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Merger Arbitrage Mondays – October 26, 2015

  • October 25, 2015

Merger activity decreased last week with three new deals announced and two 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 2015167
Total Number of Deals Not Completed in 20155
Total Number of Pending Deals
Cash Deals50
Stock Deals11
Stock & Cash Deals15
Special Conditions9
Total Number of Pending Deals85
Total Deal Size$1223.47 billion

New Deals:

  1. The acquisition of SanDisk (SNDK) by Western Digital Corporation (WDC) for $19 billion. Under the terms of the agreement, if the previously announced investment in Western Digital by Unisplendour Corporation Limited closes prior to this acquisition, Western Digital will pay $85.10 per share in cash and 0.0176 shares of Western Digital common stock per share of SanDisk common stock; and if the Unisplendour transaction has not closed or has been terminated, $67.50 in cash and 0.2387 shares of Western Digital common stock per share of SanDisk common stock.
  2. The acquisition of KLA-Tencor Corporation (KLAC) by Lam Research Corporation (LRCX) for $10.6 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of KLA-Tencor will be entitled to elect to receive for the shares of KLA-Tencor stock they hold the economic equivalent of $32.00 in cash and 0.5 of a share of Lam Research common stock, in all-cash, all-stock, or mixed consideration.
  3. The acquisition of SolarWinds (SWI) by Silver Lake Partners and Thoma Bravo for $4.5 billion or $60.10 per share in cash.

Deal Updates:

  1. On October 22, 2015, The Board of Directors of Pepco Holdings (POM) declared a quarterly dividend of $0.27 per share on Pepco Holdings’ common stock that is payable on Dec. 31, 2015, to shareholders of record on Dec. 10, 2015, provided that the company’s proposed merger with Exelon Corporation does not close on or prior to the close of business on Dec. 10, 2015. The board of directors also declared a contingent pro-rata dividend to be paid in lieu of the regular quarterly dividend described above in the event that the merger closes before the close of business on Dec. 10, 2015.

Closed Deals:

  1. The acquisition of Adept Technology (ADEP) by OMRON Corporation on October 23, 2015. It took 37 days for this deal to be completed.
  2. The acquisition of Millennial Media (MM) by AOL on October 23, 2015. It took 50 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

VSLR07/20/2015SunEdison, Inc. (SUNE)$16.50$11.8512/31/201539.24%217.01%
ODP02/04/2015Staples, Inc. (SPLS)$10.01$7.3012/31/201537.11%205.23%
CI07/24/2015Anthem, Inc. (ANTM)$176.02$132.5412/31/201632.80%27.72%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.3112/31/201627.79%23.48%
HUM07/03/2015Aetna Inc. (AET)$213.67$168.2012/31/201627.04%22.84%
BHI11/16/2014Halliburton Company (HAL)$62.92$53.9312/31/201516.66%92.14%
HE12/03/2014NextEra Energy, Inc. (NEE)$33.50$29.2612/31/201514.49%80.14%
YDLE08/10/2015Envestnet, Inc. (ENV)$18.88$16.5903/31/201613.80%32.09%
MDP09/08/2015Media General, Inc. (MEG)$51.53$45.4006/30/201613.50%19.87%
PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)$37.50$33.1201/31/201613.22%49.76%

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

+VSLR07/20/2015SunEdison, Inc. (SUNE)Special Conditions$2.2 billion$16.50$11.85191,64112/31/201539.24%217.01%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$10.01$7.309,534,73612/31/201537.11%205.23%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$176.02$132.541,939,26512/31/201632.80%27.72%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.3126,61912/31/201627.79%23.48%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$213.67$168.202,746,60212/31/201627.04%22.84%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$62.92$53.933,384,33012/31/201516.66%92.14%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$29.26487,62512/31/201514.49%80.14%
+YDLE08/10/2015Envestnet, Inc. (ENV)Special Conditions$590 million$18.88$16.59630,68903/31/201613.80%32.09%
+MDP09/08/2015Media General, Inc. (MEG)Special Conditions$3.1 billion$51.53$45.40104,03206/30/201613.50%19.87%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$33.12162,61701/31/201613.22%49.76%
+ATML09/20/2015Dialog Semiconductor Plc (DLGNF)Cash Plus Stock$4.4 billion$9.64$8.6210,391,21303/31/201611.87%27.59%
+WMB09/28/2015Energy Transfer Equity, L.P. (ETE)Special Conditions$37.7 billion$43.50$39.206,632,29406/30/201610.97%16.14%
+SNDK10/21/2015Western Digital Corporation (WDC)Special Conditions$19 billion$86.50$78.376,533,23409/30/201610.37%11.14%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$198.98$185.191,358,94812/31/20157.45%41.19%
+CCG10/16/2015affiliates of Harrison Street Real Estate Capital, LLC (N/A)All Cash$1.9 billion$7.03$6.581,277,23003/31/20166.84%15.90%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$32.712,815,39106/30/20166.70%9.85%
+TLR09/15/2015Waterton Precious Metals Fund II Cayman, LP (N/A)All CashN/A$0.58$0.54512,02612/31/20156.42%35.52%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$62.02637,56812/31/20166.42%5.42%
+RNF08/10/2015CVR Partners, LP (UAN)Cash Plus Stock$840 million$13.15$12.4052,23604/30/20166.02%11.76%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$69.29$65.358,384,51506/30/20166.02%8.86%
+NPBC08/17/2015BB&T Corporation (BBT)Special Conditions$1.8 billion$13.00$12.27743,87406/30/20165.95%8.76%
+ONFC02/24/2015Community Bank System Inc. (CBU)All Stock$142 million$23.05$21.7623,98310/31/20155.94%433.70%
+VIMC09/15/2015Vimicro China (N/A)All CashN/A$13.50$12.77111,83012/31/20155.72%31.61%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$6.94$6.5960,73512/31/20155.32%29.42%
+ALTV09/03/2015Momentum Telecom, Inc. (N/A)All Cash$28.7 million$4.70$4.4712,70812/31/20155.15%28.46%
+PLNR08/12/2015Leyard Optoelectronic Co., Ltd. (N/A)All Cash$156.8 million$6.58$6.30135,95012/31/20154.44%24.58%
+SWI10/21/2015Silver Lake Partners and Thoma Bravo, LLC (N/A)All Cash$4.5 billion$60.10$57.961,553,30003/31/20163.69%8.58%
+CAM08/26/2015Schlumberger Limited (SLB)Cash Plus Stock$14.8 billion$70.54$68.102,222,41403/31/20163.58%8.33%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$53.51200,04812/31/20153.48%19.22%
+SLH09/13/2015an affiliate of Vista Equity Partners (N/A)All Cash$6.5 billion$55.85$54.001,221,72603/31/20163.43%7.96%
+EZCH09/30/2015Mellanox Technologies, Ltd. (MLNX)All Cash$620 million$25.50$24.68201,15603/31/20163.32%7.72%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.392,096,81612/10/20153.26%26.43%
+METR08/04/2015F.N.B. Corporation (FNB)All Stock$474 million$32.39$31.3732,66603/31/20163.26%7.57%
+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$28.83463,07304/30/20163.19%6.23%
+BAMM07/13/2015Anderson Family (N/A)All Cash$21 million$3.25$3.1523,70212/31/20153.17%17.56%
+NBBC10/13/2015Yadkin Financial Corporation (YDKN)All Stock$456 million$11.37$11.05684,00006/30/20162.90%4.26%
+ALTR06/01/2015Intel Corporation (INTC)All Cash$16.7 billion$54.00$52.572,596,26503/31/20162.72%6.32%
+FXEN10/13/2015ORLEN Upstream (N/A)All Cash119 million$1.15$1.12189,71112/31/20152.68%14.81%
+BRCM05/28/2015Avago Technologies Limited (AVGO)Special Conditions$37 billion$54.50$53.135,907,78403/31/20162.58%5.99%
+GOMO06/08/2015Sunflower Parent Limited (N/A)All CashN/A$4.90$4.7843,41612/31/20152.51%13.88%
+OMG06/01/2015Apollo Global Management, LLC (APO)All CashN/A$34.00$33.182,982,48512/31/20152.47%13.67%
+GAME04/03/2015Capitalhold Limited and Capitalcorp Limited (N/A)All Cash$1.9 billion$7.10$6.93163,43112/31/20152.45%13.57%
+PGI09/10/2015Siris Capital Group, LLC (N/A)All Cash$1 billion$14.00$13.68235,61112/31/20152.34%12.94%
+ASBI06/29/2015First Merchants Corporation (FRME)All Stock$68.8 million$24.26$23.757,08612/31/20152.13%11.77%
+SYA08/11/2015Sumitomo Life Insurance Company (N/A)All Cash$3.8 billion$32.50$31.85465,16805/15/20162.04%3.69%
+BMR10/08/2015Blackstone Real Estate Partners VIII (BX)All Cash$8 billion$23.75$23.285,316,27903/31/20162.02%4.69%
+MWE07/13/2015MPLX LP (MPLX)Cash Plus Stock$20 billion$41.72$40.901,341,06012/31/20152.00%11.04%
+PCP08/10/2015Berkshire Hathaway Inc. (BRK-A)All Cash$37.2 billion$235.00$230.50903,33603/31/20161.95%4.54%
+AVOL09/03/2015Bohai Leasing Co., Ltd. (N/A)All Cash$7.6 billion$31.00$30.42180,73503/31/20161.91%4.43%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.30$10.116,673,10410/31/20151.90%138.69%
+ISSI06/11/2015Uphill Investment Co (N/A)All CashN/A$23.00$22.58254,57912/31/20151.86%10.29%
+MSO06/22/2015Sequential Brands Group, Inc. (SQBG)Special Conditions$353 million$6.15$6.04194,65312/31/20151.82%10.07%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.071,469,16606/30/20161.77%2.61%
+HNT07/02/2015Centene Corp. (CNC)Cash Plus Stock$6.8 billion$63.86$62.761,543,70603/31/20161.75%4.07%
+STNR08/21/2015affiliate of Catterton (N/A)All Cash$834 million$65.00$63.92112,88603/31/20161.69%3.93%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.11238,44103/31/20161.54%3.57%
+ALU04/15/2015Nokia Corporation (NOK)All Stock$16.6 billion$3.75$3.692,251,59106/30/20161.50%2.21%
+GPT07/01/2015Chambers Street Properties (CSG)All Stock$2.5 billion$23.54$23.23406,36112/31/20151.34%7.40%
+IPCM08/04/2015Team Health Holdings, Inc. (TMH)All Cash$1.6 billion$80.25$79.22403,40212/31/20151.30%7.19%
+CYT07/29/2015Solvay (N/A)All Cash$6.4 billion$75.25$74.291,262,71112/31/20151.29%7.15%
+NVSL06/04/2015Liberty Bank (N/A)All Cash$78 million$11.00$10.869,14103/31/20161.29%3.00%
+BEE09/08/2015Blackstone Real Estate Partners VIII L.P. (N/A)All Cash$6 billion$14.25$14.076,458,93703/31/20161.28%2.97%
+CB07/01/2015ACE Limited (ACE)Cash Plus Stock$28.3 billion$132.05$130.581,396,04603/31/20161.12%2.61%
+PRE08/03/2015EXOR S.p.A. (N/A)All Cash$6.9 billion$140.50$138.96418,00903/31/20161.11%2.58%
+FSL03/02/2015NXP Semiconductors NV (NXPI)Cash Plus Stock$16.7 billion$40.08$39.712,484,22412/31/20150.94%5.20%
+SIBC12/30/2014First NBC Bank Holding Company (FNBC)All Cash$49 million$21.25$21.101,00812/31/20150.71%3.93%
+WPP10/13/2015SCA (N/A)All Cash$513 million$10.25$10.18857,71701/31/20160.69%2.59%
+DAEG10/08/2015Open Text Corporation (OTEX)All Cash$13.5 million$0.82$0.815167,29112/31/20150.61%3.39%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$89.78$89.511,250,01912/31/20150.30%1.67%
+ENVI09/10/2015Ericsson (N/A)All Cash$125 million$4.10$4.0940,70912/31/20150.24%1.35%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$139.75867,61811/30/20150.18%1.87%
+XOOM07/01/2015PayPal, Inc. (N/A)All Cash$890 million$25.00$24.96189,52612/31/20150.16%0.89%
+UTIW10/09/2015DSV (N/A)All Cash$1.35 billion$7.10$7.091,599,39703/31/20160.14%0.33%
+SFG07/23/2015Meiji Yasuda Life Insurance Company (N/A)All Cash$5 billion$115.00$114.86212,31203/31/20160.12%0.28%
+CNW09/09/2015XPO Logistics, Inc. (XPO)All Cash$3 billion$47.60$47.561,383,92710/31/20150.08%6.14%
+HCC06/10/2015Tokio Marine Holdings, Inc. (N/A)All Cash$7.5 billion$78.00$77.971,670,14412/31/20150.04%0.21%
+REMY07/13/2015BorgWarner Inc. (BWA)All Cash$1.2 billion$29.50$29.50173,40512/31/20150.00%0.00%
+TW06/30/2015Willis Group Holdings Public Limited Company (WSH)Cash Plus Stock$8.7 billion$121.35$122.67205,49112/31/2015-1.08%-5.97%
+JMG10/07/2015Gannett Co., Inc. (GCI)All Cash$280 million$12.00$12.22144,52203/31/2016-1.80%-4.19%
+SIRO09/15/2015DENTSPLY International Inc. (XRAY)All Stock$5.51 billion$106.60$109.29424,60403/31/2016-2.46%-5.72%
+FSGI03/25/2015Atlantic Capital Bancshares, Inc. (N/A)All Cash$160 million$2.35$2.4579,13010/31/2015-4.08%-297.96%
+PSEM09/03/2015Diodes Incorporated (DIOD)All Cash$400 million$17.00$17.8485,48512/31/2015-4.71%-26.04%
+RENT09/29/2015comScore, Inc. (SCOR)All Stock$732 million$49.73$53.19113,62101/31/2016-6.51%-24.51%
+PMCS10/05/2015Skyworks Solutions Inc. (SWKS)All Cash$2 billion$10.50$11.723,214,32306/30/2016-10.41%-15.32%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$5.33$7.2255,41103/31/2015-26.15%45.67%

Voluntary Disclosure: I hold a long position in CCG.

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