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Merger Arbitrage Mondays – March 21, 2016

  • March 20, 2016

Merger activity increased last week with five 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 201643
Total Number of Deals Not Completed in 20162
Total Number of Pending Deals
Cash Deals49
Stock Deals16
Stock & Cash Deals20
Special Conditions10
Total Number of Pending Deals95
Total Deal Size$933.58 billion

New Deals:

  1. The acquisition of The Fresh Market (TFM) by Apollo Global Management (APO) for $1.36 billion or $28.50 per share in cash.
  2. The acquisition of Rofin-Sinar Technologies (RSTI) by Coherent (COHR) for $942 million or $32.50 per share in cash.
  3. The acquisition of China Nepstar Chain Drugstore (NPD) by China Neptunus Drugstore Holding and Neptunus Global Limited for $258.66 million or $2.62 per share in cash.
  4. The acquisition of Columbia Pipeline Group (CPGX) by TransCanada Corporation (TRP) for approximately $13 billion or $25.50 per share in cash.
  5. The acquisition of The Valspar Corporation (VAL) by The Sherwin-Williams Company (SHW) for $11.3 billion or $113 per share in cash.

Deal Updates:

  1. On March 14, 2016, Starwood Hotels & Resorts Worldwide (HOT) announced that on March 10, 2016 it received a non-binding proposal from a consortium of companies (the “Consortium”) to acquire all of the outstanding shares of common stock of Starwood for $76.00 per share in cash. Starwood’s Board of Directors has not changed its recommendation in support of Starwood’s merger with Marriott. The Board, in consultation with its legal and financial advisors, will carefully consider the outcome of its discussions with the Consortium in order to determine the course of action that is in the best interest of Starwood and its stockholders.
  2. On March 18, 2016, Starwood Hotels & Resorts Worldwide (HOT) announced that it has received a revised binding and fully financed proposal from a consortium consisting of Anbang Insurance Group , J.C. Flowers & Co. and Primavera Capital Limited (the “Consortium”), that the Starwood Board of Directors, in consultation with its legal and financial advisors, has determined constitutes a “Superior Proposal,” as defined in Starwood’s merger agreement with Marriott International (MAR). Consistent with the terms of the Marriott merger agreement, Marriott has the right until 11:59 p.m. ET on March 28, 2016 to negotiate revisions to the existing merger agreement between Marriott and Starwood so that the proposal from the Consortium no longer constitutes a “Superior Proposal”.  Starwood will negotiate in good faith with Marriott during this period, and the Starwood Board will consider in good faith any changes to the Marriott agreement that Marriott may propose during this period.

Closed Deals:

  1. The acquisition of Anadigics (ANAD) by II-VI Incorporated (IIVI) on March 16, 2016. It took 57 days for this deal to be completed.
  2. The acquisition of PartnerRe (PRE) by EXOR S.p.A. on March 18, 2016. It took 228 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$18.1506/30/2016139.67%504.75%
ODP02/04/2015Staples, Inc. (SPLS)$9.44$5.7605/16/201663.85%416.19%
VAL03/20/2016The Sherwin-Williams Company (SHW)$113.00$83.8303/31/201734.80%33.87%
CI07/24/2015Anthem, Inc. (ANTM)$176.91$139.5312/31/201626.79%34.31%
BHI11/16/2014Halliburton Company (HAL)$59.66$47.4404/30/201625.75%234.97%
POM04/30/2014Exelon Corporation (EXC)$27.25$21.9703/31/201624.03%877.20%
AGN11/23/2015Pfizer Inc. (PFE)$332.79$268.7812/31/201623.81%30.50%
HUM07/03/2015Aetna Inc. (AET)$219.31$184.6012/31/201618.80%24.08%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.6612/31/201615.57%19.95%
CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)$55.37$48.3503/31/201614.52%529.95%

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$18.1515,449,74406/30/2016139.67%504.75%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$9.44$5.7610,089,14905/16/201663.85%416.19%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$83.831,386,78703/31/201734.80%33.87%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$176.91$139.531,145,99112/31/201626.79%34.31%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$59.66$47.445,375,62704/30/201625.75%234.97%
+POM04/30/2014Exelon Corporation (EXC)All Cash$7.2 billion$27.25$21.974,094,59303/31/201624.03%877.20%
+AGN11/23/2015Pfizer Inc. (PFE)All Stock$160 billion$332.79$268.786,276,65912/31/201623.81%30.50%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$219.31$184.60888,41312/31/201618.80%24.08%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.6655,52512/31/201615.57%19.95%
+CNL10/20/2014Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A)All Cash$4.7 billion$55.37$48.351,156,07503/31/201614.52%529.95%
+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$8.381,405,33412/31/201613.37%17.12%
+SNDK10/21/2015Western Digital Corporation (WDC)Special Conditions$19 billion$86.50$76.574,721,64509/30/201612.97%24.53%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.978,749,08212/31/201612.92%16.55%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$49.901,188,31606/30/201612.22%44.18%
+NPBC08/17/2015BB&T Corporation (BBT)Special Conditions$1.8 billion$13.00$11.734,421,04904/01/201610.83%359.26%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$6.41$5.7993,26803/31/201610.68%389.77%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.63169,93906/30/201610.19%36.84%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.32$13.29670,41608/15/20167.74%19.22%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$45.04$42.022,908,14412/31/20167.18%9.19%
+BXLT01/11/2016Shire plc (SHPG)Cash Plus Stock$32 billion$41.86$39.0614,354,96906/30/20167.16%25.87%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$36.353,507,25212/31/20167.02%8.98%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$32.797,256,57006/30/20166.43%23.25%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$38.67$36.565,280,26709/30/20165.76%10.89%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.5074,66709/30/20164.80%9.08%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.99$15.301,427,16912/31/20164.51%5.78%
+MTSN12/01/2015Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A)All Cash$300 million$3.80$3.66281,43703/31/20163.83%139.62%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$31.331,782,99312/31/20163.73%4.78%
+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$2.421,290,71206/30/20163.72%13.44%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$32.42948,98906/30/20163.33%12.04%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$10.85$10.50953,13506/30/20163.30%11.92%
+PULB12/03/2015First Busey Corporation (BUSE)All Stock$210.7 million$16.56$16.0329,14206/30/20163.30%11.91%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$24.21130,81404/30/20163.26%29.78%
+MCOX12/22/2015Minat Associated Co. Ltd. (N/A)All CashN/A$4.00$3.8815,75606/30/20163.09%11.18%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$208.72$202.903,094,64506/30/20162.87%10.37%
+DATE12/07/2015FutureWorld Inc. (N/A)All CashN/A$7.56$7.3690,13403/31/20162.72%99.18%
+CPGX03/17/2016TransCanada Corporation (TRP)All Cash$13 billion$25.50$24.8470,723,05512/31/20162.66%3.40%
+ATNY02/29/2016an affiliate of private equity firm J. F. Lehman & Company (N/A)All Cash$110 million$2.00$1.95528,32606/30/20162.56%9.27%
+HNT07/02/2015Centene Corp. (CNC)Cash Plus Stock$6.8 billion$64.66$63.10955,58103/31/20162.48%90.35%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$64.502,144,68212/31/20162.33%2.98%
+ADT02/16/2016An Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management, LLC (N/A)All Cash$6.94 billion$42.00$41.083,534,64206/30/20162.24%8.09%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.70115,86106/30/20162.19%7.91%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.30362,24303/31/20172.10%2.05%
+FCTY03/10/2016Midland Financial Co. (N/A)All CashN/A$11.22$10.99139,58712/31/20162.09%2.68%
+CBNJ01/05/2016OceanFirst Financial Corp. (OCFC)Cash Plus Stock$208.1 million$13.51$13.2943,02509/30/20161.69%3.20%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$21.63$21.283,571,62909/30/20161.66%3.13%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$26.37200,73906/30/20161.63%5.89%
+VBIV10/26/2015SciVac Therapeutics Inc. (SVACF)All StockN/A$2.50$2.4684,47403/31/20161.50%54.90%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$13.105,96708/15/20161.45%3.60%
+CHEV11/24/2015MainSource Financial Group, Inc. (MSFG)All Stock$107.4 million$15.13$14.9283809/30/20161.42%2.69%
+LF02/05/2016VTech Holdings Limited (N/A)All Cash$72 million$1.00$0.986629,76106/30/20161.42%5.13%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$10.05$9.915,522,91209/30/20161.36%2.58%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$24.693,102,06412/15/20161.26%1.70%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$29.691,345,61812/31/20161.04%1.34%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$19.64$19.44131,23909/15/20161.01%2.07%
+ARG11/17/2015Air Liquide (N/A)All Cash$13.4 billion$143.00$141.571,056,07608/15/20161.01%2.51%
+BLT12/10/2015American Securities LLC and P2 Capital Partners, LLC (N/A)All Cash$855 million$10.00$9.90421,39106/30/20161.01%3.65%
+CAM08/26/2015Schlumberger Limited (SLB)Cash Plus Stock$14.8 billion$67.08$66.422,337,73603/31/20160.99%36.29%
+HMIN12/07/2015BTG Hotels Group (N/A)All CashN/A$35.80$35.47731,58306/30/20160.93%3.36%
+BONA12/15/2015Mountain Tiger International Limited (N/A)All Cash$1 billion$13.70$13.58319,04306/30/20160.88%3.19%
+JAH12/14/2015Newell Rubbermaid Inc. (NWL)Cash Plus Stock$13 billion$58.05$57.563,479,74106/30/20160.85%3.07%
+JMI03/02/2016ARMOUR Residential REIT, Inc. (ARR)Special Conditions$84.7 million$7.14$7.08223,75006/30/20160.85%3.06%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.001,494,86712/15/20160.82%1.12%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$37.2069,37603/31/20160.81%29.44%
+HPY12/15/2015Global Payments Inc. (GPN)Cash Plus Stock$4.3 billion$92.97$92.23323,10005/31/20160.80%4.11%
+POWR02/24/2016Southern Company (SO)All Cash$431 million$18.75$18.61636,78206/30/20160.75%2.72%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$71.71$71.181,461,22406/30/20160.74%2.69%
+NEWP02/23/2016MKS Instruments, Inc. (MKSI)All Cash$980 million$23.00$22.87627,45606/30/20160.57%2.05%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$23.77$23.65715,88406/30/20160.52%1.88%
+HFFC11/30/2015Great Western Bancorp. Inc. (GWB)All Stock$139.5 million$17.93$17.8412,99106/30/20160.49%1.76%
+RLD11/09/2015Rizvi Traverse Management, LLC (N/A)All Cash$551 million$11.00$10.95684,78603/31/20160.46%16.67%
+YOKU11/06/2015Alibaba Group Holding Limited (BABA)All Cash$5.37 billion$27.60$27.481,133,51103/31/20160.44%15.94%
+ATML01/19/2016Microchip Technology Inc. (MCHP)Special Conditions$3.40 billion$8.15$8.124,848,86106/30/20160.37%1.34%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.465,647,77006/30/20160.33%1.18%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$16.61$16.5697,84006/30/20160.30%1.07%
+JMG10/07/2015Gannett Co., Inc. (GCI)All Cash$280 million$12.00$11.9794,49703/31/20160.25%9.15%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.23522,73103/31/20160.22%7.91%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.90957,94512/31/20160.17%0.21%
+LOJN02/01/2016CalAmp Corp. (CAMP)All Cash$134 million$6.45$6.44307,26305/31/20160.16%0.80%
+IRC12/15/2015real estate funds managed by DRA Advisors LLC (N/A)All Cash$2.3 billion$10.60$10.591,076,34506/30/20160.09%0.34%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.25577,70709/30/20160.00%0.00%
+LSG02/08/2016Tahoe Resources Inc. (TAHO)All Stock$677 million$1.63$1.63568,46704/15/2016-0.01%-0.15%
+TFM03/14/2016Apollo Global Management, LLC (APO)All Cash$1.36 billion$28.50$28.523,497,41606/30/2016-0.07%-0.25%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$20.041,199,43103/17/2016-0.20%18.21%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$65.11$65.331,198,82606/30/2016-0.34%-1.22%
+CKP03/02/2016an affiliate of CCL Industries Inc. (N/A)All Cash$443 million$10.15$10.211,085,75309/30/2016-0.59%-1.11%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.92520,03806/30/2016-0.63%-2.28%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$12.2 billion$79.88$80.5724,684,97506/30/2016-0.86%-3.09%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$13.16$13.3343,96503/31/2016-1.29%-47.10%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$15.45$15.7082,86009/30/2016-1.60%-3.03%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$26.1020,53609/30/2016-1.92%-3.62%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$18.95$19.4048,22409/30/2016-2.34%-4.42%
+RNF08/10/2015CVR Partners, LP (UAN)Cash Plus Stock$840 million$9.85$10.10187,29604/30/2016-2.48%-22.59%
+ABCW01/12/2016Old National Bancorp. (ONB)All Stock461 million$43.00$44.2994,59206/30/2016-2.92%-10.55%
+AFFX01/26/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$1.3 billion$14.00$15.9913,714,73306/30/2016-12.45%-44.98%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.36$5.411,642,19803/31/2015-19.36%19.85%

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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