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Merger Arbitrage Mondays – May 18, 2015

  • May 17, 2015

Merger activity decreased last week with five 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 201576
Total Number of Deals Not Completed in 20151
Total Number of Pending Deals
Cash Deals34
Stock Deals22
Stock & Cash Deals14
Special Conditions9
Total Number of Pending Deals79
Total Deal Size$635.09 billion

New Deals:

  1. The acquisition of Rosetta Resources (ROSE) by Noble Energy (NBL) in an all stock deal for $2.1 billion. Under the terms of the agreement, shareholders of Rosetta Resources will receive 0.542 of a share of Noble Energy common stock for each share of Rosetta common stock held.
  2. The acquisition of Trade Street Residential (TSRE) by Independence Realty Trust (IRT) in a cash plus stock deal. Under the terms of the agreement, shareholders of Trade Street Residential will receive $3.80 in cash and 0.4108 of newly issued IRT common stock. IRT has the option to increase the cash portion of the consideration from $3.80 per share up to $4.56 per share of Trade Street common stock with a corresponding decrease in the stock portion of the merger consideration, in which case the exchange ratio will be adjusted to reflect the new consideration mix.
  3. The acquisition of AOL (AOL) by Verizon Communications (VZ) for $4.4 billion or $50.00 per share in cash.
  4. The acquisition of Williams Partners (WPZ) by Williams Companies (WMB) for $13.8 billion in an all stock deal. Under the terms of the agreement, shareholders of Williams Partners will receive 1.115 of Williams common shares per unit of Williams Partners.
  5. The acquisition of Pall Corporation (PLL) by Danaher (DHR) for $13.8 billion or $127.20 per share in cash.

Deal Updates:

  1. On May 15, 2015, AT&T (T) and DIRECTV (DTV) announced that they have decided to extend the May 18, 2015 “Termination Date” of the Merger Agreement for a short period of time to facilitate obtaining final regulatory approval required to close the merger.

Closed Deals:

  1. The acquisition of Advanced Photonix (API) by Luna Innovations Incorporated (LUNA) on May 11, 2015. It took 98 days for this deal to be completed.
  2. The acquisition of Norcraft Companies (NCFT) by Fortune Brands Home & Security (FBHS) on May 12, 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

ODP02/04/2015Staples, Inc. (SPLS)$10.84$9.1812/31/201518.06%29.05%
LRE04/20/2015Vanguard Natural Resources, LLC (VNR)$8.97$8.0009/30/201512.06%32.61%
OVTI04/30/2015Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. (N/A)$29.75$27.2104/30/20169.33%9.79%
HCBK08/27/2012M&T Bank Corporation (MTB)$10.18$9.3810/31/20158.58%18.86%
BHI11/16/2014Halliburton Company (HAL)$71.30$65.8512/31/20158.28%13.32%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6512/31/20147.88%-20.84%
HE12/03/2014NextEra Energy, Inc. (NEE)$33.50$31.1312/31/20157.61%12.24%
PMFG05/04/2015CECO Environmental Corp. (CECE)$6.85$6.4509/30/20156.20%16.77%
URZ01/05/2015Energy Fuels Inc. (UUUU)$1.25$1.1906/30/20154.79%40.62%
GEVA05/06/2015Alexion Pharmaceuticals, Inc. (ALXN)$220.66$211.5006/30/20154.33%36.78%

List of all pending deals:

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

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