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Merger Arbitrage Mondays – November 2, 2015

  • November 1, 2015

Merger activity increased last week with eleven new deals announced and four 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 2015171
Total Number of Deals Not Completed in 20155
Total Number of Pending Deals
Cash Deals50
Stock Deals12
Stock & Cash Deals20
Special Conditions10
Total Number of Pending Deals92
Total Deal Size$1256.43 billion

New Deals:

  1. The acquisition of Piedmont Natural Gas (PNY) by Duke Energy Corporation (DUK) for $6.7 billion or $60.00 per share in cash.
  2. The acquisition of Northern Tier Energy (NTI) by Western Refining (WNR) in a cash plus stock deal. Under the terms of the agreement, shareholders of Northern Tier Energy will receive $17.50 per share in cash and 0.2266 a share of Western common stock.
  3. The acquisition of Pep Boys – Manny, Moe & Jack (PBY) by Bridgestone Americas for $835 million or $15.00 per share in cash.
  4. The acquisition of VBI Vaccines (VBIV) by SciVac Therapeutics (SVACF) in an all stock deal. Under the terms of the agreement, each share of VBI common stock will be converted into the right to receive 20.808356 common shares of SciVac. We are using March 31, 2016 as the closing date because a closing date is not specified. We will update the closing date when the information becomes available.
  5. The acquisition of TriVascular Technologies (TRIV) by (ELGX) in a stock and cash transaction valued at $9.10 per TriVascular share, or a total of approximately $211 million. Under the terms of the agreement, each outstanding TriVascular share will be entitled to receive a number of shares of Endologix common stock and an amount of cash, each to be determined at the closing of the merger. The stock portion of the consideration will equal in the aggregate 19.999% of Endologix’s outstanding shares of common stock as of the effective time of the merger. The cash portion of the consideration will be determined at closing based on the intrinsic value of TriVascular options, restricted stock units, and warrants and, if applicable, the conversion of TriVascular convertible debt prior to such time. We are treating this as a ‘special conditions’ deal, since there is so much uncertainty about the actual value of the deal.
  6. The acquisition of River Valley Bancorp (RIVR) by German American Bancorp (GABC) in an cash plus stock deal. Under the terms of the agreement, River Valley common shareholders will receive 0.770 shares of German American common stock for each share of River Valley, plus a cash payment of $9.90 per River Valley share.
  7. The acquisition of Rite Aid Corporation (RAD) by Walgreens Boots Alliance (WBA) for $17.2 billion or $9.00 per share in cash.
  8. The acquisition of Perseon Corporation (PRSN) by Galil Medical for $10.6 million. Under the terms of the agreement, shareholders of Perseon Corporation will receive $1.00 per share in cash.  In addition, Galil Medical will offer $0.02 per publicly traded warrant.
  9. The acquisition of Diamond Foods (DMND) by Snyder’s-Lance (LNCE) for $1.91 billion in a cash plus stock deal. Under the terms of the agreement, Diamond stockholders will receive 0.775 Snyder’s-Lance shares and $12.50 in cash per Diamond Foods share upon closing of the transaction.
  10. The acquisition of Astoria Financial Corporation (AF) by New York Community Bancorp (NYCB) for $2 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Astoria Financial Corporation will receive one share of New York Community common stock and $0.50 in cash in exchange for each share of Astoria stock held at the merger date.
  11. The acquisition of First Niagara Financial Group (FNFG) by KeyCorp. (KEY) for $4.1 billion in a cash plus stock deal. Under the terms of the agreement, First Niagara shareholders will receive 0.68 KeyCorp shares and $2.30 in cash for each First Niagara common share.

Deal Updates:

  1. On October 30, 2015, Skyworks Solutions (SWKS) and PMC-Sierra (PMCS) announced that they have entered into an amended and restated merger agreement under which Skyworks has agreed to acquire PMC for $11.60 in cash per share of PMC common stock, an increase from its previous agreement to acquire PMC for $10.50 in cash per share of PMC common stock. Skyworks proposed the amended and restated merger agreement in response to Microsemi Corporations (MSCC) proposal to acquire PMC for $8.75 in cash and 0.0736 of a share of Microsemi common stock per share of PMC common stock. Microsemi hiked its bid again to $2.3 billion in cash and stock, or roughly $11.88 a share, hours after Skyworks Solutions raised its initial offer.

Closed Deals:

  1. The acquisition of Envivio (ENVI) by Ericsson on October 27, 2015. It took 47 days for this deal to be completed.
  2. The acquisition of HCC Insurance Holdings (HCC) by Tokio Marine Holdings on October 27, 2015. It took 139 days for this deal to be completed.
  3. The acquisition of OM Group (OMG) by Apollo Global Management (APO) on October 28, 2015. It took 149 days for this deal to be completed.
  4. The acquisition of Con-way (CNW) by XPO Logistics (XPO) on October 30, 2015. It took 51 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

PRSN10/27/2015Galil Medical (N/A)$1.00$0.575003/31/201673.91%179.86%
VSLR07/20/2015SunEdison, Inc. (SUNE)$16.50$11.8312/31/201539.48%244.22%
TRIV10/26/2015Endologix Inc. (ELGX)$9.10$6.7601/31/201634.62%140.38%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.1912/31/201632.60%28.00%
ODP02/04/2015Staples, Inc. (SPLS)$10.09$7.6212/31/201532.44%200.71%
CI07/24/2015Anthem, Inc. (ANTM)$175.09$134.0412/31/201630.63%26.30%
HUM07/03/2015Aetna Inc. (AET)$221.13$178.6312/31/201623.79%20.43%
VBIV10/26/2015SciVac Therapeutics Inc. (SVACF)$3.33$2.7003/31/201623.31%56.72%
TLR09/15/2015Waterton Precious Metals Fund II Cayman, LP (N/A)$0.58$0.48112/31/201520.58%127.33%
BHI11/16/2014Halliburton Company (HAL)$61.99$52.6812/31/201517.66%109.28%

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

+PRSN10/27/2015Galil Medical (N/A)All Cash$10.6 million$1.00$0.5750152,50603/31/201673.91%179.86%
+VSLR07/20/2015SunEdison, Inc. (SUNE)Special Conditions$2.2 billion$16.50$11.83431,86112/31/201539.48%244.22%
+TRIV10/26/2015Endologix Inc. (ELGX)Special Conditions$211 million$9.10$6.7677,23901/31/201634.62%140.38%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.1962,96312/31/201632.60%28.00%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$10.09$7.624,022,18812/31/201532.44%200.71%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$175.09$134.041,173,39012/31/201630.63%26.30%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$221.13$178.63950,24112/31/201623.79%20.43%
+VBIV10/26/2015SciVac Therapeutics Inc. (SVACF)All StockN/A$3.33$2.7042,95203/31/201623.31%56.72%
+TLR09/15/2015Waterton Precious Metals Fund II Cayman, LP (N/A)All CashN/A$0.58$0.48142,52312/31/201520.58%127.33%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$61.99$52.682,399,71012/31/201517.66%109.28%
+ATML09/20/2015Dialog Semiconductor Plc (DLGNF)Cash Plus Stock$4.4 billion$8.75$7.6018,433,64703/31/201615.12%36.79%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$29.26356,16012/31/201514.49%89.65%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.8833,951,73112/31/201614.21%12.21%
+YDLE08/10/2015Envestnet, Inc. (ENV)Special Conditions$590 million$18.88$16.78259,04403/31/201612.51%30.45%
+SNDK10/21/2015Western Digital Corporation (WDC)Special Conditions$19 billion$86.50$77.003,075,23409/30/201612.34%13.52%
+WMB09/28/2015Energy Transfer Equity, L.P. (ETE)Special Conditions$37.7 billion$43.50$39.447,878,47806/30/201610.29%15.59%
+MDP09/08/2015Media General, Inc. (MEG)Special Conditions$3.1 billion$51.53$47.02240,35106/30/20169.59%14.53%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$34.38229,13101/31/20169.08%36.80%
+NPBC08/17/2015BB&T Corporation (BBT)Special Conditions$1.8 billion$13.00$12.04819,55706/30/20167.97%12.08%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$203.28$189.401,542,75212/31/20157.33%45.33%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$32.592,027,13706/30/20167.09%10.74%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$17.02$15.967,696,71512/31/20166.64%5.70%
+ONFC02/24/2015Community Bank System Inc. (CBU)All Stock$142 million$22.97$21.542,04812/31/20156.63%41.02%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$6.60$6.2264,97812/31/20156.11%37.79%
+CCG10/16/2015affiliates of Harrison Street Real Estate Capital, LLC (N/A)All Cash$1.9 billion$7.03$6.63768,37803/31/20166.03%14.68%
+BRCM05/28/2015Avago Technologies Limited (AVGO)Special Conditions$37 billion$54.50$51.403,658,09703/31/20166.03%14.68%
+ALTV09/03/2015Momentum Telecom, Inc. (N/A)All Cash$28.7 million$4.70$4.4414,39612/31/20155.86%36.23%
+PLNR08/12/2015Leyard Optoelectronic Co., Ltd. (N/A)All Cash$156.8 million$6.58$6.23144,34212/31/20155.62%34.76%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$62.50653,31212/31/20165.60%4.81%
+VIMC09/15/2015Vimicro China (N/A)All CashN/A$13.50$12.82107,38412/31/20155.30%32.81%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$70.30$67.121,208,58806/30/20164.73%7.16%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$57.311,155,73012/31/20164.69%4.03%
+MWE07/13/2015MPLX LP (MPLX)Cash Plus Stock$20 billion$45.65$43.681,439,21712/31/20154.51%27.92%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$53.00908,80612/31/20154.47%27.66%
+EZCH09/30/2015Mellanox Technologies, Ltd. (MLNX)All Cash$620 million$25.50$24.41135,19003/31/20164.47%10.87%
+NBBC10/13/2015Yadkin Financial Corporation (YDKN)All Stock$456 million$11.78$11.31184,66806/30/20164.11%6.23%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$10.75$10.3572,209,38809/30/20163.82%4.19%
+SWI10/21/2015Silver Lake Partners and Thoma Bravo, LLC (N/A)All Cash$4.5 billion$60.10$58.031,355,86003/31/20163.57%8.68%
+CAM08/26/2015Schlumberger Limited (SLB)Cash Plus Stock$14.8 billion$70.40$68.011,604,66903/31/20163.52%8.56%
+METR08/04/2015F.N.B. Corporation (FNB)All Stock$474 million$31.96$30.9863,63803/31/20163.18%7.73%
+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$28.87506,08204/30/20163.05%6.18%
+GAME04/03/2015Capitalhold Limited and Capitalcorp Limited (N/A)All Cash$1.9 billion$7.10$6.89371,18112/31/20153.05%18.86%
+RIVR10/26/2015German American Bancorp Inc. (GABC)Cash Plus StockN/A$34.02$33.029,05603/31/20163.04%7.40%
+ALTR06/01/2015Intel Corporation (INTC)All Cash$16.7 billion$54.00$52.552,491,63403/31/20162.76%6.71%
+STNR08/21/2015affiliate of Catterton (N/A)All Cash$834 million$65.00$63.3682,83203/31/20162.59%6.30%
+BAMM07/13/2015Anderson Family (N/A)All Cash$21 million$3.25$3.1720,87912/31/20152.52%15.61%
+SYA08/11/2015Sumitomo Life Insurance Company (N/A)All Cash$3.8 billion$32.50$31.73698,22605/15/20162.43%4.54%
+PGI09/10/2015Siris Capital Group, LLC (N/A)All Cash$1 billion$14.00$13.68251,24712/31/20152.34%14.47%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.631,186,86912/10/20152.33%22.36%
+ISSI06/11/2015Uphill Investment Co (N/A)All CashN/A$23.00$22.48103,63612/31/20152.31%14.31%
+IPCM08/04/2015Team Health Holdings, Inc. (TMH)All Cash$1.6 billion$80.25$78.48304,92412/31/20152.26%13.95%
+SLH09/13/2015an affiliate of Vista Equity Partners (N/A)All Cash$6.5 billion$55.85$54.661,246,89903/31/20162.18%5.30%
+GOMO06/08/2015Sunflower Parent Limited (N/A)All CashN/A$4.90$4.8035,83312/31/20152.08%12.89%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.001,699,07906/30/20162.04%3.09%
+MSO06/22/2015Sequential Brands Group, Inc. (SQBG)Special Conditions$353 million$6.15$6.04147,60612/31/20151.82%11.27%
+PCP08/10/2015Berkshire Hathaway Inc. (BRK-A)All Cash$37.2 billion$235.00$230.811,089,21103/31/20161.82%4.42%
+RNF08/10/2015CVR Partners, LP (UAN)Cash Plus Stock$840 million$12.05$11.85182,47704/30/20161.73%3.50%
+AVOL09/03/2015Bohai Leasing Co., Ltd. (N/A)All Cash$7.6 billion$31.00$30.51105,98503/31/20161.61%3.91%
+HNT07/02/2015Centene Corp. (CNC)Cash Plus Stock$6.8 billion$65.25$64.26759,88403/31/20161.54%3.74%
+CB07/01/2015ACE Limited (ACE)Cash Plus Stock$28.3 billion$131.27$129.351,606,74103/31/20161.48%3.61%
+BMR10/08/2015Blackstone Real Estate Partners VIII (BX)All Cash$8 billion$23.75$23.412,950,66903/31/20161.45%3.53%
+NVSL06/04/2015Liberty Bank (N/A)All Cash$78 million$11.00$10.864,20403/31/20161.29%3.14%
+ALU04/15/2015Nokia Corporation (NOK)All Stock$16.6 billion$4.08$4.038,109,77306/30/20161.27%1.92%
+SIRO09/15/2015DENTSPLY International Inc. (XRAY)All Stock$5.51 billion$110.39$109.13355,64703/31/20161.16%2.82%
+CYT07/29/2015Solvay (N/A)All Cash$6.4 billion$75.25$74.42514,64912/31/20151.12%6.90%
+PRE08/03/2015EXOR S.p.A. (N/A)All Cash$6.9 billion$140.50$139.00221,34703/31/20161.08%2.63%
+DMND10/28/2015Snyder’s-Lance, Inc. (LNCE)Cash Plus Stock$1.91 billion$40.04$39.621,182,75203/31/20161.07%2.60%
+BEE09/08/2015Blackstone Real Estate Partners VIII L.P. (N/A)All Cash$6 billion$14.25$14.103,310,17403/31/20161.06%2.59%
+FSL03/02/2015NXP Semiconductors NV (NXPI)Cash Plus Stock$16.7 billion$33.84$33.492,482,17612/31/20151.04%6.41%
+FXEN10/13/2015ORLEN Upstream (N/A)All Cash119 million$1.15$1.14692,75312/31/20150.88%5.43%
+DAEG10/08/2015Open Text Corporation (OTEX)All Cash$13.5 million$0.82$0.8131,84112/31/20150.86%5.33%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.19773,60703/31/20160.65%1.59%
+FSGI03/25/2015Atlantic Capital Bancshares, Inc. (N/A)All Cash$160 million$2.35$2.3420,75711/02/20150.43%0.00%
+WPP10/13/2015SCA (N/A)All Cash$513 million$10.25$10.21750,81101/31/20160.39%1.59%
+NTI10/26/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$26.93$26.84688,78403/31/20160.34%0.83%
+SFG07/23/2015Meiji Yasuda Life Insurance Company (N/A)All Cash$5 billion$115.00$114.72179,57503/31/20160.24%0.59%
+XOOM07/01/2015PayPal, Inc. (N/A)All Cash$890 million$25.00$24.94188,77412/31/20150.24%1.49%
+CYN01/22/2015Royal Bank of Canada (RY)Cash Plus Stock$5.4 billion$89.81$89.6013,898,11212/31/20150.23%1.45%
+SIAL09/22/2014Merck KGaA (N/A)All Cash$17 billion$140.00$139.72648,30111/30/20150.20%2.61%
+REMY07/13/2015BorgWarner Inc. (BWA)All Cash$1.2 billion$29.50$29.49166,55812/31/20150.03%0.21%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.10$10.1225,304,16911/01/2015-0.18%64.61%
+PBY10/26/2015Bridgestone Americas, Inc. (N/A)All Cash$835 million$15.00$15.041,525,05303/31/2016-0.27%-0.65%
+TW06/30/2015Willis Group Holdings Public Limited Company (WSH)Cash Plus Stock$8.7 billion$123.04$123.56540,30312/31/2015-0.42%-2.59%
+UTIW10/09/2015DSV (N/A)All Cash$1.35 billion$7.10$7.131,674,36003/31/2016-0.42%-1.02%
+GPT07/01/2015Chambers Street Properties (CSG)All Stock$2.5 billion$22.58$22.68378,55912/31/2015-0.42%-2.62%
+SIBC12/30/2014First NBC Bank Holding Company (FNBC)All Cash$49 million$21.25$21.353,00012/31/2015-0.47%-2.90%
+ASBI06/29/2015First Merchants Corporation (FRME)All Stock$68.8 million$23.70$23.9815912/31/2015-1.15%-7.12%
+JMG10/07/2015Gannett Co., Inc. (GCI)All Cash$280 million$12.00$12.2496,96003/31/2016-1.96%-4.77%
+PSEM09/03/2015Diodes Incorporated (DIOD)All Cash$400 million$17.00$17.45297,53112/31/2015-2.58%-15.95%
+RENT09/29/2015comScore, Inc. (SCOR)All Stock$732 million$49.20$55.18135,26901/31/2016-10.84%-43.97%
+PMCS10/05/2015Skyworks Solutions Inc. (SWKS)All Cash$2 billion$10.50$11.9228,225,85706/30/2016-11.91%-18.04%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$5.35$7.3268,89903/31/2015-26.98%45.59%

Voluntary Disclosure: I hold a long position in CCG.

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