Merger Arbitrage Mondays – March 14, 2016

  • March 13, 2016

Merger activity decreased last week with two new deals announced. None of the pending deals closed last week.

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 201641
Total Number of Deals Not Completed in 20162
Total Number of Pending Deals
Cash Deals46
Stock Deals16
Stock & Cash Deals20
Special Conditions10
Total Number of Pending Deals92
Total Deal Size$906.72 billion

New Deals:

  1. The acquisition of 1st Century Bancshares (FCTY) by Midland Financial for $11.22 per share in cash.
  2. The acquisition of Laporte Bancorp (LPSB) by Horizon Bancorp (HBNC) for $94.1 million in a cash or stock deal. Under the terms of the agreement, shareholders of Laporte Bancorp will have the option to receive $17.50 per share in cash or 0.629 shares of Horizon common stock, or a combination of both, for each share of LaPorte Bancorp’s common stock. LaPorte Bancorp shareholders will receive total consideration that consists of 65% stock and 35% cash. We are going to treat this as an all-stock deal in our Merger Arbitrage tool.

Deal Updates:

  1. On March 9, 2016, Vivint Solar (VSLR) announced that it has terminated a deal to be taken over by SunEdison (SUNE).
  2. On March 7, 2016, Fuel Systems (FSYS) signed an amendment to the Merger Agreement with Westport (WPRT). In light of current market volatility, the exchange ratio of the Merger Agreement has been amended to include a collar mechanism in order to provide Fuel Systems stockholders with greater certainty regarding the consideration they will receive upon closing of the Merger. In the event that the NASDAQ volume weighted average price of Westport common shares during a specified measuring period (“VWAP”) is equal to or greater than $2.37, then Fuel Systems stockholders will receive 2.129 Westport common shares per Fuel Systems share on closing of the Merger and through the exchange process. In the event Westport’s VWAP is equal to or less than $1.64, Fuel Systems stockholders would receive approximately 3.08 Westport common shares per Fuel Systems share on closing of the merger and through the exchange process. In the event that Westport’s VWAP is greater than $1.64 and less than $2.37, then Fuel Systems stockholders would receive a number of Westport common shares per Fuel Systems share equal to dividing $5.05 by Westport’s VWAP, rounded to four decimal places. The measuring period will be the ten consecutive trading days ending on and including the trading day five business days prior to the anticipated closing date. The Merger currently is anticipated to close in late March 2016. Since WPRT is currently trading over $2.37 and the deal is supposed to close in the next few days, we are not making any adjustment to the deal terms in our tool.
  3. On March 11, 2016, the District of Columbia officials said that they continue to oppose a proposal by power companies Exelon (EXC) and Pepco (POM) to salvage their $6.8 billion merger, but the deal isn’t dead yet, the companies said.

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$16.0106/30/2016171.71%580.30%
ODP02/04/2015Staples, Inc. (SPLS)$9.38$5.28505/16/201677.55%449.27%
BHI11/16/2014Halliburton Company (HAL)$59.45$45.7904/30/201629.84%231.75%
POM04/30/2014Exelon Corporation (EXC)$27.25$22.0703/31/201623.47%503.93%
CI07/24/2015Anthem, Inc. (ANTM)$177.13$144.6212/31/201622.48%28.10%
CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)$55.37$46.9003/31/201618.06%387.75%
HUM07/03/2015Aetna Inc. (AET)$220.03$186.9112/31/201617.72%22.15%
AGN11/23/2015Pfizer Inc. (PFE)$344.65$298.7012/31/201615.38%19.23%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.6712/31/201615.26%19.07%
HOT11/16/2015Marriott International, Inc. (MAR)$79.88$70.4206/30/201613.43%45.40%

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$16.0112,218,25806/30/2016171.71%580.30%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$9.38$5.2854,645,72405/16/201677.55%449.27%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$59.45$45.793,679,53204/30/201629.84%231.75%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$22.0716,619,53703/31/201623.47%503.93%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$177.13$144.621,014,70912/31/201622.48%28.10%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$46.901,018,47803/31/201618.06%387.75%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$220.03$186.91724,43812/31/201617.72%22.15%
+AGN11/23/2015Pfizer Inc. (PFE)All Stock$160 billion$344.65$298.702,354,32512/31/201615.38%19.23%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.67130,72812/31/201615.26%19.07%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$12.2 billion$79.88$70.423,904,14406/30/201613.43%45.40%
+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$8.38687,57212/31/201613.37%16.71%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.9717,438,45612/31/201612.92%16.15%
+SNDK10/21/2015Western Digital Corporation (WDC)Special Conditions$19 billion$86.50$76.704,486,20809/30/201612.78%23.32%
+NPBC08/17/2015BB&T Corporation (BBT)Special Conditions$1.8 billion$13.00$11.701,047,99304/01/201611.11%225.31%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.70301,25306/30/20168.11%27.40%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$36.192,391,02412/31/20167.49%9.36%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.23$13.25647,24808/15/20167.41%17.55%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$31.22196,81006/30/20167.30%24.68%
+VBIV10/26/2015SciVac Therapeutics Inc. (SVACF)All StockN/A$2.50$2.3392,20903/31/20167.17%153.89%
+BXLT01/11/2016Shire plc (SHPG)Cash Plus Stock$32 billion$41.99$39.406,423,53306/30/20166.58%22.22%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$32.892,234,21406/30/20166.11%20.65%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$45.41$42.91975,90312/31/20165.82%7.28%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$25.42249,26506/30/20165.43%18.35%
+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$2.39474,84906/30/20165.02%16.97%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$53.401,221,34706/30/20164.87%16.46%
+MCOX12/22/2015Minat Associated Co. Ltd. (N/A)All CashN/A$4.00$3.8277506/30/20164.71%15.92%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$16.38$15.78692,38812/31/20163.80%4.75%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$5.90$5.6936,23703/31/20163.64%78.23%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$24.1897,88904/30/20163.39%26.34%
+MTSN12/01/2015Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A)All Cash$300 million$3.80$3.68481,45003/31/20163.26%70.01%
+FCTY03/10/2016Midland Financial Co. (N/A)All CashN/A$11.22$10.873,469,13312/31/20163.22%4.02%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$201.48$195.911,294,40906/30/20162.84%9.61%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$37.27$36.281,620,80609/30/20162.74%4.99%
+LSG02/08/2016Tahoe Resources Inc. (TAHO)All Stock$677 million$1.48$1.44543,73704/15/20162.69%30.68%
+ATNY02/29/2016an affiliate of private equity firm J. F. Lehman & Company (N/A)All Cash$110 million$2.00$1.95224,80206/30/20162.56%8.67%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$16.39$15.9913,52406/30/20162.49%8.42%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$19.68$19.2171,00909/15/20162.46%4.86%
+DATE12/07/2015FutureWorld Inc. (N/A)All CashN/A$7.56$7.3817,43303/31/20162.44%52.37%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.6977,12906/30/20162.26%7.65%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$64.70794,71712/31/20162.01%2.51%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$10.70$10.51244,07906/30/20161.80%6.07%
+HNT07/02/2015Centene Corp. (CNC)Cash Plus Stock$6.8 billion$65.99$64.87872,10103/31/20161.72%36.96%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$13.0844,20408/15/20161.61%3.81%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.48391,34403/31/20171.55%1.48%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$9.93$9.781,042,83809/30/20161.53%2.79%
+ADT02/16/2016An Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management, LLC (N/A)All Cash$6.94 billion$42.00$41.402,188,76606/30/20161.45%4.90%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$21.89$21.582,930,05009/30/20161.44%2.63%
+BLT12/10/2015American Securities LLC and P2 Capital Partners, LLC (N/A)All Cash$855 million$10.00$9.86931,84806/30/20161.42%4.80%
+RNF08/10/2015CVR Partners, LP (UAN)Cash Plus Stock$840 million$10.09$9.9533,89104/30/20161.40%10.86%
+LF02/05/2016VTech Holdings Limited (N/A)All Cash$72 million$1.00$0.987235,54106/30/20161.32%4.45%
+JAH12/14/2015Newell Rubbermaid Inc. (NWL)Cash Plus Stock$13 billion$56.48$55.754,261,12706/30/20161.31%4.42%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$70.09$69.221,433,03506/30/20161.25%4.22%
+CHEV11/24/2015MainSource Financial Group, Inc. (MSFG)All Stock$107.4 million$14.87$14.694,89009/30/20161.22%2.23%
+CBNJ01/05/2016OceanFirst Financial Corp. (OCFC)Cash Plus Stock$208.1 million$13.35$13.1946,08309/30/20161.20%2.20%
+ARG11/17/2015Air Liquide (N/A)All Cash$13.4 billion$143.00$141.57993,55303/31/20161.01%21.69%
+HMIN12/07/2015BTG Hotels Group (N/A)All CashN/A$35.80$35.46500,51406/30/20160.96%3.24%
+HFFC11/30/2015Great Western Bancorp. Inc. (GWB)All Stock$139.5 million$18.11$17.9515,23806/30/20160.89%2.99%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$37.1917,05303/31/20160.83%17.90%
+POWR02/24/2016Southern Company (SO)All Cash$431 million$18.75$18.62571,46206/30/20160.70%2.36%
+BONA12/15/2015Mountain Tiger International Limited (N/A)All Cash$1 billion$13.70$13.61254,71106/30/20160.66%2.23%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.04757,91112/15/20160.59%0.78%
+JMI03/02/2016ARMOUR Residential REIT, Inc. (ARR)Special Conditions$84.7 million$7.14$7.10261,88606/30/20160.56%1.90%
+RLD11/09/2015Rizvi Traverse Management, LLC (N/A)All Cash$551 million$11.00$10.941,377,27503/31/20160.55%11.78%
+HPY12/15/2015Global Payments Inc. (GPN)Cash Plus Stock$4.3 billion$93.51$93.00252,91905/31/20160.55%2.56%
+YOKU11/06/2015Alibaba Group Holding Limited (BABA)All Cash$5.37 billion$27.60$27.451,423,03803/31/20160.55%11.73%
+CAM08/26/2015Schlumberger Limited (SLB)Cash Plus Stock$14.8 billion$68.14$67.771,886,29403/31/20160.55%11.72%
+PULB12/03/2015First Busey Corporation (BUSE)All Stock$210.7 million$15.93$15.847,53306/30/20160.55%1.84%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$24.891,811,98312/15/20160.44%0.58%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.431,932,46006/30/20160.44%1.48%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.21122,18703/31/20160.43%9.32%
+ATML01/19/2016Microchip Technology Inc. (MCHP)Special Conditions$3.40 billion$8.15$8.125,620,65406/30/20160.37%1.25%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.78256,49312/31/20160.37%0.46%
+NEWP02/23/2016MKS Instruments, Inc. (MKSI)All Cash$980 million$23.00$22.93326,95206/30/20160.31%1.03%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$23.52$23.45806,89906/30/20160.29%1.00%
+JMG10/07/2015Gannett Co., Inc. (GCI)All Cash$280 million$12.00$11.9765,42403/31/20160.25%5.38%
+ANAD01/19/2016II-VI Incorporated (IIVI)All Cash$61 million$0.85$0.848346,70903/31/20160.24%5.06%
+PRE08/03/2015EXOR S.p.A. (N/A)All Cash$6.9 billion$140.50$140.341,268,27403/31/20160.11%2.45%
+IRC12/15/2015real estate funds managed by DRA Advisors LLC (N/A)All Cash$2.3 billion$10.60$10.59757,63406/30/20160.09%0.32%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$25.5826,26009/30/20160.08%0.14%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$20.00896,19803/17/20160.00%0.00%
+AFFX01/26/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$1.3 billion$14.00$14.00669,17206/30/20160.00%0.00%
+LOJN02/01/2016CalAmp Corp. (CAMP)All Cash$134 million$6.45$6.45128,16305/31/20160.00%0.00%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$30.00698,70712/31/20160.00%0.00%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.28187,10109/30/2016-0.16%-0.30%
+CKP03/02/2016an affiliate of CCL Industries Inc. (N/A)All Cash$443 million$10.15$10.19748,79109/30/2016-0.39%-0.72%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$64.36$64.79729,68406/30/2016-0.66%-2.24%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$27.131,569,28606/30/2016-1.40%-4.73%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$12.89$13.0915,85303/31/2016-1.55%-33.28%
+ABCW01/12/2016Old National Bancorp. (ONB)All Stock461 million$43.35$44.16214,34606/30/2016-1.83%-6.19%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$18.94$19.3025,57509/30/2016-1.88%-3.44%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$14.54$15.20415,94909/30/2016-4.37%-7.97%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.95$5.6481,45403/31/2015-12.29%12.85%

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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