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Merger Arbitrage Mondays – May 2, 2016

  • May 1, 2016

Merger activity increased last week with eight new deals announced and two deals 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 201667
Total Number of Deals Not Completed in 20164
Total Number of Pending Deals
Cash Deals46
Stock Deals19
Stock & Cash Deals18
Special Conditions7
Total Number of Pending Deals90
Total Deal Size$824.67 billion

New Deals:

  1. The acquisition of First Clover Leaf Financial (FCLF) by First Mid-Illinois Bancshares (FMBH) for $90 million in a cash or stock deal. Under the terms of the agreement, shareholders of First Clover Leaf’s stockholders may elect to exchange each share of First Clover Leaf common stock for either $12.87 in cash or .495 of a share of First Mid common stock, subject to certain potential adjustments. Overall elections are subject to proration such that 25 percent of the First Clover Leaf shares will be exchanged for cash and 75 percent for First Mid stock. We are treating this as an all stock deal.
  2. The acquisition of ExamWorks Group (EXAM) by an affiliate of Leonard Green & Partners for $2.2 billion or $35.05 per share in cash.
  3. The acquisition of St. Jude Medical (STJ) by Abbott Laboratories (ABT) for $25 billion in a cash plus stock deal. Under the terms of the agreement, St. Jude Medical shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock.
  4. The acquisition of Textura Corporation (TXTR) by Oracle Corporation (ORCL) for $663 million or $26.00 per share in cash.
  5. The acquisition of Parkway Properties (PKY) by Cousins Properties Incorporated (CUZ) for $1.95 billion in an all stock deal. Under the terms of the agreement, Parkway shareholders will receive 1.63 shares of Cousins stock for each share of Parkway stock they own.
  6. The acquisition of DreamWorks Animation SKG (DWA) by NBCUniversal for $3.8 billion or $41.00 per share in cash.
  7. The acquisition of National Holdings Corporation (NHLD) by Fortress Biotech (FBIO) for $3.25 per share in cash.
  8. The acquisition of TiVo (TIVO) by Rovi Corporation (ROVI) for $1.1 billion in a cash and stock deal. Under the terms of the agreement, Rovi will pay $2.75 per share in cash, or approximately $277 million, subject to adjustment as described under the collar mechanism. The remainder, $7.95 per share, will be paid in shares of common stock of a new holding company that will own both Rovi and TiVo. The stock consideration is subject to a two-way collar between Average Rovi Stock Prices of $16.00 and $25.00. If Rovi’s stock price increases between the agreement date and the closing, TiVo stockholders will receive fewer shares (a lower exchange ratio) until the Average Rovi Stock Price reaches $25.00, at which point the exchange ratio will be fixed at 0.3180 per share. Conversely, if Rovi’s share price decreases between signing and closing, TiVo stockholders will receive more shares (a higher exchange ratio) until the Average Rovi Stock Price reaches $18.71. Between an Average Rovi Stock Price of $18.71 (exchange ratio of 0.4250 per share) and $16.00 (exchange ratio of 0.4969 per share), Rovi has the option to pay additional cash instead of issuing more shares. If the Average Rovi Stock Price is below $16.00, Rovi may set the exchange ratio, in its sole discretion, between 0.4250 and 0.4969. If Rovi makes this election, the per share cash amount will be $10.70 minus the product of the Average Rovi Stock Price and the applicable exchange ratio that Rovi elects. In no event will the cash amount be more than $3.90 per share.

Deal Updates:

  1. On April 14, 2016, VBI Vaccines (VBIVscheduled a special meeting for its stockholders on Thursday, May 5, 2016. We are moving the closing date for the deal to May 31, 2016.
  2. On April 28, 2016, Apollo Education Group (APOL) announced that the Special Meeting of Shareholders has been adjourned to May 6, 2016 in order to provide additional time for shareholders to vote.Of the Class A shares voted to date, nearly 58% voted FOR the proposed transaction. However, the favorable vote of a majority of all outstanding Class A shares is required to adopt this proposal, and the votes to date in favor of the transaction do not yet constitute a majority of the outstanding shares.
  3. On April 29, 2016, Anchor BanCorp Wisconsin (ABCW), the parent holding company of AnchorBank announced that Anchor stockholders voted to adopt the Agreement and Plan of Merger between Anchor and Old National Bancorp (ONB) and to approve, on an advisory, non-binding basis, the merger-related compensation at a special meeting of Anchor stockholders. Anchor and Old National expect to complete the Merger on May 1, 2016.
  4. On April 29, 2016, ON Semiconductor Corporation (ON) announced that it has extended its previously announced tender offer to purchase all of the outstanding shares of common stock of Fairchild Semiconductor International (FCS) to May 12, 2016.
  5. On April 29, 2016, Alere (ALR) rejected Abbott Laboratories’s (ABT) attempt to end its $5.8 billion pending acquisition of the company.
  6. On April 29, 2016, the President and CEO of CommunityOne Bancorp (COB) said that the merger with Capital Bank (CBF) is expected to close in the second quarter of 2016.
  7. On May 1, 2016, Apollo Education Group (APOL) announced that it has received a revised offer from a consortium of investors including The Vistria Group, funds affiliated with Apollo Global Management and the Najafi Companies. Under the revised terms, which represent a best and final offer, the consortium has increased the price at which it would acquire the company to $10.00 per share in cash for both Class A and Class B shares.
  8. On May 1, 2016, Halliburton Company (HAL) and Baker Hughes Incorporated (BHI) announced that the companies have terminated the merger agreement they entered into in November 2014, effective April 30, 2016.

Closed Deals:

  1. The acquisition of Heartland Payment Systems (HPY) by Global Payments (GPN) on April 26, 2016. It took 133 days for this deal to be completed.
  2. The acquisition of The Fresh Market (TFM) by certain funds affiliated with Apollo Global Management (APO) on April 27, 2016. It took 44 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$19.3906/30/2016124.34%769.24%
ODP02/04/2015Staples, Inc. (SPLS)$9.48$5.8805/16/201661.25%1596.99%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$39.0012/31/201643.59%65.47%
APOL02/08/2016A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A)$10.00$7.8012/31/201628.21%42.37%
CI07/24/2015Anthem, Inc. (ANTM)$175.92$138.5412/31/201626.98%40.53%
HUM07/03/2015Aetna Inc. (AET)$219.43$177.0712/31/201623.92%35.93%
NKA06/14/2015Brookfield Infrastructure (N/A)$4.23$3.6912/31/201614.63%21.98%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$8.0512/31/201611.80%17.73%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$34.9512/31/201611.30%16.98%
HTCH11/02/2015TDK Corporation (N/A)$4.00$3.6506/30/20169.59%59.32%

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$19.398,823,25606/30/2016124.34%769.24%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$9.48$5.889,150,29305/16/201661.25%1596.99%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$39.007,857,73912/31/201643.59%65.47%
+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$10.00$7.801,553,82212/31/201628.21%42.37%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$175.92$138.54674,86912/31/201626.98%40.53%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$219.43$177.07605,92312/31/201623.92%35.93%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.6912,22512/31/201614.63%21.98%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$8.058,209,56012/31/201611.80%17.73%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$34.951,693,07812/31/201611.30%16.98%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.65313,01006/30/20169.59%59.32%
+BXLT01/11/2016Shire plc (SHPG)Cash Plus Stock$32 billion$45.78$41.957,898,66206/30/20169.12%56.42%
+KUTV04/05/2016Shanda Investment Holdings Limited (N/A)All CashN/A$1.08$0.99866,34312/31/20168.22%12.34%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$9.9827,339,70709/30/20167.21%17.44%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$41.19$38.523,771,71609/30/20166.94%16.77%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.05255,46406/30/20166.56%40.57%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$106.69946,09703/31/20175.91%6.48%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$80.62$76.2015,182,46212/31/20165.81%8.72%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.48105,55009/30/20165.65%13.65%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$46.41$44.071,111,94812/31/20165.32%7.99%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.32$11.716,24112/31/20165.17%7.77%
+LXK04/19/2016consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A)All Cash$3.6 billion$40.50$38.601,605,30612/31/20164.92%7.39%
+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$2.40637,23406/30/20164.58%28.35%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$33.392,264,39106/30/20164.52%27.98%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.17$13.56128,03608/15/20164.52%15.71%
+MTSN12/01/2015Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A)All Cash$300 million$3.80$3.6570,81606/30/20164.11%25.42%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.53$15.04314,82812/31/20163.26%4.89%
+SNDK10/21/2015Western Digital Corporation (WDC)Cash Plus Stock$19 billion$77.26$75.132,812,26606/30/20162.83%17.50%
+DWA04/28/2016NBCUniversal (N/A)All Cash$3.8 billion$41.00$39.929,587,53312/31/20162.71%4.06%
+PLCM04/15/2016Mitel Networks Corporation (MITL)Cash Plus Stock$1.96 billlion$12.26$11.951,033,53709/30/20162.63%6.35%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$16.87$16.458,975,59912/31/20162.56%3.84%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$32.69196,47306/30/20162.48%15.33%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$55.69880,37301/01/20172.35%3.52%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$18.58$18.1815612/31/20162.18%3.27%
+FCTY03/10/2016Midland Financial Co. (N/A)All CashN/A$11.22$10.994,64312/31/20162.09%3.14%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$10.99$10.77336,82606/30/20162.02%12.47%
+HFFC11/30/2015Great Western Bancorp. Inc. (GWB)All Stock$139.5 million$20.49$20.10159,78105/13/20161.93%64.05%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$24.5362,55406/30/20161.92%11.85%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$35.351,159,22009/30/20161.84%4.44%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$13.061508/15/20161.76%6.12%
+DATE12/07/2015FutureWorld Inc. (N/A)All CashN/A$7.56$7.45115,78104/30/20161.48%0.00%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$26.44254,72006/30/20161.36%8.42%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$37.0116,80306/30/20161.32%8.19%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$214.80$212.112,079,05406/30/20161.27%7.85%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.8421,95806/30/20161.16%7.15%
+CHEV11/24/2015MainSource Financial Group, Inc. (MSFG)All Stock$107.4 million$15.11$14.9515,64609/30/20161.08%2.61%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.67264,59003/31/20170.98%1.07%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$32.19258,93412/31/20160.96%1.45%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$10.66$10.564,013,03409/30/20160.92%2.22%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$18.54$18.3949,55606/30/20160.83%5.15%
+IHS03/21/2016Markit Ltd. (MRKT)All StockN/A$124.09$123.18183,54712/31/20160.74%1.11%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$19.70$19.563,30009/15/20160.72%1.94%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$22.30$22.161,038,80409/30/20160.65%1.56%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$22.99$22.85825,21906/30/20160.62%3.80%
+CBNJ01/05/2016OceanFirst Financial Corp. (OCFC)Cash Plus Stock$208.1 million$14.67$14.59166,78809/30/20160.54%1.30%
+ARG11/17/2015Air Liquide (N/A)All Cash$13.4 billion$143.00$142.441,121,30708/15/20160.39%1.37%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$70.20$69.94866,15906/30/20160.37%2.30%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.80925,61512/31/20160.33%0.50%
+CKP03/02/2016an affiliate of CCL Industries Inc. (N/A)All Cash$443 million$10.15$10.12456,73509/30/20160.30%0.72%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.681,076,34006/30/20160.26%1.62%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$65.861,180,44012/31/20160.21%0.32%
+POWR02/24/2016Southern Company (SO)All Cash$431 million$18.75$18.72262,85206/30/20160.16%0.99%
+ADT02/16/2016An Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management, LLC (N/A)All Cash$6.94 billion$42.00$41.984,103,93705/02/20160.05%0.00%
+NEWP02/23/2016MKS Instruments, Inc. (MKSI)All Cash$980 million$23.00$22.991,747,06006/30/20160.04%0.27%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$29.99566,77612/31/20160.03%0.05%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.2561,42206/28/20160.00%0.00%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$20.00775,43105/12/20160.00%0.00%
+VSCP03/25/2016BioTelemetry, Inc. (BEAT)All Cash$15.5 million$4.05$4.0546,00105/31/20160.00%0.00%
+SLI04/07/2016Handy & Harman Ltd. (HNH)All Cash$166.32 million$40.00$40.0011,53205/20/20160.00%0.00%
+AFOP04/07/2016Corning Inc. (GLW)All Cash$305 million$18.50$18.52266,75606/30/2016-0.11%-0.67%
+PULB12/03/2015First Busey Corporation (BUSE)All Stock$210.7 million$16.15$16.1730,52906/30/2016-0.14%-0.86%
+HTS04/11/2016Annaly Capital Management, Inc. (NLY)All Stock$1.5 billion$15.87$15.89816,30209/30/2016-0.15%-0.37%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$25.074,007,58712/15/2016-0.28%-0.45%
+CPGX03/17/2016TransCanada Corporation (TRP)All Cash$13 billion$25.50$25.625,390,91312/31/2016-0.47%-0.70%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$66.90$67.28957,02406/30/2016-0.57%-3.54%
+ABCW01/12/2016Old National Bancorp. (ONB)All Stock461 million$47.58$47.86246,55005/01/2016-0.59%216.06%
+RKUS04/04/2016Brocade Communications Systems, Inc. (BRCD)Cash Plus Stock$1.2 billion$13.66$13.741,253,31107/31/2016-0.60%-2.44%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.772,381,69906/30/2016-0.79%-4.90%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.331,072,25412/15/2016-1.10%-1.76%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$5.24$5.3033,56503/31/2016-1.18%13.49%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.47728,05909/30/2016-1.19%-2.88%
+HNSN04/20/2016Auris Surgical Robotics (N/A)All Cash$80 million$4.00$4.0582,17306/30/2016-1.23%-7.64%
+TXTR04/28/2016Oracle Corporation (ORCL)All Cash$663 million$26.00$26.391,121,45512/31/2016-1.48%-2.22%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$13.00$13.20116,25306/30/2016-1.52%-9.42%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$19.21$19.7113,52509/30/2016-2.54%-6.14%
+EXAM04/27/2016an affiliate of Leonard Green & Partners, L.P. (N/A)All Cash$2.2 billion$35.05$36.05972,95609/30/2016-2.77%-6.71%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$81.885,176,74906/30/2016-2.87%-17.76%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$15.35$15.885,23909/30/2016-3.35%-8.10%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$26.622,35409/30/2016-3.83%-9.26%
+VBIV10/26/2015SciVac Therapeutics Inc. (SVACF)All StockN/A$2.08$2.2117,33105/31/2016-5.84%-73.56%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.54$7.5727,43903/31/2015-40.09%36.77%

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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