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Merger Arbitrage Mondays – October 19, 2015

  • October 18, 2015

Merger activity decreased last week with four new deals announced and five 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 2015165
Total Number of Deals Not Completed in 20155
Total Number of Pending Deals
Cash Deals51
Stock Deals11
Stock & Cash Deals14
Special Conditions8
Total Number of Pending Deals84
Total Deal Size$1189.37 billion

New Deals:

  1. The acquisition of NewBridge Bancorp (NBBC) by Yadkin Financial Corporation (YDKN) for $456 million in an all stock deal. Under the terms of the agreement, shareholders of NewBridge Bancorp will receive 0.50 shares of Yadkin’s common stock for each share of NewBridge.
  2. The acquisition of FX Energy (FXEN) by ORLEN Upstream for $119 million or $1.15 per share in cash.
  3. The acquisition of Wausau Paper (WPP) by SCA for $513 million or $10.25 per share in cash.
  4. The acquisition of Campus Crest Communities (CCG) by affiliates of Harrison Street Real Estate Capital, LLC for $1.9 billion. Under the terms of the agreement, the final merger consideration will be determined following the closing of the Montreal Sale, currently expected to occur before October 30, 2015, pursuant to a sale agreement with the Company’s joint venture partner (the “Montreal Sale Agreement”).  Assuming the Montreal Sale is consummated on the terms and conditions set forth in the Montreal Sale Agreement, the total per share consideration to be received by Campus Crest shareholders is estimated to be $7.03 per share, consisting of $6.90 per share in cash (the “Cash Consideration”), plus a pro-rata portion of the net proceeds from the Montreal Sale (the “Contingent Consideration”), currently estimated to be $0.13 per share based on current exchange rates. If the Montreal Sale does not occur prior to the closing of the merger with Harrison Street, the merger agreement provides for the creation of a non-transferrable contingent value right (“CVR”) whereby shareholders will receive approximately $6.23 per share in cash at the closing of the merger (based upon current exchange rates) and one CVR per share.

Deal Updates:

  1. On October 13, 2015, Naugatuck Valley Financial Corporation (NVSL) announced that its shareholders approved the Company’s pending merger with Liberty Bank at a special meeting of shareholders held on October 8, 2015. The merger is expected to close in the first quarter of 2016 subject to the satisfaction of other customary closing conditions.

Closed Deals:

  1. The acquisition of Lumenis (LMNS) by XIO Group on October 12, 2015. It took 116 days for this deal to be completed.
  2. The acquisition of Alliance Bancorp Inc of Pennsylvania (ALLB) by WSFS Financial (WSFS) on October 13, 2015. It took 224 days for this deal to be completed.
  3. The acquisition of Blyth (BTH) by The Carlyle Group (CG) on October 14, 2015. It took 44 days for this deal to be completed.
  4. The acquisition of Synergetics USA (SURG) by Valeant Pharmaceuticals International (VRX) on October 15, 2015.
  5. The acquisition of Merge Healthcare Incorporated (MRGE) by International Business Machines Corporation (IBM) on October 16, 2015. It took 71 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)$10.00$7.1312/31/201540.20%200.98%
VSLR07/20/2015SunEdison, Inc. (SUNE)$16.50$12.5612/31/201531.37%156.85%
CI07/24/2015Anthem, Inc. (ANTM)$179.16$140.7412/31/201627.30%22.70%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.3712/31/201625.52%21.22%
CCG10/16/2015affiliates of Harrison Street Real Estate Capital, LLC (N/A)$7.03$5.6803/31/201623.77%52.90%
HUM07/03/2015Aetna Inc. (AET)$219.63$184.2012/31/201619.23%15.99%
MDP09/08/2015Media General, Inc. (MEG)$51.53$44.7406/30/201615.18%21.72%
YDLE08/10/2015Envestnet, Inc. (ENV)$18.88$16.5603/31/201614.01%31.18%
BHI11/16/2014Halliburton Company (HAL)$61.35$53.8312/31/201513.96%69.82%
HE12/03/2014NextEra Energy, Inc. (NEE)$33.50$29.6312/31/201513.06%65.31%

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$10.00$7.134,080,69212/31/201540.20%200.98%
+VSLR07/20/2015SunEdison, Inc. (SUNE)Special Conditions$2.2 billion$16.50$12.56230,66812/31/201531.37%156.85%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$179.16$140.741,776,92912/31/201627.30%22.70%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.3740,97912/31/201625.52%21.22%
+CCG10/16/2015affiliates of Harrison Street Real Estate Capital, LLC (N/A)All Cash$1.9 billion$7.03$5.68237,90403/31/201623.77%52.90%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$219.63$184.201,104,16312/31/201619.23%15.99%
+MDP09/08/2015Media General, Inc. (MEG)Special Conditions$3.1 billion$51.53$44.74170,33006/30/201615.18%21.72%
+YDLE08/10/2015Envestnet, Inc. (ENV)Special Conditions$590 million$18.88$16.56449,49103/31/201614.01%31.18%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$61.35$53.835,420,60012/31/201513.96%69.82%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$29.63179,74812/31/201513.06%65.31%
+ATML09/20/2015Dialog Semiconductor Plc (DLGNF)Cash Plus Stock$4.4 billion$9.77$8.686,067,27403/31/201612.60%28.05%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$33.3817,72501/31/201612.34%43.32%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$7.37$6.7155,47512/31/20159.78%48.91%
+TLR09/15/2015Waterton Precious Metals Fund II Cayman, LP (N/A)All CashN/A$0.58$0.5332,94012/31/20159.43%47.17%
+NPBC08/17/2015BB&T Corporation (BBT)Special Conditions$1.8 billion$13.00$11.991,212,53206/30/20168.42%12.06%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$201.29$188.711,103,84012/31/20156.67%33.34%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$61.89535,96812/31/20166.64%5.52%
+VIMC09/15/2015Vimicro China (N/A)All CashN/A$13.50$12.72269,03512/31/20156.13%30.66%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$33.012,449,54806/30/20165.73%8.20%
+RNF08/10/2015CVR Partners, LP (UAN)Cash Plus Stock$840 million$13.19$12.5156,80604/30/20165.42%10.20%
+BRCM05/28/2015Avago Technologies Limited (AVGO)Special Conditions$37 billion$54.50$51.761,713,49503/31/20165.29%11.78%
+PLNR08/12/2015Leyard Optoelectronic Co., Ltd. (N/A)All Cash$156.8 million$6.58$6.25186,78112/31/20155.28%26.40%
+ALTV09/03/2015Momentum Telecom, Inc. (N/A)All Cash$28.7 million$4.70$4.493,56312/31/20154.68%23.39%
+ONFC02/24/2015Community Bank System Inc. (CBU)All Stock$142 million$21.84$20.924,21810/31/20154.40%133.95%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$53.28253,77412/31/20153.92%19.61%
+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$28.68767,93504/30/20163.73%7.02%
+CAM08/26/2015Schlumberger Limited (SLB)Cash Plus Stock$14.8 billion$67.79$65.413,804,40103/31/20163.64%8.10%
+NBBC10/13/2015Yadkin Financial Corporation (YDKN)All Stock$456 million$11.01$10.62517,25706/30/20163.63%5.19%
+GPT07/01/2015Chambers Street Properties (CSG)All Stock$2.5 billion$22.20$21.481,151,73112/31/20153.36%16.78%
+METR08/04/2015F.N.B. Corporation (FNB)All Stock$474 million$31.04$30.0438,45903/31/20163.33%7.40%
+GOMO06/08/2015Sunflower Parent Limited (N/A)All CashN/A$4.90$4.7670,23712/31/20152.94%14.71%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.481,542,15209/30/20152.91%0.00%
+WMB09/28/2015Energy Transfer Equity, L.P. (ETE)Special Conditions$37.7 billion$43.50$42.285,049,94706/30/20162.89%4.13%
+ALU04/15/2015Nokia Corporation (NOK)All Stock$16.6 billion$3.86$3.762,977,26406/30/20162.69%3.84%
+SLH09/13/2015an affiliate of Vista Equity Partners (N/A)All Cash$6.5 billion$55.85$54.43640,45403/31/20162.61%5.81%
+PMCS10/05/2015Skyworks Solutions Inc. (SWKS)All Cash$2 billion$10.50$10.246,913,41706/30/20162.54%3.63%
+ALTR06/01/2015Intel Corporation (INTC)All Cash$16.7 billion$54.00$52.731,602,61503/31/20162.41%5.36%
+SYA08/11/2015Sumitomo Life Insurance Company (N/A)All Cash$3.8 billion$32.50$31.74322,56105/15/20162.39%4.18%
+MWE07/13/2015MPLX LP (MPLX)Cash Plus Stock$20 billion$46.73$45.66842,62612/31/20152.34%11.72%
+PGI09/10/2015Siris Capital Group, LLC (N/A)All Cash$1 billion$14.00$13.68479,37212/31/20152.34%11.70%
+ISSI06/11/2015Uphill Investment Co (N/A)All CashN/A$23.00$22.48207,71212/31/20152.31%11.57%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$26.941,717,23606/30/20162.26%3.24%
+GAME04/03/2015Capitalhold Limited and Capitalcorp Limited (N/A)All Cash$1.9 billion$7.10$6.95220,39812/31/20152.16%10.79%
+BEE09/08/2015Blackstone Real Estate Partners VIII L.P. (N/A)All Cash$6 billion$14.25$13.9511,157,39203/31/20162.15%4.79%
+EZCH09/30/2015Mellanox Technologies, Ltd. (MLNX)All Cash$620 million$25.50$25.01151,33003/31/20161.96%4.36%
+HNT07/02/2015Centene Corp. (CNC)Cash Plus Stock$6.8 billion$64.39$63.18706,06003/31/20161.91%4.26%
+BAMM07/13/2015Anderson Family (N/A)All Cash$21 million$3.25$3.1910,27512/31/20151.88%9.40%
+FXEN10/13/2015ORLEN Upstream (N/A)All Cash119 million$1.15$1.13316,37212/31/20151.77%8.85%
+AVOL09/03/2015Bohai Leasing Co., Ltd. (N/A)All Cash$7.6 billion$31.00$30.4864,11803/31/20161.71%3.80%
+CYT07/29/2015Solvay (N/A)All Cash$6.4 billion$75.25$74.01609,24512/31/20151.68%8.38%
+PCP08/10/2015Berkshire Hathaway Inc. (BRK-A)All Cash$37.2 billion$235.00$231.38675,15103/31/20161.56%3.48%
+BMR10/08/2015Blackstone Real Estate Partners VIII (BX)All Cash$8 billion$23.75$23.406,341,20003/31/20161.50%3.33%
+MSO06/22/2015Sequential Brands Group, Inc. (SQBG)Special Conditions$353 million$6.15$6.06288,65212/31/20151.49%7.43%
+CB07/01/2015ACE Limited (ACE)Cash Plus Stock$28.3 billion$128.51$126.811,171,18603/31/20161.34%2.98%
+ASBI06/29/2015First Merchants Corporation (FRME)All Stock$68.8 million$23.53$23.2344212/31/20151.30%6.51%
+UTIW10/09/2015DSV (N/A)All Cash$1.35 billion$7.10$7.014,044,60503/31/20161.28%2.86%
+PRE08/03/2015EXOR S.p.A. (N/A)All Cash$6.9 billion$140.50$138.80203,35603/31/20161.22%2.73%
+NVSL06/04/2015Liberty Bank (N/A)All Cash$78 million$11.00$10.871,67003/31/20161.20%2.66%
+STNR08/21/2015affiliate of Catterton (N/A)All Cash$834 million$65.00$64.2641,04203/31/20161.15%2.56%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.15124,91603/31/20161.09%2.43%
+DAEG10/08/2015Open Text Corporation (OTEX)All Cash$13.5 million$0.82$0.81216,73812/31/20150.99%4.93%
+IPCM08/04/2015Team Health Holdings, Inc. (TMH)All Cash$1.6 billion$80.25$79.62480,08712/31/20150.79%3.96%
+WPP10/13/2015SCA (N/A)All Cash$513 million$10.25$10.18614,68101/31/20160.69%2.41%
+FSL03/02/2015NXP Semiconductors NV (NXPI)Cash Plus Stock$16.7 billion$39.07$38.82485,58412/31/20150.65%3.26%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$90.21$89.67406,71912/31/20150.60%2.99%
+HCC06/10/2015Tokio Marine Holdings, Inc. (N/A)All Cash$7.5 billion$78.00$77.62464,75812/31/20150.49%2.45%
+SIBC12/30/2014First NBC Bank Holding Company (FNBC)All Cash$49 million$21.25$21.157,20212/31/20150.47%2.36%
+OMG06/01/2015Apollo Global Management, LLC (APO)All CashN/A$34.00$33.88322,53212/31/20150.35%1.77%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$139.60693,51611/30/20150.29%2.49%
+SFG07/23/2015Meiji Yasuda Life Insurance Company (N/A)All Cash$5 billion$115.00$114.68207,80803/31/20160.28%0.62%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$9.92$9.904,900,49110/31/20150.21%6.32%
+XOOM07/01/2015PayPal, Inc. (N/A)All Cash$890 million$25.00$24.96129,90712/31/20150.16%0.80%
+CNW09/09/2015XPO Logistics, Inc. (XPO)All Cash$3 billion$47.60$47.532,502,32810/31/20150.15%4.48%
+REMY07/13/2015BorgWarner Inc. (BWA)All Cash$1.2 billion$29.50$29.46181,27812/31/20150.14%0.68%
+ADEP09/16/2015OMRON Corporation (N/A)All Cash$200 million$13.00$12.9956,17010/23/20150.08%7.02%
+MM09/03/2015AOL (N/A)All Cash$238 million$1.75$1.751,526,89510/31/20150.00%0.00%
+ENVI09/10/2015Ericsson (N/A)All Cash$125 million$4.10$4.10108,50612/31/20150.00%0.00%
+JMG10/07/2015Gannett Co., Inc. (GCI)All Cash$280 million$12.00$12.03285,86503/31/2016-0.25%-0.56%
+SIRO09/15/2015DENTSPLY International Inc. (XRAY)All Stock$5.51 billion$102.79$103.28539,48603/31/2016-0.47%-1.05%
+TW06/30/2015Willis Group Holdings Public Limited Company (WSH)Cash Plus Stock$8.7 billion$116.58$119.86271,39012/31/2015-2.74%-13.69%
+PSEM09/03/2015Diodes Incorporated (DIOD)All Cash$400 million$17.00$17.55366,31312/31/2015-3.13%-15.67%
+FSGI03/25/2015Atlantic Capital Bancshares, Inc. (N/A)All Cash$160 million$2.35$2.5065,77010/31/2015-6.00%-182.50%
+RENT09/29/2015comScore, Inc. (SCOR)All Stock$732 million$51.23$54.79176,90101/31/2016-6.49%-22.79%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$5.35$7.40104,09803/31/2015-27.77%50.17%

Voluntary Disclosure: I hold a long position in CCG.

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