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Merger Arbitrage Mondays – July 6, 2015

  • July 6, 2015

Merger activity increased last week with seven new deals announced and nine 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 2015102
Total Number of Deals Not Completed in 20153
Total Number of Pending Deals
Cash Deals43
Stock Deals20
Stock & Cash Deals14
Special Conditions9
Total Number of Pending Deals86
Total Deal Size$894.09 billion

New Deals:

  1. The acquisition of Ameriana Bancorp (ASBI) by First Merchants Corporation (FRME) for $68.8 million in an all stock deal. Under the terms of the agreement, shareholders of Ameriana Bancorp will have the right to exchange each Ameriana Bancorp common share held for 0.9037 shares of First Merchants’ common stock.
  2. The acquisition of Towers Watson & Co. (TW) by Willis Group Holdings Public Limited Company (WSH) for $8.7 billion. Under the terms of the agreement, Towers Watson shareholders will receive 2.6490 Willis shares for each Towers Watson share. Towers Watson shareholders will also receive a one-time cash dividend of $4.87 per Towers Watson share pre-closing. Subject to Willis shareholder approval, Willis expects to implement a 2.6490 for one reverse stock split, so that each one Willis share will be converted into 0.3775 Willis Towers Watson shares. If the reverse stock split is approved, Towers Watson shareholders will receive one share of Willis Towers Watson for each Towers Watson share. The merger is not conditioned on Willis shareholder approval of the reverse stock split.
  3. The acquisition of The Chubb Corporation (CB) by ACE Limited (ACE) for $28.3 billion in a cash plus stock deal. Under the terms of the agreement, Chubb shareholders will receive $62.93 per share in cash and 0.6019 shares of ACE stock.
  4. The acquisition of Gramercy Property Trust (GPT) by Chambers Street Properties (CSG) for $2.5 billion in an all stock deal. Under the terms of the agreement, shareholders of Gramercy Property Trusts will receive 3.1898 shares of Chambers Street for each share of Gramercy common stock they own.
  5. The acquisition of Xoom Corporation (XOOM) by PayPal for $890 million or $25.00 per share in cash.
  6. The acquisition of Health Net (HNT) by Centene (CNC) for $6.8 billion in a cash plus stock deal. Under the terms of the agreement, Health Net shareholders would receive 0.622 shares of Centene common stock and $28.25 in cash for each share of Health Net common stock.
  7. The acquisition of Humana (HUM) by Aetna (AET) for $37 billion in a cash plus stock deal. Under the terms of the agreement, Humana stockholders will receive $125.00 in cash and 0.8375 Aetna common shares for each Humana share.

Deal Updates:

  1. On June 29, 2015, AT&T (T) and DIRECTV (DTV) elected to further extend the “Termination Date” of the Merger Agreement for a short period of time to facilitate obtaining final regulatory approval required to close the merger.
  2. On June 29, 2015, Integrated Silicon Solution (ISSI) announced that its shareholders had approved an acquisition by Uphill for $23 per share in cash, or about $730.5 million.

Closed Deals:

  1. The acquisition of Integrys Energy Group (TEG) by Wisconsin Energy (WEC) on June 29, 2015. It took 371 days for this deal to be completed.
  2. The acquisition of Dresser-Rand Group (DRC) by Siemens on June 30, 2015. It took 282 days for this deal to be completed.
  3. The acquisition of Hudson Valley Holding (HVB) by Sterling Bancorp (STL) on June 30, 2015. It took 237 days for this deal to be completed.
  4. The acquisition of MeadWestvaco Corporation (MWV) by Rock-Tenn Company (RKT) on July 1, 2015. It took 156 days for this deal to be completed.
  5. The acquisition of Audience (ADNC) by Knowles Corporation (KN) on July 1, 2015. It took 62 days for this deal to be completed.
  6. The acquisition of Dover Saddlery (DOVR) by Webster Capital on July 1, 2015. It took 78 days for this deal to be completed.
  7. The acquisition of Heritage Financial Group (HBOS) by Renasant (RNST) on July 1. 2015. It took 203 days for this deal to be completed.
  8. The acquisition of Valley Financial Corporation (VYFC) by BNC Bancorp (BNCN) on July 1, 2015. It took 226 days for this deal to be completed.
  9. The acquisition of iGATE Corporation (IGTE) by Capgemini on July 2, 2015. It took 66 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

WPZ05/13/2015Williams Companies, Inc. (WMB)$64.22$47.8109/30/201534.33%145.71%
SFXE05/26/2015an affiliate of Robert F.X. Sillerman, the Company’s Chairman and Chief Executive Officer (N/A)$5.25$4.2612/31/201523.24%47.65%
HUM07/03/2015Aetna Inc. (AET)$230.10$187.5012/31/201622.72%15.24%
ODP02/04/2015Staples, Inc. (SPLS)$10.65$8.8512/31/201520.37%41.76%
MEA06/16/2015Total Merchant Limited (N/A)$0.60$0.5008/31/201520.00%130.36%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.6312/31/201616.53%11.09%
OVTI04/30/2015Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. (N/A)$29.75$25.7104/30/201615.71%19.18%
EROC05/21/2015Vanguard Natural Resources, LLC (VNR)$2.78$2.4509/30/201513.57%57.58%
HE12/03/2014NextEra Energy, Inc. (NEE)$33.50$30.1612/31/201511.07%22.71%
BHI11/16/2014Halliburton Company (HAL)$65.94$60.3512/31/20159.26%18.99%

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

+WPZ05/13/2015Williams Companies, Inc. (WMB)All Stock$13.8 billion$64.22$47.811,862,09109/30/201534.33%145.71%
+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$4.26877,14112/31/201523.24%47.65%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$230.10$187.503,720,36912/31/201622.72%15.24%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$10.65$8.8514,169,26912/31/201520.37%41.76%
+MEA06/16/2015Total Merchant Limited (N/A)All Cash$87 million$0.60$0.50109,80608/31/201520.00%130.36%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.6360,47712/31/201616.53%11.09%
+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$25.71852,21304/30/201615.71%19.18%
+EROC05/21/2015Vanguard Natural Resources, LLC (VNR)All Stock$614 million$2.78$2.45345,39509/30/201513.57%57.58%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$30.16490,13312/31/201511.07%22.71%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$65.94$60.352,565,07212/31/20159.26%18.99%
+LRE04/20/2015Vanguard Natural Resources, LLC (VNR)All Stock$539 million$8.27$7.69124,75409/30/20157.57%32.12%
+BRLI06/04/2015Opko Health, Inc. (OPK)All Stock$1.47 billion$44.69$41.73881,59712/31/20157.09%14.53%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$192.93$180.881,842,29212/31/20156.66%13.66%
+OWW02/12/2015Expedia Inc. (EXPE)All Cash$1.6 billion$12.00$11.312,894,49606/30/20156.10%0.00%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.58$10.002,113,20510/31/20155.80%18.10%
+PMFG05/04/2015CECO Environmental Corp. (CECE)Special Conditions$150 million$6.85$6.5075,65809/30/20155.38%22.85%
+ALTR06/01/2015Intel Corporation (INTC)All Cash$16.7 billion$54.00$51.342,914,99803/31/20165.18%7.03%
+GAME04/03/2015Capitalhold Limited and Capitalcorp Limited (N/A)All Cash$1.9 billion$7.10$6.79534,30512/31/20154.57%9.36%
+ASBI06/29/2015First Merchants Corporation (FRME)All Stock$68.8 million$22.47$21.4924,26212/31/20154.54%9.31%
+ONFC02/24/2015Community Bank System Inc. (CBU)All Stock$142 million$21.35$20.433,99707/31/20154.51%65.82%
+GOMO06/08/2015Sunflower Parent Limited (N/A)All CashN/A$4.90$4.7069,54512/31/20154.26%8.73%
+BRCM05/28/2015Avago Technologies Limited (AVGO)Special Conditions$37 billion$54.50$52.285,270,39803/31/20164.25%5.76%
+MCGC04/29/2015PennantPark Floating Rate Capital (PFLT)Special Conditions$175 million$4.75$4.56229,95909/30/20154.17%17.68%
+CMGE06/09/2015Pegasus Investment Holdings Limited (N/A)All CashN/A$22.00$21.12368,24712/31/20154.17%8.54%
+HNT07/02/2015Centene Corp. (CNC)Cash Plus Stock$6.8 billion$74.55$71.5711,404,54503/31/20164.17%5.65%
+OCR05/21/2015CVS Health Corporation (CVS)All Cash$12.7 billion$98.00$94.291,764,18312/31/20153.93%8.07%
+QLTY05/06/2015funds advised by Apax Partners (N/A)All Cash$800 million$16.00$15.44339,70509/30/20153.63%15.39%
+TSRE05/11/2015Independence Realty Trust, Inc. (IRT)Cash Plus StockN/A$6.92$6.684,99609/30/20153.56%15.12%
+ALU04/15/2015Nokia Corporation (NOK)All Stock$16.6 billion$3.70$3.583,205,22106/30/20163.39%3.44%
+NVSL06/04/2015Liberty Bank (N/A)All Cash$78 million$11.00$10.6433,29412/31/20153.38%6.94%
+CB07/01/2015ACE Limited (ACE)Cash Plus Stock$28.3 billion$125.39$121.476,224,97003/31/20163.23%4.38%
+PLMT04/22/2015United Community Banks, Inc. (UCBI)All Stock$240.5 million$20.36$19.7528,70912/31/20153.09%6.34%
+HME06/22/2015an affiliate of Lone Star Funds (N/A)All Cash$7.6 billion$75.23$73.261,498,84512/31/20152.69%5.51%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$53.94171,63612/31/20152.65%5.44%
+GTI05/18/2015affiliate of Brookfield Asset Management Inc. (N/A)All Cash$546 million$5.05$4.937,011,08207/31/20152.43%35.54%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$92.73$90.53438,13312/31/20152.43%4.98%
+SQBK03/02/2015PacWest Bancorp (PACW)All Stock$849 million$27.78$27.1439,54712/31/20152.35%4.82%
+CMLP05/06/2015Crestwood Equity Partners LP (CEQP)All Stock$7.5 billion$11.58$11.36401,12509/30/20151.91%8.13%
+LMNS06/18/2015XIO Group (N/A)All Cash$510 million$14.00$13.74167,60409/30/20151.89%8.03%
+FSL03/02/2015NXP Semiconductors NV (NXPI)Cash Plus Stock$16.7 billion$40.80$40.061,627,40212/31/20151.84%3.78%
+PLL05/13/2015Danaher Corp. (DHR)All Cash$13.8 billion$127.20$124.96755,30712/31/20151.79%3.68%
+LABC06/18/2015Home Bancorp, Inc (HBCP)All Cash$74.5 millon$24.25$23.8591712/31/20151.68%3.44%
+OMG06/01/2015Apollo Global Management, LLC (APO)All CashN/A$34.00$33.46517,10712/31/20151.61%3.31%
+CYNI05/04/2015Ciena Corporation (CIEN)All Stock$400 million$5.39$5.311,225,42709/30/20151.58%6.71%
+GPT07/01/2015Chambers Street Properties (CSG)All Stock$2.5 billion$22.90$22.552,709,80612/31/20151.56%3.21%
+HCC06/10/2015Tokio Marine Holdings, Inc. (N/A)All Cash$7.5 billion$78.00$76.99677,53812/31/20151.31%2.69%
+HSP02/05/2015Pfizer Inc. (PFE)All Cash$17 billion$90.00$88.951,085,08612/31/20151.18%2.42%
+LNBB12/15/2014Northwest Bancshares, Inc. (NWBI)Special Conditions$183.3 million$18.70$18.518,33708/14/20151.03%9.61%
+FRS05/22/2015an affiliate of NRD Partners I, L.P. (N/A)All Cash$175 million$34.00$33.673,63009/30/20150.98%4.16%
+PPO02/23/2015Asahi Kasei Corporation (AHKSY)All Cash$3.2 billion$60.50$59.95597,68609/30/20150.92%3.89%
+TRAK06/15/2015Cox Automotive, Inc. (N/A)All Cash$4 billion$63.25$62.752,276,80209/30/20150.80%3.38%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$27.041,006,67809/30/20150.78%3.30%
+DTV05/18/2014AT&T, Inc. (T)Special Conditions$48.5 billion$95.00$94.302,968,53508/15/20150.74%6.77%
+STRN06/22/2015affiliate of Hach Company (N/A)All Cash$39 million$8.50$8.4457,22109/30/20150.71%3.02%
+SUSQ11/12/2014BB&T Corporation (BBT)Cash Plus Stock$2.5 billion$14.27$14.17821,14009/30/20150.68%2.88%
+ANN05/18/2015Ascena Retail Group Inc. (ASNA)Cash Plus Stock$2.15 billion$48.56$48.24280,62612/31/20150.66%1.36%
+EXL04/10/2015Blackstone Property Partners L.P. (BX)All Cash$2 billion$15.85$15.751,556,99912/31/20150.63%1.30%
+INFA04/07/2015Permira funds and Canada Pension Plan Investment Board (N/A)All Cash$5.3 billion$48.75$48.461,279,23409/30/20150.60%2.54%
+CTRX03/30/2015OptumRx (N/A)All Cash$12.8 billion$61.50$61.151,777,17212/31/20150.57%1.17%
+CKSW04/30/2015private funds managed by Francisco Partners Management L.P. (N/A)All Cash$438 million$12.65$12.58124,23807/31/20150.56%8.12%
+MCRL05/07/2015Microchip Technology Inc. (MCHP)Special Conditions$839 million$14.00$13.94486,00208/15/20150.43%3.93%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$139.48735,53206/30/20150.37%0.00%
+AEC04/22/2015Brookfield Asset Management Inc. (BAM)All Cash$2.5 billion$28.75$28.66314,56812/31/20150.31%0.64%
+SIBC12/30/2014First NBC Bank Holding Company (NBCB)All Cash$49 million$21.25$21.2010706/30/20150.24%0.00%
+GKNT06/02/2015GameStop Corp. (GME)All Cash$140 million$20.00$19.9614,85808/02/20150.20%2.71%
+RALY05/27/2015CA, Inc. (CA)All Cash$480 million$19.50$19.47135,08509/30/20150.15%0.65%
+MIG12/30/2014Fosun International Limited (N/A)All Cash$433 million$8.65$8.64330,32712/31/20150.12%0.24%
+ROSE05/11/2015Noble Energy, Inc. (NBL)All Stock$2.1 billion$22.23$22.21797,34809/30/20150.10%0.44%
+KYTH06/17/2015Allergan plc (AGN)All Cash$2.1 billion$75.00$74.93534,86103/31/20160.09%0.13%
+QEPM04/06/2015Tesoro Logistics LP (TLLP)All StockN/A$17.64$17.63114,49612/31/20150.08%0.17%
+TW06/30/2015Willis Group Holdings Public Limited Company (WSH)Cash Plus Stock$8.7 billion$129.03$128.931,240,75612/31/20150.08%0.16%
+ADVS02/02/2015SS&C Technologies Holdings, Inc. (SSNC)All Cash$2.7 billion$44.25$44.23321,75109/30/20150.05%0.19%
+MRH03/31/2015Endurance Specialty Holdings Ltd. (ENH)Cash Plus Stock$1.83 billion$41.23$41.22203,20609/30/20150.03%0.11%
+MERU05/27/2015Fortinet Inc. (FTNT)All Cash$44 million$1.63$1.63102,63109/30/20150.00%0.00%
+RTI03/09/2015Alcoa Inc. (AA)All Stock$1.5 billion$31.43$31.45847,20308/15/2015-0.06%-0.59%
+XOOM07/01/2015PayPal, Inc. (N/A)All Cash$890 million$25.00$25.0510,512,99612/31/2015-0.20%-0.41%
+WMGI10/27/2014Tornier N.V. (TRNX)All Stock$1.72 billion$25.67$26.08286,46509/30/2015-1.57%-6.68%
+BBNK03/09/2015Western Alliance Bancorporation (WAL)Cash Plus Stock$425 million$29.31$29.80N/A12/31/2015-1.65%-3.38%
+MSO06/22/2015Sequential Brands Group, Inc. (SQBG)Special Conditions$353 million$6.15$6.31285,07412/31/2015-2.54%-5.20%
+FSGI03/25/2015Atlantic Capital Bancshares, Inc. (N/A)All Cash$160 million$2.35$2.4312,70110/31/2015-3.29%-10.27%
+BALT04/08/2015Genco Shipping & Trading Limited (GSKNF)All StockN/A$1.57$1.63296,36109/30/2015-3.93%-16.66%
+ISSI06/11/2015Uphill Investment Co (N/A)All CashN/A$21.00$22.111,095,75109/30/2015-5.02%-21.31%
+FDO07/28/2014Dollar Tree, Inc. (DLTR)Special Conditions$9.2 billion$74.50$79.352,216,01007/02/2015-6.11%557.73%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.14$6.5758,01703/31/2015-37.04%139.36%
+ALLB03/03/2015WSFS Financial Corp. (WSFS)All Stock$92 million$7.95$22.892,02612/31/2015-65.28%-133.85%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$N/AN/A08/15/20150.00%0.00%

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