Merger Arbitrage Mondays – February 29, 2016

  • February 28, 2016

Merger activity increased last week with five 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 201630
Total Number of Deals Not Completed in 20161
Total Number of Pending Deals
Cash Deals46
Stock Deals19
Stock & Cash Deals22
Special Conditions10
Total Number of Pending Deals97
Total Deal Size$905.29 billion

New Deals:

  1. The acquisition of Newport (NEWP) by MKS Instruments (MKSI) for $980 million or $23.00 per share in cash.
  2. The acquisition of PowerSecure International (POWR) by Southern Company (SO) for $431 million or $18.75 per share in cash.
  3. The acquisition of Rouse Properties (RSE) by an affiliate of Brookfield Asset Management for $2.8 billion or $18.25 per share in cash.
  4. The acquisition of Apollo Residential Mortgage (AMTG) by Apollo Commercial Real Estate Finance (ARI) for $641 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Apollo Residential Mortgage will receive approximately 0.417 ARI shares of common stock per AMTG share of common stock and approximately $7.53 per share in cash. The cash portion of the consideration, and thus the total purchase price, is subject to adjustment based upon fluctuations in AMTG’s book value.
  5. The acquisition of RR Media (RRM) by SES for $242 million or $13.291 per share in cash.

Deal Updates:

  1. On February 23, 2016, Anadigics (ANAD) announced that it had received a further revised set of proposed amendments and agreements from II – VI Incorporated (IIVI), increasing its per share offer price to $0.81.
  2. On February 24, 2016, Anadigics (ANAD) announced that it had received from the competing bidder referred to as “Party B” a further amendment to its February 20, 2016 acquisition proposal that increases Party B’s per-share offer price from $0.81 to $0.85.  As provided in the II-VI Merger Agreement, and explained in the Company’s February 22, 2016 and February 23, 2016 announcements, II-VI has two business days by which to deliver to the Company an acquisition proposal that it believes would cause the February 24, 2016 Party B Proposed Merger Agreement to no longer constitute a Superior Offer.

Closed Deals:

  1. The acquisition of King Digital Entertainment (KING) by Activision Blizzard (ATVI) on February 23, 2016. It took 113 days for this deal to be completed.
  2. The acquisition of EZchip Semiconductor (EZCH) by Mellanox Technologies (MLNX) on February 23, 2016. It took 146 days for this deal to be completed.
  3. The acquisition of TeleCommunication Systems (TSYS) by Comtech Telecommunications (CMTL) on February 23, 2016. It took 92 days for this deal to be completed.
  4. The acquisition of Alcatel-Lucent (ALU) by Nokia Corporation (NOK) on February 26, 2016. It took 377 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$15.6406/30/2016178.13%532.94%
VSLR07/20/2015SunEdison, Inc. (SUNE)$15.25$7.9303/31/201692.31%1086.85%
ODP02/04/2015Staples, Inc. (SPLS)$9.33$5.1205/16/201682.16%389.44%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.3512/31/201626.27%31.33%
BHI11/16/2014Halliburton Company (HAL)$55.75$44.2504/30/201625.98%155.47%
CI07/24/2015Anthem, Inc. (ANTM)$171.66$141.2512/31/201621.53%25.68%
HUM07/03/2015Aetna Inc. (AET)$217.06$178.7112/31/201621.46%25.60%
SNDK10/21/2015Western Digital Corporation (WDC)$86.50$72.0809/30/201620.01%34.12%
CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)$55.37$46.3303/31/201619.51%229.74%
APOL02/08/2016A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A)$9.50$8.1112/31/201617.14%20.44%

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$15.6410,838,98106/30/2016178.13%532.94%
+VSLR07/20/2015SunEdison, Inc. (SUNE)Special Conditions$2.2 billion$15.25$7.931,744,85503/31/201692.31%1086.85%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$9.33$5.124,195,77105/16/201682.16%389.44%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.3528,05712/31/201626.27%31.33%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$55.75$44.252,425,34704/30/201625.98%155.47%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$171.66$141.251,132,76712/31/201621.53%25.68%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$217.06$178.711,276,19912/31/201621.46%25.60%
+SNDK10/21/2015Western Digital Corporation (WDC)Special Conditions$19 billion$86.50$72.085,241,09409/30/201620.01%34.12%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$46.331,400,73003/31/201619.51%229.74%
+APOL02/08/2016A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A)All Cash$1.1 billion$9.50$8.111,143,99012/31/201617.14%20.44%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$12.2 billion$79.88$69.251,286,22206/30/201615.35%45.92%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$29.15209,41306/30/201614.92%44.65%
+AGN11/23/2015Pfizer Inc. (PFE)All Stock$160 billion$341.60$298.073,400,46612/31/201614.60%17.42%
+NPBC08/17/2015BB&T Corporation (BBT)Special Conditions$1.8 billion$13.00$11.39601,66004/01/201614.14%161.23%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.968,312,05012/31/201613.07%15.58%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$22.56130,21704/30/201610.82%64.72%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.64494,25303/31/20169.89%116.45%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$35.673,275,34512/31/20169.06%10.80%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.00$12.924,755,19308/15/20168.37%18.19%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$24.74123,84606/30/20168.33%24.91%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$32.512,428,21506/30/20167.35%21.99%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$43.40$40.503,062,55012/31/20167.16%8.54%
+BXLT01/11/2016Shire plc (SHPG)Cash Plus Stock$32 billion$41.86$39.194,092,18306/30/20166.81%20.38%
+RNF08/10/2015CVR Partners, LP (UAN)Cash Plus Stock$840 million$9.77$9.2027,31904/30/20166.16%36.86%
+MTSN12/01/2015Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A)All Cash$300 million$3.80$3.59336,70403/31/20165.85%68.87%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.91$15.094,077,30112/31/20165.43%6.48%
+MY02/03/2016A consortium of investors (the �Buyer Consortium�), including Mr. Chuanwei Zhang , the Chairman and Chief Executive Officer of the Company (N/A)All Cash$408 million$2.51$2.39298,43706/30/20165.02%15.02%
+MCOX12/22/2015Minat Associated Co. Ltd. (N/A)All CashN/A$4.00$3.8183306/30/20164.99%14.92%
+DATE12/07/2015FutureWorld Inc. (N/A)All CashN/A$7.56$7.25198,77603/31/20164.28%50.34%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$16.452,458,01712/15/20164.19%5.28%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$53.781,076,05706/30/20164.13%12.35%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$36.82$35.413,788,93309/30/20163.97%6.77%
+ADT02/16/2016An Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management, LLC (N/A)All Cash$6.94 billion$42.00$40.403,320,65106/30/20163.96%11.85%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.4774,37906/30/20163.93%11.77%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$32.76636,83303/31/20173.79%3.49%
+BLT12/10/2015American Securities LLC and P2 Capital Partners, LLC (N/A)All Cash$855 million$10.00$9.64157,91706/30/20163.73%11.17%
+LF02/05/2016VTech Holdings Limited (N/A)All Cash$72 million$1.00$0.97151,62006/30/20163.09%9.25%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$15.69$15.2429,04506/30/20162.96%8.85%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$198.02$192.502,038,26006/30/20162.87%8.57%
+HMIN12/07/2015BTG Hotels Group (N/A)All CashN/A$35.80$34.871,235,99206/30/20162.67%7.98%
+HNT07/02/2015Centene Corp. (CNC)Cash Plus Stock$6.8 billion$64.13$62.531,913,92003/31/20162.55%30.07%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$20.39$19.891,734,76709/30/20162.53%4.32%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$26.6020,338,23703/31/20162.44%28.77%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$18.99$18.5434,20509/15/20162.44%4.47%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$25.0013,40309/30/20162.40%4.09%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$10.31$10.08406,94906/30/20162.30%6.88%
+RLD11/09/2015Rizvi Traverse Management, LLC (N/A)All Cash$551 million$11.00$10.791,021,46603/31/20161.95%22.92%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$64.81661,47112/31/20161.84%2.19%
+JAH12/14/2015Newell Rubbermaid Inc. (NWL)Cash Plus Stock$13 billion$54.33$53.411,621,07006/30/20161.73%5.17%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$13.07533,56208/15/20161.68%3.66%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$24.623,761,03312/15/20161.54%1.94%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$36.9558,98401/31/20161.49%0.00%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$9.59$9.451,418,84209/30/20161.48%2.52%
+BONA12/15/2015Mountain Tiger International Limited (N/A)All Cash$1 billion$13.70$13.51191,18906/30/20161.41%4.21%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$68.91$67.971,837,78306/30/20161.38%4.12%
+CBNJ01/05/2016OceanFirst Financial Corp. (OCFC)Cash Plus Stock$208.1 million$13.06$12.8832,44209/30/20161.36%2.33%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$6.01$5.9466,82803/31/20151.16%0.00%
+POWR02/24/2016Southern Company (SO)All Cash$431 million$18.75$18.551,659,04606/30/20161.08%3.23%
+SLH09/13/2015an affiliate of Vista Equity Partners (N/A)All Cash$6.5 billion$55.85$55.37802,38903/31/20160.87%10.21%
+CCG10/16/2015affiliates of Harrison Street Real Estate Capital, LLC (N/A)All Cash$1.9 billion$7.03$6.971,621,07003/31/20160.86%10.14%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.49471,85812/31/20160.86%1.02%
+ARG11/17/2015Air Liquide (N/A)All Cash$13.4 billion$143.00$141.81382,55203/31/20160.84%9.88%
+NEWP02/23/2016MKS Instruments, Inc. (MKSI)All Cash$980 million$23.00$22.811,735,84006/30/20160.83%2.49%
+YOKU11/06/2015Alibaba Group Holding Limited (BABA)All Cash$5.37 billion$27.60$27.39827,82903/31/20160.77%9.03%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.18225,10303/31/20160.76%8.98%
+ATML01/19/2016Microchip Technology Inc. (MCHP)Special Conditions$3.40 billion$8.15$8.098,217,99406/30/20160.74%2.22%
+HPY12/15/2015Global Payments Inc. (GPN)Cash Plus Stock$4.3 billion$94.47$93.85265,99605/31/20160.66%2.63%
+MR11/04/2015Excelsior Union Limited and Solid Union Limited (N/A)All Cash$3.3 billion$28.00$27.852,059,72103/31/20160.54%6.34%
+RIVR10/26/2015German American Bancorp Inc. (GABC)Cash Plus StockN/A$33.93$33.7521,55203/31/20160.54%6.34%
+CHEV11/24/2015MainSource Financial Group, Inc. (MSFG)All Stock$107.4 million$14.63$14.563,33609/30/20160.46%0.79%
+FRM11/02/2015Team, Inc. (TISI)All Stock$335 million$5.45$5.4365,38503/31/20160.45%5.32%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.18978,15309/30/20160.39%0.66%
+CAM08/26/2015Schlumberger Limited (SLB)Cash Plus Stock$14.8 billion$66.33$66.101,196,11803/31/20160.35%4.07%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.463,470,98406/30/20160.33%0.98%
+LSG02/08/2016Tahoe Resources Inc. (TAHO)All Stock$677 million$1.30$1.30325,17104/15/20160.32%2.54%
+LOJN02/01/2016CalAmp Corp. (CAMP)All Cash$134 million$6.45$6.43185,79505/31/20160.31%1.23%
+NBBC10/13/2015Yadkin Financial Corporation (YDKN)All Stock$456 million$11.39$11.35251,10206/30/20160.31%0.92%
+PRE08/03/2015EXOR S.p.A. (N/A)All Cash$6.9 billion$140.50$140.11303,43403/31/20160.28%3.28%
+ARPI12/03/2015American Homes 4 Rent (AMH)All Stock$1.5 billion$16.13$16.092,092,79706/30/20160.24%0.71%
+IRC12/15/2015real estate funds managed by DRA Advisors LLC (N/A)All Cash$2.3 billion$10.60$10.581,105,20506/30/20160.19%0.57%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$22.95$22.911,045,60206/30/20160.18%0.54%
+SIRO09/15/2015DENTSPLY International Inc. (XRAY)All Stock$5.51 billion$110.07$109.971,319,63703/31/20160.09%1.04%
+SFG07/23/2015Meiji Yasuda Life Insurance Company (N/A)All Cash$5 billion$115.00$114.93261,13103/31/20160.06%0.72%
+GMCR12/07/2015JAB Holding Company (N/A)All Cash$13.9 billion$92.00$91.952,701,34103/31/20160.05%0.64%
+DMND10/28/2015Snyder’s-Lance, Inc. (LNCE)Cash Plus Stock$1.91 billion$37.56$37.56219,98403/31/20160.01%0.11%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$12.94$12.9634,66303/31/2016-0.13%-1.54%
+JMG10/07/2015Gannett Co., Inc. (GCI)All Cash$280 million$12.00$12.0370,90703/31/2016-0.25%-2.94%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$20.06593,89703/03/2016-0.30%-36.39%
+AFFX01/26/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$1.3 billion$14.00$14.05478,73406/30/2016-0.36%-1.06%
+PULB12/03/2015First Busey Corporation (BUSE)All Stock$210.7 million$15.14$15.269,67606/30/2016-0.76%-2.27%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$62.24$62.791,405,95206/30/2016-0.87%-2.61%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$18.87$19.1540,26409/30/2016-1.47%-2.51%
+VBIV10/26/2015SciVac Therapeutics Inc. (SVACF)All StockN/A$2.02$2.0757,05203/31/2016-2.49%-29.34%
+HFFC11/30/2015Great Western Bancorp. Inc. (GWB)All Stock$139.5 million$16.32$16.9919,93506/30/2016-3.97%-11.89%
+ABCW01/12/2016Old National Bancorp. (ONB)All Stock461 million$40.40$42.0961,79106/30/2016-4.00%-11.98%
+ANAD01/19/2016II-VI Incorporated (IIVI)All Cash$61 million$0.81$0.848832,25203/31/2016-4.48%-52.76%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$3.92$4.3656,22802/20/2016-10.15%411.73%

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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