Merger Arbitrage Mondays – May 4, 2015

  • May 3, 2015

Merger activity increased last week with five new deals announced and five 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 201569
Total Number of Deals Not Completed in 20151
Total Number of Pending Deals
Cash Deals34
Stock Deals17
Stock & Cash Deals12
Special Conditions7
Total Number of Pending Deals70
Total Deal Size$581.55 billion

New Deals:

  1. The acquisition of iGATE Corporation (IGTE) by Capgemini for $4 billion or $48.00 per share in cash.
  2. The acquisition of MCG Capital Corporation (MCGC) by PennantPark Floating Rate Capital (PFLT) for $175 million. Under the terms of the transaction, MCGC stockholders will receive $4.521 in PFLT shares for each MCGC share, resulting in approximately 11.8 million PFLT shares expected to be issued in exchange for the approximately 36.9 million MCGC shares expected to be outstanding at closing.  Additionally, each MCGC shareholder will receive $0.226 per share in cash from PennantPark Investment Advisers, LLC. To the extent PFLT’s 10-day volume-weighted average price is less than PFLT’s NAV, the Adviser will pay up to an additional $0.25 per PFLT share issued in this transaction.
  3. The acquisition of OmniVision Technologies (OVTI) by Hua Capital Management , CITIC Capital Holdings Limited , and GoldStone Investment (collectively, the “Consortium”) for $1.9 billion or $29.75 per share in cash.
  4. The acquisition of ClickSoftware Technologies (CKSW) by private funds managed by Francisco Partners Management for $438 million or $12.65 per share in cash.
  5. The acquisition of Audience (ADNC) by Knowles Corporation (KN) for $85 million. Under the terms of the agreement, Knowles will offer to acquire Audience’s common stock for $5.00 per share, consisting of $2.50 in cash and $2.50 in Knowles common stock. The stock portion will be subject to a collar such that Audience stockholders will receive 0.107 of a share of Knowles common stock for each share of Audience common stock if the average Knowles trading price during a specified period preceding closing is equal to or greater than $23.35 or 0.138 of a share of Knowles common stock for each share of Audience common stock if the average Knowles share trading price is less than or equal to $18.16. If the average trading price of Knowles stock during this period is between $18.16 and $23.35, Audience stockholders will receive between 0.107 and 0.138 of a share of Knowles common stock for each share of Audience common stock.

Closed Deals:

  1. The acquisition of CMS Bancorp (CMSB) by Putnam County Savings Bank on April 28, 2015. It took 215 days for this deal to be completed.
  2. The acquisition of Vitesse Semiconductor (VTSS) by Microsemi Corporation (MSCC) on April 28, 2015. It took 51 days for this deal to be completed
  3. The acquisition of Mavenir Systems (MVNR) by Mitel Networks Corporation (MITL) on April 29, 2015. It took 58 days for this deal to be completed.
  4. The acquisition of Entropic Communications (ENTR) by MaxLinear (MXL) on April 30, 2015. It took 86 days for this deal to be completed.
  5. The  acquisition of Regency Energy Partners (RGP) by Energy Transfer Partners (ETP) on April 30, 2015. It tool 94 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$9.3212/31/201516.55%25.06%
API02/02/2015Luna Innovations Incorporated (LUNA)$0.44$0.4006/30/20159.65%61.78%
LRE04/20/2015Vanguard Natural Resources, LLC (VNR)$9.14$8.3609/30/20159.28%22.72%
URZ01/05/2015Energy Fuels Inc. (UUUU)$1.26$1.1706/30/20158.10%51.88%
HCBK08/27/2012M&T Bank Corporation (MTB)$10.02$9.2810/31/20158.02%16.26%
OVTI04/30/2015Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd.  (collectively, the Consortium) (N/A)$29.75$27.5612/31/20167.95%4.78%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6512/31/20147.88%-23.19%
BHI11/16/2014Halliburton Company (HAL)$74.00$69.0212/31/20157.22%10.93%
HE12/03/2014NextEra Energy, Inc. (NEE)$33.50$31.4412/31/20156.55%9.92%
DTV05/18/2014AT&T, Inc. (T)$95.00$90.4005/31/20155.09%68.79%

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$9.324,715,79712/31/201516.55%25.06%
+API02/02/2015Luna Innovations Incorporated (LUNA)All StockN/A$0.44$0.4059,41006/30/20159.65%61.78%
+LRE04/20/2015Vanguard Natural Resources, LLC (VNR)All Stock$539 million$9.14$8.36168,96009/30/20159.28%22.72%
+URZ01/05/2015Energy Fuels Inc. (UUUU)All Stock$150 million$1.26$1.17188,82906/30/20158.10%51.88%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.02$9.282,868,94410/31/20158.02%16.26%
+OVTI04/30/2015Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. (collectively, the Consortium) (N/A)All Cash$1.9 billion$29.75$27.561,240,72712/31/20167.95%4.78%
+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$74.00$69.022,464,27312/31/20157.22%10.93%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$31.44392,80712/31/20156.55%9.92%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$90.401,842,52305/31/20155.09%68.79%
+ALU04/15/2015Nokia Corporation (NOK)All Stock$16.6 billion$3.58$3.418,062,95606/30/20164.84%4.18%
+SQBK03/02/2015PacWest Bancorp (PACW)All Stock$849 million$26.82$25.6062,90012/31/20154.76%7.21%
+MCGC04/29/2015PennantPark Floating Rate Capital (PFLT)Special Conditions$175 million$4.75$4.54749,86309/30/20154.63%11.33%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.081,642,87309/30/20154.49%10.99%
+WMGI10/27/2014Tornier N.V. (TRNX)All Stock$1.72 billion$25.98$24.911,369,52706/30/20154.29%27.47%
+BALT04/08/2015Genco Shipping & Trading Limited (GSKNF)All StockN/A$1.49$1.43413,37509/30/20154.22%10.35%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$96.68$92.97231,48712/31/20154.00%6.05%
+LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)Special Conditions$183.3 million$18.70$18.026,93006/30/20153.77%24.16%
+ISSI03/12/2015a Chinese consortium of investors led by Summitview Capital (N/A)All CashN/A$19.25$18.55206,40109/30/20153.77%9.24%
+ADNC04/30/2015Knowles Corporation (KN)Special Conditions$85 million$5.00$4.82647,72709/30/20153.73%9.15%
+CTRX03/30/2015OptumRx (N/A)All Cash$12.8 billion$61.50$59.452,186,24512/31/20153.45%5.22%
+GAME04/03/2015Capitalhold Limited and Capitalcorp Limited (N/A)All Cash$1.9 billion$7.10$6.87474,28112/31/20153.35%5.07%
+HSP02/05/2015Pfizer Inc. (PFE)All Cash$17 billion$90.00$87.291,418,53012/31/20153.10%4.70%
+PPO02/23/2015Asahi Kasei Corporation (AHKSY)All Cash$3.2 billion$60.50$58.70758,34609/30/20153.07%7.51%
+INXN03/09/2015Telecity Group plc (TCY.L)All StockN/A$31.57$30.69200,34012/31/20152.86%4.33%
+PCYC03/04/2015AbbVie Inc. (ABBV)All Cash$21 billion$261.25$254.51758,38206/30/20152.65%16.96%
+LO07/15/2014Reynolds American Inc. (RAI)Cash Plus Stock$27.4 billion$72.06$70.233,315,49506/30/20152.60%16.67%
+OWW02/12/2015Expedia Inc. (EXPE)All Cash$1.6 billion$12.00$11.713,693,47606/30/20152.48%15.86%
+FSL03/02/2015NXP Semiconductors NV (NXPI)Cash Plus Stock$16.7 billion$41.81$40.921,554,04812/31/20152.17%3.29%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$54.29349,89912/31/20151.99%3.01%
+ADVS02/02/2015SS&C Technologies Holdings, Inc. (SSNC)All Cash$2.7 billion$44.25$43.39522,42706/30/20151.98%12.69%
+SUSQ11/12/2014BB&T Corporation (BBT)Cash Plus Stock$2.5 billion$13.78$13.52884,27109/30/20151.93%4.72%
+BBNK03/09/2015Western Alliance Bancorporation (WAL)Cash Plus Stock$425 million$27.53$27.0125,30112/31/20151.91%2.89%
+CKSW04/30/2015private funds managed by Francisco Partners Management L.P. (N/A)All Cash$438 million$12.65$12.431,225,49007/31/20151.77%7.34%
+VIAS09/22/2014TTM Technologies Inc. (TTMI)Cash Plus Stock$927 million$18.03$17.765,86206/30/20151.52%9.73%
+INFA04/07/2015Permira funds and Canada Pension Plan Investment Board (N/A)All Cash$5.3 billion$48.75$48.101,132,38309/30/20151.35%3.31%
+MIG12/30/2014Fosun International Limited (N/A)All Cash$433 million$8.65$8.5489,76512/31/20151.29%1.95%
+TEG06/23/2014Wisconsin Energy Corp. (WEC)Cash Plus Stock$9.1 billion$74.53$73.63199,10306/30/20151.22%7.82%
+RTI03/09/2015Alcoa Inc. (AA)All Stock$1.5 billion$40.07$39.621,091,24108/15/20151.13%3.99%
+XLS02/06/2015Harris Corporation (HRS)Cash Plus Stock$4.56 billion$24.87$24.621,373,71406/30/20151.02%6.53%
+LTM03/16/2015Leonard Green & Partners and TPG (N/A)All Cash$4 billion$72.10$71.40827,58609/30/20150.98%2.40%
+BKYF09/08/2014BB&T Corporation (BBT)Cash Plus Stock$363 million$48.34$47.9324,76503/31/20150.87%0.00%
+MRH03/31/2015Endurance Specialty Holdings Ltd. (ENH)Cash Plus Stock$1.83 billion$38.47$38.14153,13809/30/20150.86%2.12%
+AEC04/22/2015Brookfield Asset Management Inc. (BAM)All Cash$2.5 billion$28.75$28.511,232,20612/31/20150.84%1.27%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$138.94824,86006/30/20150.76%4.89%
+HVB11/05/2014Sterling Bancorp. (STL)All Stock$539 million$24.90$24.7478,86506/30/20150.66%4.20%
+TRW09/15/2014ZF Friedrichshafen AG (“ZF”) (N/A)All Cash$13.5 billion$105.60$105.07868,42406/30/20150.50%3.23%
+IGTE04/27/2015Capgemini (N/A)All Cash$4 billion$48.00$47.801,556,76812/31/20150.42%0.63%
+MWV01/26/2015Rock-Tenn Company (RKT)All Stock$16 billion$49.64$49.451,721,60306/30/20150.38%2.45%
+SIBC12/30/2014First NBC Bank Holding Company (NBCB)All Cash$49 million$21.25$21.1810006/30/20150.33%2.12%
+HBOS12/10/2014Renasant Corp. (RNST)All Stock$258 million$27.22$27.157,75809/30/20150.27%0.66%
+QEPM04/06/2015Tesoro Logistics LP (TLLP)All StockN/A$17.50$17.45242,12712/31/20150.27%0.40%
+PKT04/22/2015private funds managed by Francisco Partners Management, L.P. (N/A)All Cash$240 million$11.50$11.47518,00306/30/20150.26%1.67%
+TLM12/15/2014Repsol S.A. (N/A)All Cash$13 billion$8.00$7.986,575,78006/30/20150.25%1.60%
+ARUN03/02/2015Hewlett-Packard Company (HPQ)All Cash$2.7 billion$24.67$24.611,349,00310/31/20150.24%0.49%
+DRC09/21/2014Siemens (N/A)All Cash$7.6 billion$83.00$82.86335,04306/30/20150.17%1.08%
+ASPX03/30/2015Teva Pharmaceutical Industries Limited (TEVA)All Cash$3.5 billion$101.00$100.95281,89306/30/20150.05%0.32%
+HPTX03/30/2015Horizon Pharma plc (HZNP)All Cash$1.1 billion$46.00$45.99162,59906/30/20150.02%0.14%
+VYFC11/17/2014BNC Bancorp (BNCN)Special Conditions$101.3 million$20.50$20.502,30006/30/20150.00%0.00%
+KFX03/24/2015Lexmark International Inc. (LXK)All Cash$1 billion$11.00$11.00457,79306/30/20150.00%0.00%
+ONFC02/24/2015Community Bank System Inc. (CBU)All Stock$142 million$19.49$19.5080107/31/2015-0.07%-0.30%
+ELX02/25/2015Avago Technologies Limited (AVGO)All Cash$609 million$8.00$8.01851,57111/01/2015-0.12%-0.25%
+ICEL03/30/2015FUJIFILM Holdings Corporation (N/A)All Cash$307 million$16.50$16.5584,17806/30/2015-0.30%-1.93%
+EXL04/10/2015Blackstone Property Partners L.P. (BX)All Cash$2 billion$15.85$15.91689,47012/31/2015-0.38%-0.57%
+NCFT03/30/2015Fortune Brands Home & Security, Inc. (FBHS)All Cash$600 million$25.50$25.66358,70006/30/2015-0.62%-3.99%
+ALLB03/03/2015WSFS Financial Corp. (WSFS)All Stock$92 million$20.95$21.2029,04912/31/2015-1.18%-1.79%
+FSGI03/25/2015Atlantic Capital Bancshares, Inc. (N/A)All Cash$160 million$2.35$2.4076,38410/31/2015-2.08%-4.22%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$6.19$6.4488,75003/31/2015-3.91%41.93%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$78.53371,88803/31/2015-5.13%55.09%
+CRRC02/05/2015R.R. Donnelley & Sons Company (RRD)All Cash$261 million$23.00$24.4316,50206/30/2015-5.85%-37.48%

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