Merger Arbitrage Mondays – February 1, 2016

  • February 1, 2016

Merger activity increased last week with five new deals announced and three 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 201614
Total Number of Pending Deals
Cash Deals42
Stock Deals23
Stock & Cash Deals20
Special Conditions12
Total Number of Pending Deals97
Total Deal Size$860.96 billion

New Deals:

  1. The merger of Johnson Controls (JCI) and Tyco International (TYC). Immediately prior to the merger, Tyco will effect a reverse stock split so that Tyco shareholders will receive a fixed exchange ratio of 0.9550 shares for each of their existing Tyco shares. Johnson Controls shareholders may elect to receive either one share of the combined company for each of their Johnson Controls shares or cash equal to $34.88 per share. Elections by Johnson Controls shareholders are subject to proration such that an aggregate of approximately $3.9 billion cash is paid in the merger.
  2. The acquisition of Affymetrix (AFFX) by Thermo Fisher Scientific (TMO) for $1.3 billion or $14.00 per share in cash.
  3. The acquisition of FirstMerit Corporation (FMER) by Huntington Bancshares Incorporated (HBAN) for $3.4 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of FirstMerit Corporation will receive 1.72 shares of Huntington common stock, and $5.00 in cash, for each share of FirstMerit Corporation common stock.
  4. The acquisition of Media General (MEG) by Nexstar Broadcasting Group (NXST) for $4.6 billion in a cash plus stock deal. Under the terms of agreement, shareholders of Media General will receive $10.55 per share in cash and 0.1249 of a share of Nexstar Class A common stock for each Media General share. The agreement includes potential additional consideration in the form of a contingent value right (“CVR”) entitling Media General shareholders to net cash proceeds as received from the sale of Media General’s spectrum in the Federal Communication Commission’s upcoming Incentive Auction.
  5. The acquisition of Avenue Financial Holdings (AVNU) by Pinnacle Financial Partners (PNFP) for $201.4 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Avenue Financial Holdings will receive 0.36 shares of Pinnacle’s common stock and $2.00 in cash for every Avenue share.

Deal Updates:

  1. On January 27, 2016, Media General (MEG) terminated its previously announced merger with Meredith Corporation (MDP) and agreed to be acquired by Nexstar Broadcasting Group (NXST).

Closed Deals:

  1. The acquisition of MedAssets (MDAS) by Pamplona Capital Management on January 27, 2016. It took 86 days for this deal to be completed.
  2. The acquisition of OmniVision Technologies (OVTI) by Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. on January 28, 2016. It took 273 days for this deal to be completed.
  3. The acquisition of BioMed Realty Trust (BMR) by Blackstone Real Estate Partners VIII (BX) on January 28, 2016. It took 112 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

WMB09/28/2015Energy Transfer Equity, L.P. (ETE)$43.50$19.3006/30/2016125.39%305.11%
VSLR07/20/2015SunEdison, Inc. (SUNE)$15.25$8.3003/31/201683.73%518.02%
ODP02/04/2015Staples, Inc. (SPLS)$9.20$5.1505/16/201678.67%273.48%
TRIV10/26/2015Endologix Inc. (ELGX)$9.10$5.6101/31/201662.21%-22706.77%
HUM07/03/2015Aetna Inc. (AET)$210.29$162.7912/31/201629.18%31.89%
HOT11/16/2015Marriott International, Inc. (MAR)$79.88$62.2406/30/201628.34%68.97%
CI07/24/2015Anthem, Inc. (ANTM)$170.63$133.6012/31/201627.72%30.29%
BHI11/16/2014Halliburton Company (HAL)$54.60$43.5104/30/201625.50%104.58%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.4012/31/201624.41%26.68%
SNDK10/21/2015Western Digital Corporation (WDC)$86.50$70.7009/30/201622.35%33.71%

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

+WMB09/28/2015Energy Transfer Equity, L.P. (ETE)Special Conditions$37.7 billion$43.50$19.3014,932,70606/30/2016125.39%305.11%
+VSLR07/20/2015SunEdison, Inc. (SUNE)Special Conditions$2.2 billion$15.25$8.30248,19003/31/201683.73%518.02%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$9.20$5.1513,209,56605/16/201678.67%273.48%
+TRIV10/26/2015Endologix Inc. (ELGX)Special Conditions$211 million$9.10$5.6119,28401/31/201662.21%0.00%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$210.29$162.791,200,57512/31/201629.18%31.89%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$12.2 billion$79.88$62.242,069,70806/30/201628.34%68.97%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$170.63$133.601,652,48512/31/201627.72%30.29%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$54.60$43.514,132,81704/30/201625.50%104.58%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.4086,97012/31/201624.41%26.68%
+SNDK10/21/2015Western Digital Corporation (WDC)Special Conditions$19 billion$86.50$70.704,669,45109/30/201622.35%33.71%
+AGN11/23/2015Pfizer Inc. (PFE)All Stock$160 billion$344.54$283.763,638,18012/31/201621.42%23.41%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.7910,505,95012/31/201615.53%16.97%
+NPBC08/17/2015BB&T Corporation (BBT)Special Conditions$1.8 billion$13.00$11.401,176,13604/01/201614.04%85.38%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$29.92587,53906/30/201611.97%29.12%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$31.911,961,77706/30/20169.37%22.80%
+MTSN12/01/2015Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A)All Cash$300 million$3.80$3.49239,44903/31/20168.88%54.95%
+RNF08/10/2015CVR Partners, LP (UAN)Cash Plus Stock$840 million$8.23$7.5743,56104/30/20168.69%35.63%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.70522,15603/31/20168.11%50.16%
+BLT12/10/2015American Securities LLC and P2 Capital Partners, LLC (N/A)All Cash$855 million$10.00$9.301,504,42806/30/20167.53%18.32%
+BXLT01/11/2016Shire plc (SHPG)Cash Plus Stock$32 billion$42.94$40.018,195,82406/30/20167.33%17.83%
+MCOX12/22/2015Minat Associated Co. Ltd. (N/A)All CashN/A$4.00$3.7310,23706/30/20167.24%17.61%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$25.05231,89806/30/20166.99%17.00%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.15104,45806/30/20166.46%15.73%
+RLD11/09/2015Rizvi Traverse Management, LLC (N/A)All Cash$551 million$11.00$10.392,277,85603/31/20165.87%36.32%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$192.69$182.012,107,57206/30/20165.87%14.28%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.98$15.13707,46712/31/20165.62%6.14%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$16.247,239,75112/15/20165.54%6.36%
+HMIN12/07/2015BTG Hotels Group (N/A)All CashN/A$35.80$33.95203,02006/30/20165.45%13.26%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$23.90153,67904/30/20164.60%18.88%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$4.09$3.9142,02402/20/20164.54%87.30%
+DATE12/07/2015FutureWorld Inc. (N/A)All CashN/A$7.56$7.2486,93403/31/20164.42%27.34%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$53.14591,77403/31/20164.20%25.96%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$16.84$16.1943,05206/30/20164.01%9.75%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$63.561,361,67912/31/20163.84%4.20%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$35.69$34.395,212,68109/30/20163.78%5.70%
+MR11/04/2015Excelsior Union Limited and Solid Union Limited (N/A)All Cash$3.3 billion$28.00$27.00727,55203/31/20163.70%22.91%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$19.95$19.241,463,04709/15/20163.67%5.90%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$24.723,67009/30/20163.56%5.37%
+GMCR12/07/2015JAB Holding Company (N/A)All Cash$13.9 billion$92.00$89.253,304,87803/31/20163.08%19.06%
+SLH09/13/2015an affiliate of Vista Equity Partners (N/A)All Cash$6.5 billion$55.85$54.262,579,87603/31/20162.93%18.13%
+NBBC10/13/2015Yadkin Financial Corporation (YDKN)All Stock$456 million$11.62$11.32117,72306/30/20162.65%6.45%
+JAH12/14/2015Newell Rubbermaid Inc. (NWL)Cash Plus Stock$13 billion$54.43$53.054,864,50206/30/20162.60%6.32%
+VBIV10/26/2015SciVac Therapeutics Inc. (SVACF)All StockN/A$2.16$2.1125,06303/31/20162.56%15.85%
+ABCW01/12/2016Old National Bancorp. (ONB)All Stock461 million$43.74$42.68292,80606/30/20162.49%6.06%
+BONA12/15/2015Mountain Tiger International Limited (N/A)All Cash$1 billion$13.70$13.38462,17606/30/20162.39%5.82%
+PULB12/03/2015First Busey Corporation (BUSE)All Stock$210.7 million$14.56$14.2270,85906/30/20162.39%5.81%
+CBNJ01/05/2016OceanFirst Financial Corp. (OCFC)Cash Plus Stock$208.1 million$13.55$13.2555,42909/30/20162.24%3.38%
+ARG11/17/2015Air Liquide (N/A)All Cash$13.4 billion$143.00$140.001,116,24503/31/20162.14%13.26%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.681,651,25003/31/20162.14%13.22%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$36.7575,02801/31/20162.04%0.00%
+CHEV11/24/2015MainSource Financial Group, Inc. (MSFG)All Stock$107.4 million$15.34$15.0411,21809/30/20161.99%3.01%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$19.76$19.384,849,95909/30/20161.95%2.94%
+CCG10/16/2015affiliates of Harrison Street Real Estate Capital, LLC (N/A)All Cash$1.9 billion$7.03$6.922,505,07503/31/20161.59%9.83%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.123,921,78506/30/20161.59%3.86%
+NGLS11/03/2015Targa Resources Corp. (TRGP)All Stock$5.54 billion$13.93$13.742,782,66203/31/20161.39%8.62%
+YOKU11/06/2015Alibaba Group Holding Limited (BABA)All Cash$5.37 billion$27.60$27.232,873,27603/31/20161.36%8.41%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$67.90$66.992,357,39906/30/20161.35%3.29%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.241,141,58312/31/20161.28%1.40%
+CTCT11/02/2015Endurance International Group Holdings, Inc. (EIGI)All Cash$1.1 billion$32.00$31.61732,20312/31/20161.23%1.35%
+PCL11/09/2015Weyerhaeuser Co. (WY)All Stock$8.44 billion$40.98$40.512,214,34005/15/20161.15%4.04%
+ATML01/19/2016Microchip Technology Inc. (MCHP)Special Conditions$3.40 billion$8.15$8.0611,172,07206/30/20161.12%2.72%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$9.89$9.793,151,13209/30/20161.01%1.52%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$10.69$10.59569,45006/30/20160.96%2.34%
+HNT07/02/2015Centene Corp. (CNC)Cash Plus Stock$6.8 billion$66.85$66.221,210,28303/31/20160.95%5.90%
+TSYS11/23/2015Comtech Telecommunications Corp. (CMTL)All Cash$339.7 million$5.00$4.96727,19103/31/20160.81%4.99%
+CAM08/26/2015Schlumberger Limited (SLB)Cash Plus Stock$14.8 billion$66.19$65.663,496,17003/31/20160.80%4.95%
+DMND10/28/2015Snyder’s-Lance, Inc. (LNCE)Cash Plus Stock$1.91 billion$36.97$36.70441,89203/31/20160.73%4.50%
+OCAT11/10/2015Astellas Pharma Inc. (N/A)All Cash$379 million$8.50$8.44732,57705/09/20160.71%2.65%
+HPY12/15/2015Global Payments Inc. (GPN)Cash Plus Stock$4.3 billion$92.70$92.08386,86205/31/20160.67%2.05%
+RIVR10/26/2015German American Bancorp Inc. (GABC)Cash Plus StockN/A$34.40$34.182,31403/31/20160.65%4.01%
+EZCH09/30/2015Mellanox Technologies, Ltd. (MLNX)All Cash$620 million$25.50$25.34343,19103/31/20160.63%3.91%
+SIRO09/15/2015DENTSPLY International Inc. (XRAY)All Stock$5.51 billion$106.84$106.29999,31603/31/20160.52%3.19%
+ALU04/15/2015Nokia Corporation (NOK)All Stock$16.6 billion$3.96$3.943,028,97306/30/20160.51%1.24%
+ARPI12/03/2015American Homes 4 Rent (AMH)All Stock$1.5 billion$17.01$16.94355,47706/30/20160.43%1.06%
+KING11/02/2015Activision Blizzard, Inc. (ATVI)All Cash$5.9 billion$18.00$17.93662,46603/31/20160.39%2.42%
+SFG07/23/2015Meiji Yasuda Life Insurance Company (N/A)All Cash$5 billion$115.00$114.66325,26703/31/20160.30%1.83%
+METR08/04/2015F.N.B. Corporation (FNB)All Stock$474 million$28.59$28.5245,08003/31/20160.26%1.62%
+SWI10/21/2015Silver Lake Partners and Thoma Bravo, LLC (N/A)All Cash$4.5 billion$60.10$59.952,413,51703/31/20160.25%1.55%
+PRE08/03/2015EXOR S.p.A. (N/A)All Cash$6.9 billion$140.50$140.40533,61203/31/20160.07%0.44%
+PBY12/30/2015Icahn Enterprises, L.P. (IEP)All Cash$1.031 billion$18.50$18.491,084,77403/31/20160.05%0.33%
+PCP08/10/2015Berkshire Hathaway Inc. (BRK-A)All Cash$37.2 billion$235.00$234.935,642,60303/31/20160.03%0.18%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.25388,55003/31/20160.00%0.00%
+SYA08/11/2015Sumitomo Life Insurance Company (N/A)All Cash$3.8 billion$32.00$32.022,411,74202/02/2016-0.06%-22.80%
+JMG10/07/2015Gannett Co., Inc. (GCI)All Cash$280 million$12.00$12.0274,00503/31/2016-0.17%-1.03%
+AFFX01/26/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$1.3 billion$14.00$14.033,318,66106/30/2016-0.21%-0.52%
+BRCM05/28/2015Avago Technologies Limited (AVGO)Special Conditions$37 billion$54.50$54.6723,579,33003/31/2016-0.31%-1.92%
+RENT09/29/2015comScore, Inc. (SCOR)All Stock$732 million$44.31$44.47478,35301/31/2016-0.36%131.73%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$13.09$13.1618,87103/31/2016-0.51%-3.13%
+IRC12/15/2015real estate funds managed by DRA Advisors LLC (N/A)All Cash$2.3 billion$10.60$10.71636,65006/30/2016-1.03%-2.50%
+FRM11/02/2015Team, Inc. (TISI)All Stock$335 million$5.16$5.24238,13703/31/2016-1.53%-9.44%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$19.15$19.5750,16109/30/2016-2.14%-3.23%
+HFFC11/30/2015Great Western Bancorp. Inc. (GWB)All Stock$139.5 million$16.98$17.3716,02006/30/2016-2.26%-5.49%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$20.491,972,86402/03/2016-2.39%-436.43%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$58.50$59.971,644,51906/30/2016-2.44%-5.95%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$24.82$25.70549,37306/30/2016-3.41%-8.29%
+ANAD01/19/2016II-VI Incorporated (IIVI)All Cash$61 million$0.66$0.690503,57303/31/2016-4.35%-26.90%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.60$6.00206,95403/31/2015-23.31%27.71%

Disclaimer: Clients of Signal Partners, LLC  and I may have positions in any of these stocks at any time. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

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