Merger Arbitrage Mondays – May 23, 2016

  • May 22, 2016

Merger activity increased last week with five 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 201683
Total Number of Deals Not Completed in 20165
Total Number of Pending Deals
Cash Deals46
Stock Deals19
Stock & Cash Deals15
Special Conditions9
Total Number of Pending Deals89
Total Deal Size$843.71 billion

New Deals:

  1. The acquisition of Nanosphere (NSPH) by Luminex Corporation (LMNX) for $58 million or $1.35 per share in cash.
  2. The acquisition of Memorial Resource Development (MRD) by Range Resources Corporation (RRC) for $4.4 billion in an all stock deal. Under the terms of the agreement, MRD shareholders will receive 0.375 shares of Range common stock for each share of MRD common stock held.
  3. The acquisition of Anacor Pharmaceuticals (ANAC) by Pfizer (PFE) for $5.2 billion or $99.25 per share in cash.
  4. The acquisition of inContact (SAAS) by NICE Systems (NICE) for $940 million or $14.00 per share in cash.
  5. The acquisition of InterOil Corporation (IOC) by Oil Search Limited (OSH.AX) for $2.2 billion. Under the terms of the agreement, InterOil shareholders will receive 8.05 ordinary shares of Oil Search for each InterOil share (the Share Consideration); or InterOil shareholders may elect to receive a cash alternative, up to a total of US$770 million (subject to a pro rata scaleback) (the Cash Alternative); and All InterOil shareholders will also receive a CVR which will deliver an additional cash payment of approximately US$6.05 per share for each tcfe gross resource certification of the Elk-Antelope fields above 6.2 tcfe.

Deal Updates:

  1. On May 15, 2016, Energy Transfer Equity (ETE) said that a lawsuit filed by Williams Companies (WMB) to prevent ETE from terminating its once-coveted deal for Williams will lead to a delay in the buyout.
  2. On May 16, 2016, Pier Antonio Costamagna, a co-founder of Fuel Systems Solutions (FSYS) issued a statement outlining significant concerns with the proposed merger between FSS and Westport Innovations (WPRT) following disclosure of Westport’s reported financial results for the quarter ended March 31, 2016.
  3. On May 16, 2016, Williams Companies (WMB) has filed a suit against Energy Transfer Equity (ETE) to ensure that their merger remains on track. The company took the legal step when the latter expressed concerns over the merger citing that the deal had not secured the necessary legal opinion to make the transaction tax-free to shareholders.
  4. May 17, 2016: Based on information from the National Holdings Corporation (NHLD) second quarter earnings conference call, we are adjusting the closing date for the deal to August 15, 2016.
  5. On May 17, 2016, BBCN Bancorp (BBCN) and Wilshire Bancorp (WIBC) jointly announced the receipt of approvals from all regulatory agencies required for closing the merger of equals between BBCN and Wilshire.
  6. On May 20, 2016, Pinnacle Financial Partners (PNFP) announced that it has received approvals of its applications to merge with Avenue Financial Holdings (AVNU) from both the Tennessee Department of Financial Institutions and the Federal Deposit Insurance Corporation. The TDFI and FDIC have also approved the proposed merger of Pinnacle Bank and Avenue Bank. With receipt of these approvals, all regulatory approvals required for consummation of the proposed mergers have been received.

Closed Deals:

  1. The acquisition of HF Financial (HFFC) by Great Western Bancorp (GWB) on May 16, 2016. It took 168 days for this deal to be completed.
  2. The acquisition of Time Warner Cable (TWC) by Charter Communications (CHTR) on May 18, 2016. It took 358 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$22.1506/30/201696.39%925.83%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$40.6712/31/201637.69%61.97%
CI07/24/2015Anthem, Inc. (ANTM)$173.33$131.2812/31/201632.03%52.66%
HUM07/03/2015Aetna Inc. (AET)$217.66$169.6012/31/201628.34%46.59%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$7.6612/31/201617.49%28.76%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$33.7912/31/201615.12%24.86%
HTCH11/02/2015TDK Corporation (N/A)$4.00$3.5706/30/201612.04%115.69%
WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)$0.95$0.8503/31/201711.76%13.76%
KUTV04/05/2016Shanda Investment Holdings Limited (N/A)$1.08$0.9712/31/201611.34%18.64%
HOT11/16/2015Marriott International, Inc. (MAR)$79.53$72.6806/30/20169.42%90.53%

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$22.1512,608,43206/30/201696.39%925.83%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$40.67637,14012/31/201637.69%61.97%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$173.33$131.281,976,58312/31/201632.03%52.66%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$217.66$169.601,410,21612/31/201628.34%46.59%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.6636,918,99512/31/201617.49%28.76%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$33.792,176,60112/31/201615.12%24.86%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.5796,81506/30/201612.04%115.69%
+WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)Special Conditions$18 million$0.95$0.85268,16903/31/201711.76%13.76%
+KUTV04/05/2016Shanda Investment Holdings Limited (N/A)All CashN/A$1.08$0.9770012/31/201611.34%18.64%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$72.681,616,37006/30/20169.42%90.53%
+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$9.22748,91908/31/20168.46%30.88%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$23.0723,61206/30/20168.37%80.36%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$24.85114,99206/30/20167.85%75.37%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.72$11.8056212/31/20167.81%12.84%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$9.93981,37609/30/20167.75%21.77%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.4534,91409/30/20166.94%19.48%
+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$37.951,255,17612/31/20166.72%11.05%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.10$13.2379,06008/15/20166.59%28.64%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.0547908/15/20166.56%28.49%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$106.87868,06303/31/20175.74%6.71%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$18.67$17.7022412/31/20165.49%9.03%
+MHGC05/09/2016SBE (N/A)All Cash$794 million$2.25$2.16276,69012/31/20164.17%6.85%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$42.72$41.134,119,13809/30/20163.85%10.82%
+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$2.42985,55406/30/20163.72%35.72%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$32.30617,53206/30/20163.72%35.69%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$79.49$76.784,092,17512/31/20163.53%5.81%
+LSBG05/05/2016Bar Harbor Bankshares (BHB)All Stock$143 million$15.86$15.338,39603/31/20173.45%4.04%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$45.76$44.261,015,97412/31/20163.38%5.56%
+NSPH05/16/2016Luminex Corporation (LMNX)All Cash$58 million$1.35$1.314,707,26406/30/20163.05%29.33%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$4.11292,24112/31/20162.92%4.80%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$55.52352,69301/01/20172.67%4.36%
+BXLT01/11/2016Shire plc (SHPG)Cash Plus Stock$32 billion$45.52$44.4313,578,76306/30/20162.45%23.58%
+YCB05/03/2016WesBanco Inc. (WSBC)Cash Plus Stock$221 million$38.61$37.6952,02012/31/20162.43%4.00%
+DWA04/28/2016NBCUniversal (N/A)All Cash$3.8 billion$41.00$40.071,556,08412/31/20162.32%3.82%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.6962,43006/30/20162.26%21.75%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.68$15.39488,69412/31/20161.88%3.10%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$13.0715608/15/20161.68%7.31%
+HTS04/11/2016Annaly Capital Management, Inc. (NLY)All Stock$1.5 billion$16.63$16.381,891,14509/30/20161.51%4.23%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.50159,29303/31/20171.49%1.75%
+UNTD05/04/2016B. Riley Financial, Inc. (RILY)All Cash$170 million$11.00$10.85120,71309/30/20161.38%3.88%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$37.018,50106/30/20161.32%12.72%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$32.08151,07112/31/20161.31%2.15%
+IHS03/21/2016Markit Ltd. (MRKT)All StockN/A$121.92$120.56173,29912/31/20161.13%1.86%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$10.79$10.671,870,87009/30/20161.09%3.06%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$70.34$69.59999,60606/30/20161.08%10.35%
+SAAS05/18/2016NICE Systems Ltd. (NICE)All Cash$940 million$14.00$13.864,835,47312/31/20161.01%1.66%
+FCTY03/10/2016Midland Financial Co. (N/A)All CashN/A$11.22$11.113,36112/31/20160.99%1.63%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$21.94$21.74153,38706/30/20160.90%8.68%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$34.645,754,23706/30/20160.75%7.21%
+MRD05/16/2016Range Resources Corporation (RRC)All Stock$4.4 billion$15.14$15.033,492,94512/31/20160.75%1.23%
+EXAM04/27/2016an affiliate of Leonard Green & Partners, L.P. (N/A)All Cash$2.2 billion$35.05$34.792,539,78709/30/20160.75%2.10%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$17.16$17.04854,38912/31/20160.73%1.20%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$35.75542,53609/30/20160.70%1.96%
+CHEV11/24/2015MainSource Financial Group, Inc. (MSFG)All Stock$107.4 million$15.11$15.014,96209/30/20160.68%1.90%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$29.80224,91312/31/20160.67%1.10%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$19.61$19.497,02809/15/20160.64%2.03%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$22.60$22.461,486,27109/30/20160.60%1.70%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$65.63747,23112/31/20160.56%0.93%
+SSRG05/03/2016an affiliate of RoundTable Healthcare Partners (N/A)All Cash$140.3 million$13.10$13.03188,42909/30/20160.54%1.51%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.90565,15705/26/20160.50%61.14%
+RKUS04/04/2016Brocade Communications Systems, Inc. (BRCD)Cash Plus Stock$1.2 billion$12.43$12.372,509,39807/31/20160.46%2.46%
+PLCM04/15/2016Mitel Networks Corporation (MITL)Cash Plus Stock$1.96 billlion$11.11$11.07934,11109/30/20160.37%1.04%
+OPWR05/02/2016Oracle Corporation (ORCL)All Cash$532 million$10.30$10.27779,72912/31/20160.29%0.48%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.86295,47012/31/20160.23%0.38%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$18.70$18.6612,16906/30/20160.22%2.16%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.492,420,56306/30/20160.22%2.10%
+IMS05/03/2016Quintiles Transnational Holdings Inc. (Q)All Stock$9 billion$25.56$25.505,547,02712/31/20160.22%0.36%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.70636,92506/30/20160.19%1.80%
+SLI04/07/2016Handy & Harman Ltd. (HNH)All Cash$166.32 million$40.00$39.941,33505/20/20160.15%0.00%
+ARG11/17/2015Air Liquide (N/A)All Cash$13.4 billion$143.00$142.966,627,58308/15/20160.03%0.12%
+AFOP04/07/2016Corning Inc. (GLW)All Cash$305 million$18.50$18.50202,95006/30/20160.00%0.00%
+HNSN04/20/2016Auris Surgical Robotics (N/A)All Cash$80 million$4.00$4.0039,07306/30/20160.00%0.00%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$11.03$11.03349,07206/30/2016-0.01%-0.06%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.26222,73809/30/2016-0.05%-0.15%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$70.18$70.231,025,10806/30/2016-0.08%-0.73%
+CPGX03/17/2016TransCanada Corporation (TRP)All Cash$13 billion$25.50$25.525,275,23112/31/2016-0.08%-0.13%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.19478,50012/15/2016-0.29%-0.52%
+ANAC05/16/2016Pfizer Inc. (PFE)All Cash$5.2 billion$99.25$99.663,377,13509/30/2016-0.41%-1.16%
+TXTR04/28/2016Oracle Corporation (ORCL)All Cash$663 million$26.00$26.13193,64912/31/2016-0.50%-0.82%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$25.19893,98612/31/2016-0.75%-1.24%
+KKD05/09/2016JAB Beech Inc. (N/A)All Cash$1.35 billion$21.00$21.16568,60809/30/2016-0.76%-2.12%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$12.86$13.0213,85906/30/2016-1.22%-11.71%
+ALXA05/10/2016Grupo Ferrer Internacional, S.A. (N/A)Special ConditionsN/A$0.90$0.92310,85206/30/2016-2.17%-20.88%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$19.07$19.5823,25809/30/2016-2.59%-7.27%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$26.43N/A09/30/2016-3.14%-8.82%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$15.11$15.8157009/30/2016-4.44%-12.46%
+IOC05/20/2016Oil Search Limited (OSH.AX)All Stock$2.2 billion$39.85$43.575,938,93109/30/2016-8.54%-23.97%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$4.09$5.167,09006/30/2016-20.78%-199.61%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.55$8.7569,53903/31/2015-48.02%41.83%

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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