×

Subscribe Today

Get our free articles delivered directly to your email!

Continue reading

Merger Arbitrage Mondays – May 25, 2015

  • May 24, 2015

Merger activity decreased last week with four 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 201579
Total Number of Deals Not Completed in 20151
Total Number of Pending Deals
Cash Deals33
Stock Deals23
Stock & Cash Deals15
Special Conditions9
Total Number of Pending Deals80
Total Deal Size$651.09 billion

New Deals:

  1. The acquisition of GrafTech International (GTI) by affiliate of Brookfield Asset Management for $546 million or $5.05 per share in cash.
  2. The acquisition of ANN (ANN) by Ascena Retail Group (ASNA) for $2.15 billion in a cash plus stock deal. Under the terms of the agreement ANN stockholders will receive $37.34 in cash and 0.68 of a share of Ascena common stock in exchange for each share of ANN common stock.
  3. The acquisition of Omnicare (OCR) by CVS Health Corporation (CVS) for $12.7 billion or $98.00 per share in cash.
  4. The acquisition of Eagle Rock Energy Partners (EROC) by Vanguard Natural Resources (VNR) in an all stock deal. Under the terms of the agreement, shareholders of Eagle Rock Energy Partners will receive 0.185 Vanguard common units per Eagle Rock common unit.

Deal Updates:

  1. On May 19, 2015, HC2 Holdings (HCHC) submitted a revised merger proposal to acquire MCG Capital Corporation (MCGC) for $5.25 per share, consisting of (a) a number of shares of HC2 common stock valued at $4.75 (utilizing a floating exchange ratio subject to a customary 15% symmetrical collar that will result in the issuance of between .37 and .50 of a share of HC2 common stock for each share of MCG common stock), and (b) $0.50 in cash. HC2 has delivered what it believes to be a Superior Offer  to the PennantPark (PFLT) Transaction.

Closed Deals:

  1. The acquisition of Aruba Networks (ARUN) by Hewlett-Packard Company (HPQ) on May 19, 2015. It took 78 days for this deal to be completed.
  2. The acquisition of Kofax Limited (KFX) by Lexmark International (LXK) on May 21, 2015. It took 58 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)$10.79$9.3112/31/201515.95%26.46%
LRE04/20/2015Vanguard Natural Resources, LLC (VNR)$9.13$8.0609/30/201513.28%37.86%
EROC05/21/2015Vanguard Natural Resources, LLC (VNR)$3.07$2.7409/30/201512.08%34.45%
OVTI04/30/2015Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. (N/A)$29.75$27.0504/30/20169.98%10.68%
HE12/03/2014NextEra Energy, Inc. (NEE)$33.50$30.8812/31/20158.48%14.08%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6508/15/20147.88%-10.16%
HCBK08/27/2012M&T Bank Corporation (MTB)$10.35$9.6310/31/20157.47%17.14%
BHI11/16/2014Halliburton Company (HAL)$70.42$65.5312/31/20157.46%12.38%
PMFG05/04/2015CECO Environmental Corp. (CECE)$6.85$6.4909/30/20155.55%15.82%
OWW02/12/2015Expedia Inc. (EXPE)$12.00$11.4706/30/20154.62%46.85%

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$10.79$9.313,319,02712/31/201515.95%26.46%
+LRE04/20/2015Vanguard Natural Resources, LLC (VNR)All Stock$539 million$9.13$8.06121,44509/30/201513.28%37.86%
+EROC05/21/2015Vanguard Natural Resources, LLC (VNR)All Stock$614 million$3.07$2.744,022,10509/30/201512.08%34.45%
+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$27.05317,89404/30/20169.98%10.68%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$30.88258,54712/31/20158.48%14.08%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.65N/A08/15/20147.88%0.00%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.35$9.631,907,73510/31/20157.47%17.14%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$70.42$65.531,518,12012/31/20157.46%12.38%
+PMFG05/04/2015CECO Environmental Corp. (CECE)Special Conditions$150 million$6.85$6.4923,88809/30/20155.55%15.82%
+OWW02/12/2015Expedia Inc. (EXPE)All Cash$1.6 billion$12.00$11.474,226,96706/30/20154.62%46.85%
+GEVA05/06/2015Alexion Pharmaceuticals, Inc. (ALXN)Cash Plus Stock$8.4 billion$228.15$218.11862,03506/30/20154.60%46.69%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$91.571,495,09905/31/20153.75%227.87%
+ALU04/15/2015Nokia Corporation (NOK)All Stock$16.6 billion$3.97$3.843,966,65506/30/20163.41%3.10%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$96.17$93.00297,17012/31/20153.41%5.65%
+CYNI05/04/2015Ciena Corporation (CIEN)All Stock$400 million$5.21$5.04420,32709/30/20153.29%9.38%
+SQBK03/02/2015PacWest Bancorp (PACW)All Stock$849 million$27.26$26.4223,89412/31/20153.19%5.29%
+LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)Special Conditions$183.3 million$18.70$18.188,02706/30/20152.86%29.00%
+CMLP05/06/2015Crestwood Equity Partners LP (CEQP)All Stock$7.5 billion$14.19$13.82457,70809/30/20152.68%7.63%
+ADNC04/30/2015Knowles Corporation (KN)Special Conditions$85 million$5.00$4.87131,17409/30/20152.67%7.61%
+GAME04/03/2015Capitalhold Limited and Capitalcorp Limited (N/A)All Cash$1.9 billion$7.10$6.92425,01612/31/20152.60%4.32%
+URZ01/05/2015Energy Fuels Inc. (UUUU)All Stock$150 million$1.18$1.15186,63606/30/20152.44%24.77%
+TSRE05/11/2015Independence Realty Trust, Inc. (IRT)Cash Plus StockN/A$7.42$7.2759,69809/30/20152.11%6.01%
+PLL05/13/2015Danaher Corp. (DHR)All Cash$13.8 billion$127.20$124.591,728,98112/31/20152.09%3.48%
+CTRX03/30/2015OptumRx (N/A)All Cash$12.8 billion$61.50$60.241,404,03712/31/20152.09%3.47%
+HSP02/05/2015Pfizer Inc. (PFE)All Cash$17 billion$90.00$88.27620,76512/31/20151.96%3.25%
+OCR05/21/2015CVS Health Corporation (CVS)All Cash$12.7 billion$98.00$96.128,216,35712/31/20151.96%3.24%
+FSL03/02/2015NXP Semiconductors NV (NXPI)Cash Plus Stock$16.7 billion$43.99$43.15939,35712/31/20151.94%3.22%
+BBNK03/09/2015Western Alliance Bancorporation (WAL)Cash Plus Stock$425 million$28.10$27.6235,84612/31/20151.75%2.91%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$54.45141,63512/31/20151.69%2.80%
+WPZ05/13/2015Williams Companies, Inc. (WMB)All Stock$13.8 billion$59.08$58.131,773,42709/30/20151.64%4.68%
+MIG12/30/2014Fosun International Limited (N/A)All Cash$433 million$8.65$8.53384,96512/31/20151.41%2.33%
+ANN05/18/2015Ascena Retail Group Inc. (ASNA)Cash Plus Stock$2.15 billion$47.59$46.971,623,61512/31/20151.33%2.21%
+SUSQ11/12/2014BB&T Corporation (BBT)Cash Plus Stock$2.5 billion$14.02$13.85581,55809/30/20151.23%3.52%
+PPO02/23/2015Asahi Kasei Corporation (AHKSY)All Cash$3.2 billion$60.50$59.78853,15509/30/20151.20%3.43%
+MRH03/31/2015Endurance Specialty Holdings Ltd. (ENH)Cash Plus Stock$1.83 billion$39.03$38.58176,47909/30/20151.16%3.30%
+ROSE05/11/2015Noble Energy, Inc. (NBL)All Stock$2.1 billion$23.74$23.471,865,22009/30/20151.15%3.28%
+ADVS02/02/2015SS&C Technologies Holdings, Inc. (SSNC)All Cash$2.7 billion$44.25$43.77587,17509/30/20151.10%3.13%
+QLTY05/06/2015funds advised by Apax Partners (N/A)All Cash$800 million$16.00$15.83150,05209/30/20151.07%3.06%
+IGTE04/27/2015Capgemini (N/A)All Cash$4 billion$48.00$47.49869,52712/31/20151.07%1.78%
+MCGC04/29/2015PennantPark Floating Rate Capital (PFLT)Special Conditions$175 million$4.75$4.70306,47609/30/20151.06%3.03%
+QEPM04/06/2015Tesoro Logistics LP (TLLP)All StockN/A$17.67$17.4916,57012/31/20151.03%1.70%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.981,340,28209/30/20151.00%2.85%
+SIBC12/30/2014First NBC Bank Holding Company (NBCB)All Cash$49 million$21.25$21.095,20006/30/20150.76%7.69%
+ZEP04/08/2015fund managed by New Mountain Capital, L.L.C. (N/A)All Cash$692 million$20.05$19.9079,98309/30/20150.75%2.15%
+CKSW04/30/2015private funds managed by Francisco Partners Management L.P. (N/A)All Cash$438 million$12.65$12.56301,20407/31/20150.72%3.90%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$139.08701,62706/30/20150.66%6.71%
+INFA04/07/2015Permira funds and Canada Pension Plan Investment Board (N/A)All Cash$5.3 billion$48.75$48.44588,92809/30/20150.64%1.82%
+AEC04/22/2015Brookfield Asset Management Inc. (BAM)All Cash$2.5 billion$28.75$28.58520,40112/31/20150.59%0.99%
+MWV01/26/2015Rock-Tenn Company (RKT)All Stock$16 billion$52.03$51.721,518,49706/30/20150.59%6.00%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$72.34$72.013,315,96406/30/20150.46%4.62%
+MCRL05/07/2015Microchip Technology Inc. (MCHP)Special Conditions$839 million$14.00$13.94350,73708/15/20150.43%1.92%
+GTI05/18/2015affiliate of Brookfield Asset Management Inc. (N/A)All Cash$546 million$5.05$5.03761,56507/31/20150.40%2.17%
+PLMT04/22/2015United Community Banks, Inc. (UCBI)All Stock$240.5 million$18.46$18.393,97312/31/20150.38%0.62%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$18.30$18.247,41806/30/20150.32%3.24%
+WMGI10/27/2014Tornier N.V. (TRNX)All Stock$1.72 billion$26.67$26.59477,54806/30/20150.30%3.03%
+LTM03/16/2015Leonard Green & Partners and TPG (N/A)All Cash$4 billion$72.10$71.89246,93609/30/20150.29%0.83%
+HBOS12/10/2014Renasant Corp. (RNST)All Stock$258 million$27.43$27.358,89809/30/20150.28%0.81%
+DOVR04/14/2015Webster Capital (N/A)All CashN/A$8.50$8.482206/30/20150.24%2.39%
+RTI03/09/2015Alcoa Inc. (AA)All Stock$1.5 billion$36.64$36.56345,11608/15/20150.22%0.97%
+BRDR05/06/2015Pitney Bowes (N/A)All Cash$395 million$14.00$13.97144,30606/30/20150.21%2.18%
+ONFC02/24/2015Community Bank System Inc. (CBU)All Stock$142 million$19.87$19.835,52107/31/20150.20%1.07%
+BALT04/08/2015Genco Shipping & Trading Limited (GSKNF)All StockN/A$1.52$1.52525,66809/30/20150.18%0.53%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$49.31$49.2211,81306/30/20150.18%1.78%
+XLS02/06/2015Harris Corporation (HRS)Cash Plus Stock$4.56 billion$24.85$24.823,549,07006/30/20150.13%1.29%
+RVM03/27/2015Hecla Mining Co. (HL)All Stock$20 million$0.52$0.5211,17406/30/20150.13%1.29%
+PKT04/22/2015private funds managed by Francisco Partners Management, L.P. (N/A)All Cash$240 million$11.50$11.49123,09806/30/20150.09%0.88%
+VYFC11/17/2014BNC Bancorp (BNCN)Special Conditions$101.3 million$20.50$20.501,92006/30/20150.00%0.00%
+PCYC03/04/2015AbbVie Inc. (ABBV)All Cash$21 billion$261.25$261.251,948,72406/30/20150.00%0.00%
+HVB11/05/2014Sterling Bancorp. (STL)All Stock$539 million$25.94$25.9446,92606/30/2015-0.00%-0.03%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$73.11$73.14161,52806/30/2015-0.04%-0.45%
+EXL04/10/2015Blackstone Property Partners L.P. (BX)All Cash$2 billion$15.85$15.93762,10112/31/2015-0.50%-0.83%
+AOL05/12/2015Verizon Communications Inc. (VZ)All Cash$4.4 billion$50.00$50.262,266,16306/30/2015-0.52%-5.24%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$84.44252,97606/30/2015-1.71%-17.29%
+FSGI03/25/2015Atlantic Capital Bancshares, Inc. (N/A)All Cash$160 million$2.35$2.4228,10610/31/2015-2.89%-6.64%
+ISSI03/12/2015a Chinese consortium of investors led by Summitview Capital (N/A)All CashN/A$19.25$20.18274,87109/30/2015-4.61%-13.14%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$78.171,252,13405/31/2015-4.69%-285.61%
+CRRC02/05/2015R.R. Donnelley & Sons Company (RRD)All Cash$261 million$23.00$24.6467,63306/30/2015-6.66%-67.48%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$6.63$7.6990,54803/31/2015-13.83%91.76%
+ALLB03/03/2015WSFS Financial Corp. (WSFS)All Stock$92 million$7.30$21.5064912/31/2015-66.05%-109.58%
+INXN03/09/2015Telecity Group plc (TCY.L)All StockN/A$0.04$29.72282,98012/31/2015-99.88%-165.71%

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria