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Merger Arbitrage Mondays – April 18, 2016

  • April 17, 2016

Merger activity decreased last week with two new deals announced and four closing.

With anywhere from 80 to 100 active deals, it can get challenging to stay on top of all of them. One of the advantages of sharing information with investors that follow this strategy is the feedback we receive from time to time that helps us stay on top of updates to deals. I am thankful to several investors who have reached out over the last few weeks to help us update some closing dates or to notify us of deals we might have otherwise missed.

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 201664
Total Number of Deals Not Completed in 20163
Total Number of Pending Deals
Cash Deals41
Stock Deals17
Stock & Cash Deals19
Special Conditions6
Total Number of Pending Deals83
Total Deal Size$784.54 billion

New Deals:

  1. The acquisition of Hatteras Financial (HTS) by Annaly Capital Management (NLY) for $1.5 billion in a cash or stock deal. Under the terms of the agreement, Hatteras shareholders may elect to receive: (a) $5.55 in cash and 0.9894 shares of Annaly common stock; (b) $15.85 in cash (the “Cash Consideration Option”); or (c) 1.5226 shares of Annaly common stock (the “Stock Consideration Option”).  Hatteras shareholders who elect the Cash Consideration Option or Stock Consideration Option will be subject to proration, in each of the exchange offer and the subsequent second step merger, so that the aggregate consideration will consist of approximately 65% of Annaly’s common stock and approximately 35% in cash.
  2. The acquisition of Polycom (PLCM) by Mitel Networks Corporation (MITL) for $1.96 billion in a cash plus stock deal. Under the terms of the agreement, Polycom stockholders will be entitled to $3.12 in cash and 1.31 Mitel common shares for each share of Polycom common stock.

Deal Updates:

  1. On April 14, 2016, The Williams Companies (WMB) announced that the Delaware Court of Chancery had granted Williams’ motion to expedite the litigation commenced by Williams against Energy Transfer Equity (ETE) challenging the private offering of Series A Convertible Preferred Units that ETE disclosed on March 9, 2016.
  2. On April 15, 2016, Shenandoah Telecommunications Company (SHEN) announced that the Federal Communications Commission (FCC) approved Shentel’s proposed acquisition of NTELOS Holdings (NTLS). Shentel anticipates that the transactions will close within the next few weeks, subject to the remaining closing conditions.

Closed Deals:

  1. The acquisition of Blount International (BLT) by American Securities and P2 Capital Partners on April 12, 2016. It took 124 days for this deal to be completed.
  2. The acquisition of Cleco Corporation (CNL) by Macquarie Infrastructure and Real Assets and British Columbia Investment Management Corporation on April 13, 2016. It took 541 days for this deal to be completed.
  3. The acquisition of Mecox Lane Limited (MCOX) by Minat Associated on April 14, 2016. It took 114 days for this deal to be completed.
  4. The acquisition of Jarden (JAH) by Newell Rubbermaid (NWL) on April 14, 2016. It took 123 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$17.5506/30/2016147.86%739.32%
BHI11/16/2014Halliburton Company (HAL)$61.86$43.8004/30/201641.24%1254.33%
ODP02/04/2015Staples, Inc. (SPLS)$9.69$7.4405/16/201630.24%394.16%
CI07/24/2015Anthem, Inc. (ANTM)$177.03$136.6512/31/201629.55%41.96%
HUM07/03/2015Aetna Inc. (AET)$216.97$169.8712/31/201627.72%39.38%
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$7.6112/31/201624.84%35.27%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.5212/31/201620.17%28.65%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$7.9712/31/201612.92%18.35%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$49.8712/31/201612.29%17.46%
BXLT01/11/2016Shire plc (SHPG)$44.93$40.5106/30/201610.91%54.53%

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$17.556,250,87406/30/2016147.86%739.32%
+BHI11/16/2014Halliburton Company (HAL)Cash Plus StockN/A$61.86$43.803,448,91104/30/201641.24%1254.33%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$9.69$7.448,904,90305/16/201630.24%394.16%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$177.03$136.651,590,85012/31/201629.55%41.96%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$216.97$169.87868,45712/31/201627.72%39.38%
+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$7.611,241,65412/31/201624.84%35.27%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.529,93512/31/201620.17%28.65%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.9710,957,98312/31/201612.92%18.35%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$49.87733,07012/31/201612.29%17.46%
+BXLT01/11/2016Shire plc (SHPG)Cash Plus Stock$32 billion$44.93$40.515,979,85706/30/201610.91%54.53%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.65190,38006/30/20169.59%47.95%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$35.591,173,86812/31/20169.30%13.21%
+KUTV04/05/2016Shanda Investment Holdings Limited (N/A)All CashN/A$1.08$1.00213,14612/31/20168.00%11.36%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$38.97$36.791,481,75309/30/20165.94%13.13%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$45.69$43.17794,43912/31/20165.84%8.29%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.4847,93109/30/20165.65%12.49%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$107.04835,63303/31/20175.57%5.86%
+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$2.39446,23406/30/20165.02%25.10%
+MTSN12/01/2015Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A)All Cash$300 million$3.80$3.64107,68206/30/20164.40%21.98%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.18$13.61186,11808/15/20164.20%12.87%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$33.599,280,66106/30/20163.90%19.50%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$16.14$15.58410,00312/31/20163.59%5.10%
+PLCM04/15/2016Mitel Networks Corporation (MITL)Cash Plus Stock$1.96 billlion$12.45$12.0218,811,35109/30/20163.55%7.86%
+VBIV10/26/2015SciVac Therapeutics Inc. (SVACF)All StockN/A$2.50$2.42134,76704/30/20163.18%96.78%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$26.00655,27806/30/20163.08%15.38%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$18.55$18.015,32312/31/20163.01%4.27%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$11.07$10.77246,09706/30/20162.80%14.00%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$55.50924,06201/01/20172.70%3.82%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$32.70341,93306/30/20162.45%12.23%
+FCTY03/10/2016Midland Financial Co. (N/A)All CashN/A$11.22$10.9616,75012/31/20162.37%3.37%
+IHS03/21/2016Markit Ltd. (MRKT)All StockN/A$126.33$123.48270,83312/31/20162.31%3.28%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$209.84$205.441,617,52006/30/20162.14%10.70%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.7357,24906/30/20161.97%9.83%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$13.041,58108/15/20161.92%5.88%
+SNDK10/21/2015Western Digital Corporation (WDC)Cash Plus Stock$19 billion$77.16$75.763,218,10906/30/20161.85%9.27%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.42179,16403/31/20171.74%1.83%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$20.42$20.0961,89009/15/20161.63%3.97%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$24.6238,32304/30/20161.54%46.95%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$18.03$17.7733,02606/30/20161.47%7.34%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$32.07120,66012/31/20161.34%1.90%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$16.93616,29112/15/20161.24%1.88%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$37.0628,52206/30/20161.19%5.94%
+PULB12/03/2015First Busey Corporation (BUSE)All Stock$210.7 million$16.37$16.2014,23906/30/20161.04%5.21%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$65.38344,14712/31/20160.95%1.35%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$10.26$10.161,888,60009/30/20160.94%2.09%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$22.08$21.90990,46009/30/20160.82%1.81%
+DATE12/07/2015FutureWorld Inc. (N/A)All CashN/A$7.56$7.5030,11104/30/20160.80%24.33%
+VSCP03/25/2016BioTelemetry, Inc. (BEAT)All Cash$15.5 million$4.05$4.0215,52205/09/20160.75%12.97%
+ARG11/17/2015Air Liquide (N/A)All Cash$13.4 billion$143.00$142.00526,29608/15/20160.70%2.16%
+ADT02/16/2016An Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management, LLC (N/A)All Cash$6.94 billion$42.00$41.712,269,59606/30/20160.70%3.48%
+ATNY02/29/2016an affiliate of private equity firm J. F. Lehman & Company (N/A)All Cash$110 million$2.00$1.99227,81706/30/20160.50%2.51%
+CBNJ01/05/2016OceanFirst Financial Corp. (OCFC)Cash Plus Stock$208.1 million$13.79$13.7343,74009/30/20160.43%0.95%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$72.82$72.53486,45006/30/20160.40%2.00%
+CPGX03/17/2016TransCanada Corporation (TRP)All Cash$13 billion$25.50$25.415,893,12912/31/20160.35%0.50%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.80401,59312/31/20160.33%0.47%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.67649,46806/30/20160.30%1.50%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.23156,08604/30/20160.22%6.59%
+POWR02/24/2016Southern Company (SO)All Cash$431 million$18.75$18.72235,75106/30/20160.16%0.80%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.98365,79304/14/20160.10%0.00%
+HFFC11/30/2015Great Western Bancorp. Inc. (GWB)All Stock$139.5 million$18.82$18.8127,33106/30/20160.07%0.37%
+HPY12/15/2015Global Payments Inc. (GPN)Cash Plus Stock$4.3 billion$103.89$103.82304,09005/31/20160.07%0.60%
+TFM03/14/2016Apollo Global Management, LLC (APO)All Cash$1.36 billion$28.50$28.482,750,44106/30/20160.07%0.35%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$22.90$22.89961,75006/30/20160.06%0.30%
+SLI04/07/2016Handy & Harman Ltd. (HNH)All Cash$166.32 million$40.00$39.9820,88406/30/20160.05%0.25%
+NEWP02/23/2016MKS Instruments, Inc. (MKSI)All Cash$980 million$23.00$23.00262,96306/30/20160.00%0.00%
+AFOP04/07/2016Corning Inc. (GLW)All Cash$305 million$18.50$18.51580,32206/30/2016-0.05%-0.27%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$25.021,087,03512/15/2016-0.08%-0.12%
+RKUS04/04/2016Brocade Communications Systems, Inc. (BRCD)Cash Plus Stock$1.2 billion$13.49$13.51824,62307/31/2016-0.13%-0.45%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$30.06692,83312/31/2016-0.20%-0.28%
+CHEV11/24/2015MainSource Financial Group, Inc. (MSFG)All Stock$107.4 million$14.79$14.8432,81109/30/2016-0.36%-0.80%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.32143,94809/30/2016-0.38%-0.85%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$5.43$5.4518,53303/31/2016-0.39%7.83%
+CKP03/02/2016an affiliate of CCL Industries Inc. (N/A)All Cash$443 million$10.15$10.19143,43809/30/2016-0.39%-0.87%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.691,031,45206/30/2016-0.51%-2.53%
+HTS04/11/2016Annaly Capital Management, Inc. (NLY)All Stock$1.5 billion$15.85$15.941,334,92009/30/2016-0.56%-1.25%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$13.38$13.4883,05603/31/2016-0.73%14.80%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$63.72$64.28500,63006/30/2016-0.88%-4.38%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$80.393,573,25606/30/2016-1.07%-5.35%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$19.20$19.699,85009/30/2016-2.49%-5.51%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$15.45$15.876,27509/30/2016-2.62%-5.79%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$26.439,60009/30/2016-3.14%-6.95%
+ABCW01/12/2016Old National Bancorp. (ONB)All Stock461 million$44.56$46.10216,08006/30/2016-3.34%-16.72%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.81$7.0762,88503/31/2015-31.91%30.33%

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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