Microchip Technology (MCHP) for $839 million. Under the terms of the agreement,shareholders of Micrel may elect to receive $14.00 per share in cash or $14.00 per share in Microchip common stock, valued at the average closing sale price for a share of Microchip common stock for the ten most recent trading days ending on the second to last trading day prior to the closing. 42% of the total consideration will be paid out in Microchip stock.

Deal Updates:

  1. On April 23, 2015, SS&C (SSNC) and Advent Software (ADVS) received a request for additional information from the United States Department of Justice in connection with SS&C’s pending acquisition of Advent. SS&C and Advent expect the closing of the transaction to occur in the second or third quarter of 2015.
  2. On May 4, 2015, HC2 Holdings (HCHCoffered $5 per share in cash and stock for MCG Capital (MCGC) versus the $4.75 cash bid made last week by PennantPark Floating Rate Capital (PFLT). HC2’s offer includes either 0.434 share of HC2 common stock or 0.191 share of a newly created preferred issue, and $0.226 in cash. MCG responded that it’s Board of Directors is in consultation with its financial and legal advisers, to review the terms of the proposal submitted by HC2 Holdings.
  3. Correction: The closing date for the OmniVision Technologies (OVTI) deal which was wrongly entered as December 31, 2016 in our database has been corrected and changed to April 30, 2016, which is the end of fiscal 2016 for the company.

Closed Deals:

  1. The acquisition of Auspex Pharmaceuticals (ASPX) by Teva Pharmaceutical Industries Limited (TEVA) on May 5, 2015. It took 36 days for this deal to be completed.
  2. The acquisition of Hyperion Therapeutics (HPTX) by Horizon Pharma (HZNP) on May 7, 2015. It took 38 days for this deal to be completed.
  3. The acquisition of Talisman Energy (TLM) Repsol S.A. on May 8, 2015. It took 144 days for this deal to be completed.
  4. The acquisition of Emulex Corporation (ELX) by Avago Technologies Limited (AVGO) on May 6, 2015. It took 70 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)$10.86$9.3412/31/201516.30%25.42%
OVTI04/30/2015Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone investment Co., Ltd. (N/A)$29.75$27.1604/30/20169.54%9.80%
HE12/03/2014NextEra Energy, Inc. (NEE)$33.50$30.8712/31/20158.52%13.29%
HCBK08/27/2012M&T Bank Corporation (MTB)$10.21$9.4110/31/20158.50%17.93%
LRE04/20/2015Vanguard Natural Resources, LLC (VNR)$9.15$8.4409/30/20158.37%21.52%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6512/31/20147.88%-21.95%
BHI11/16/2014Halliburton Company (HAL)$72.88$67.7012/31/20157.66%11.94%
URZ01/05/2015Energy Fuels Inc. (UUUU)$1.21$1.1306/30/20156.96%50.84%
POM04/30/2014Exelon Corporation (EXC)$27.25$25.4909/30/20156.90%17.75%
PMFG05/04/2015CECO Environmental Corp. (CECE)$6.85$6.4109/30/20156.86%17.64%

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

+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$10.86$9.346,721,76912/31/201516.30%25.42%
+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$27.16515,77304/30/20169.54%9.80%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$30.871,178,28212/31/20158.52%13.29%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.21$9.413,318,31310/31/20158.50%17.93%
+LRE04/20/2015Vanguard Natural Resources, LLC (VNR)All Stock$539 million$9.15$8.44155,91909/30/20158.37%21.52%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.65N/A12/31/20147.88%0.00%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$72.88$67.702,798,20712/31/20157.66%11.94%
+URZ01/05/2015Energy Fuels Inc. (UUUU)All Stock$150 million$1.21$1.1396,23906/30/20156.96%50.84%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$25.494,583,26509/30/20156.90%17.75%
+PMFG05/04/2015CECO Environmental Corp. (CECE)Special Conditions$150 million$6.85$6.41160,20509/30/20156.86%17.64%
+BALT04/08/2015Genco Shipping & Trading Limited (GSKNF)All StockN/A$1.51$1.42503,16009/30/20156.48%16.65%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$89.383,410,95205/31/20156.29%114.75%
+ADNC04/30/2015Knowles Corporation (KN)Special Conditions$85 million$5.00$4.75318,48209/30/20155.26%13.53%
+SQBK03/02/2015PacWest Bancorp (PACW)All Stock$849 million$27.51$26.2058,95712/31/20155.02%7.82%
+API02/02/2015Luna Innovations Incorporated (LUNA)All StockN/A$0.42$0.4095,56606/30/20154.88%35.63%
+LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)Special Conditions$183.3 million$18.70$17.932,71806/30/20154.29%31.35%
+CYNI05/04/2015Ciena Corporation (CIEN)All Stock$400 million$4.94$4.754,720,04809/30/20154.03%10.36%
+MCGC04/29/2015PennantPark Floating Rate Capital (PFLT)Special Conditions$175 million$4.75$4.57342,95209/30/20153.94%10.12%
+GEVA05/06/2015Alexion Pharmaceuticals, Inc. (ALXN)Cash Plus Stock$8.4 billion$222.28$213.901,965,06306/30/20153.92%28.61%
+RVM03/27/2015Hecla Mining Co. (HL)All Stock$20 million$0.49$0.4727,48306/30/20153.53%25.78%
+GAME04/03/2015Capitalhold Limited and Capitalcorp Limited (N/A)All Cash$1.9 billion$7.10$6.86190,41312/31/20153.50%5.46%
+OWW02/12/2015Expedia Inc. (EXPE)All Cash$1.6 billion$12.00$11.603,303,40906/30/20153.45%25.17%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$96.32$93.15237,79812/31/20153.40%5.30%
+PPO02/23/2015Asahi Kasei Corporation (AHKSY)All Cash$3.2 billion$60.50$58.60697,89509/30/20153.24%8.33%
+CTRX03/30/2015OptumRx (N/A)All Cash$12.8 billion$61.50$59.652,689,47812/31/20153.10%4.84%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$53.72287,10712/31/20153.07%4.79%
+ISSI03/12/2015a Chinese consortium of investors led by Summitview Capital (N/A)All CashN/A$19.25$18.76343,29809/30/20152.61%6.71%
+PCYC03/04/2015AbbVie Inc. (ABBV)All Cash$21 billion$261.25$255.00329,28006/30/20152.45%17.89%
+FSL03/02/2015NXP Semiconductors NV (NXPI)Cash Plus Stock$16.7 billion$42.86$41.871,905,60912/31/20152.37%3.69%
+HSP02/05/2015Pfizer Inc. (PFE)All Cash$17 billion$90.00$87.94770,74112/31/20152.34%3.65%
+BBNK03/09/2015Western Alliance Bancorporation (WAL)Cash Plus Stock$425 million$27.92$27.3627,97712/31/20152.06%3.22%
+SUSQ11/12/2014BB&T Corporation (BBT)Cash Plus Stock$2.5 billion$13.93$13.68753,99709/30/20151.84%4.74%
+QLTY05/06/2015funds advised by Apax Partners (N/A)All Cash$800 million$16.00$15.732,272,57409/30/20151.72%4.41%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$72.77$71.643,595,04206/30/20151.58%11.56%
+QEPM04/06/2015Tesoro Logistics LP (TLLP)All StockN/A$18.22$17.9462,38712/31/20151.57%2.45%
+ADVS02/02/2015SS&C Technologies Holdings, Inc. (SSNC)All Cash$2.7 billion$44.25$43.61563,33609/30/20151.47%3.77%
+MIG12/30/2014Fosun International Limited (N/A)All Cash$433 million$8.65$8.54111,51712/31/20151.29%2.01%
+DOVR04/14/2015Webster Capital (N/A)All CashN/A$8.50$8.4029,39006/30/20151.19%8.69%
+ONFC02/24/2015Community Bank System Inc. (CBU)All Stock$142 million$19.80$19.571,93007/31/20151.15%5.20%
+IGTE04/27/2015Capgemini (N/A)All Cash$4 billion$48.00$47.461,414,05712/31/20151.14%1.77%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$72.83$72.08267,40906/30/20151.03%7.55%
+SIBC12/30/2014First NBC Bank Holding Company (NBCB)All Cash$49 million$21.25$21.041,94606/30/20151.00%7.29%
+INFA04/07/2015Permira funds and Canada Pension Plan Investment Board (N/A)All Cash$5.3 billion$48.75$48.271,208,67709/30/20150.99%2.56%
+CKSW04/30/2015private funds managed by Francisco Partners Management L.P. (N/A)All Cash$438 million$12.65$12.53694,08707/31/20150.96%4.32%
+LTM03/16/2015Leonard Green & Partners and TPG (N/A)All Cash$4 billion$72.10$71.42574,43509/30/20150.95%2.45%
+MCRL05/07/2015Microchip Technology Inc. (MCHP)Special Conditions$839 million$14.00$13.8712,064,70908/15/20150.94%3.56%
+AEC04/22/2015Brookfield Asset Management Inc. (BAM)All Cash$2.5 billion$28.75$28.49769,16312/31/20150.91%1.42%
+WMGI10/27/2014Tornier N.V. (TRNX)All Stock$1.72 billion$25.71$25.48663,64706/30/20150.91%6.61%
+HBOS12/10/2014Renasant Corp. (RNST)All Stock$258 million$27.64$27.406,62009/30/20150.88%2.26%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$48.95$48.548,72403/31/20150.85%0.00%
+XLS02/06/2015Harris Corporation (HRS)Cash Plus Stock$4.56 billion$24.71$24.511,220,05506/30/20150.81%5.93%
+ZEP04/08/2015fund managed by New Mountain Capital, L.L.C. (N/A)All Cash$692 million$20.05$19.89271,14209/30/20150.80%2.07%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$138.90583,71806/30/20150.79%5.78%
+RTI03/09/2015Alcoa Inc. (AA)All Stock$1.5 billion$39.13$38.84348,33508/15/20150.75%2.85%
+MRH03/31/2015Endurance Specialty Holdings Ltd. (ENH)Cash Plus Stock$1.83 billion$38.68$38.41178,13709/30/20150.71%1.82%
+HVB11/05/2014Sterling Bancorp. (STL)All Stock$539 million$25.61$25.4733,71206/30/20150.56%4.09%
+MWV01/26/2015Rock-Tenn Company (RKT)All Stock$16 billion$49.34$49.07830,97306/30/20150.54%3.94%
+ALLB03/03/2015WSFS Financial Corp. (WSFS)All Stock$92 million$21.15$21.0795212/31/20150.37%0.58%
+ALU04/15/2015Nokia Corporation (NOK)All Stock$16.6 billion$3.81$3.8016,439,05606/30/20160.30%0.27%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$17.83$17.785,55606/30/20150.29%2.15%
+BRDR05/06/2015Pitney Bowes (N/A)All Cash$395 million$14.00$13.97438,95906/30/20150.21%1.57%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$105.41975,35406/30/20150.18%1.32%
+ARUN03/02/2015Hewlett-Packard Company (HPQ)All Cash$2.7 billion$24.67$24.641,149,76710/31/20150.12%0.26%
+NCFT03/30/2015Fortune Brands Home & Security, Inc. (FBHS)All Cash$600 million$25.50$25.5038,36506/30/20150.00%0.00%
+PKT04/22/2015private funds managed by Francisco Partners Management, L.P. (N/A)All Cash$240 million$11.50$11.50307,77406/30/20150.00%0.00%
+VYFC11/17/2014BNC Bancorp (BNCN)Special Conditions$101.3 million$20.50$20.511,50006/30/2015-0.05%-0.36%
+EXL04/10/2015Blackstone Property Partners L.P. (BX)All Cash$2 billion$15.85$15.87407,64812/31/2015-0.13%-0.20%
+KFX03/24/2015Lexmark International Inc. (LXK)All Cash$1 billion$11.00$11.02620,79406/30/2015-0.18%-1.32%
+PLMT04/22/2015United Community Banks, Inc. (UCBI)All Stock$240.5 million$18.09$18.186,00412/31/2015-0.49%-0.77%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$84.253,221,38706/30/2015-1.48%-10.83%
+FSGI03/25/2015Atlantic Capital Bancshares, Inc. (N/A)All Cash$160 million$2.35$2.4286,89510/31/2015-2.89%-6.10%
+CMLP05/06/2015Crestwood Equity Partners LP (CEQP)All Stock$7.5 billion$14.30$14.811,139,23309/30/2015-3.44%-8.85%
+CRRC02/05/2015R.R. Donnelley & Sons Company (RRD)All Cash$261 million$23.00$23.8348,31806/30/2015-3.48%-25.43%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$78.94314,58905/31/2015-5.62%-102.65%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$6.77$7.73260,11203/31/2015-12.47%111.00%
+INXN03/09/2015Telecity Group plc (TCY.L)All StockN/A$0.04$29.551,617,71012/31/2015-99.88%-155.79%

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