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Merger Arbitrage Mondays – May 30, 2016

  • May 30, 2016

Merger activity increased last week with eight new deals announced and three 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 201686
Total Number of Deals Not Completed in 20165
Total Number of Pending Deals
Cash Deals51
Stock Deals19
Stock & Cash Deals15
Special Conditions9
Total Number of Pending Deals94
Total Deal Size$853.44 billion

New Deals:

  1. The acquisition of Resource America (REXI) by C-III Capital Partners for $270 million or $9.78 per share in cash.
  2. The acquisition of American Capital (ACAS) by Ares Capital Corporation (ARCC) for $3.4 billion in a cash plus stock deal. Under the term of the agreement, American Capital shareholders will receive $1.470 billion in cash from Ares Capital, or $6.41 per share, plus 0.483 Ares Capital shares for each American Capital share. In a separate transaction, American Capital also announced today that it is selling   American Capital Mortgage Management to American Capital Agency (AGNC) for $562 million or $2.45 per fully diluted share.
  3. The acquisition of Xenoport (XNPT) by Arbor Pharmaceuticals for $467 million or $7.03 per share in cash.
  4. The acquisition of Mines Management (MGN) by Hecla Mining (HL) in an all stock deal. Under the terms of the agreement, each outstanding common share of Mines Management will be exchanged for 0.2218 of a common share of Hecla.
  5. The acquisition of Aixtron (AIXG) by Fujian Grand Chip Investment Fund for 670 million Euros or 6 Euros per share in cash. Note: We have used a conversion rate of 1.11 US Dollars per Euro.
  6. The acquisition of Xura (MESG) by Siris Capital Group for $643 million or $25.00 per share in cash.
  7. The acquisition of FEI Company (FEIC) by Thermo Fisher Scientific (TMO) for $4.2 billion or $107.50 per share in cash.
  8. The acquisition of Smart Technologies (SMT) by Foxconn Technology Group for $4.50 per share in cash.

Deal Updates:

  1. On May 23, 2016, Luminex Corporation (LMNX) and Nanosphere (NSPH) announced that they have entered into an amendment to the definitive agreement under which Luminex will acquire Nanosphere.  The purchase price has been increased to $1.70 per share from $1.35 per share in an all cash transaction valued at approximately $77 million. This increase was in response to an unsolicited third party offer for Nanosphere at $1.50 per share.
  2. On May 23, 2016, Polycom (PLCM), announced that it had received a revised, non-binding proposal from a private equity sponsor that was previously described as “Sponsor 1” in the Registration Statement on Form S-4 filed by Mitel Networks Corporation (MITL). Under the terms of Sponsor 1’s revised proposal, existing Polycom stockholders would receive a cash dividend of $11.00 per share and Sponsor 1 would purchase from Polycom $650 million in shares of a new convertible preferred stock of Polycom. The Polycom Board, in consultation with its legal and financial advisors, will consider the outcome of its discussions or negotiations with Sponsor 1 to determine the course of action that is in the best interest of Polycom and its stockholders.
  3. On May 25, 2016, Fuel Systems Solutions (FSYS) announced that the final exchange ratio has been determined for its proposed business combination with Westport Innovations (WPRT). Fuel Systems stockholders will receive 2.4755 Westport common shares for each share of Fuel Systems common stock owned upon completion of the Merger, assuming the Merger closes as anticipated on June 1, 2016.
  4. On May 26, 2015, Handy & Harman (HNH) announced that it has extended its tender offer to purchase all of the outstanding shares of SL Industries (SLI). Unless extended further, the tender offer will now expire on May 31, 2016.
  5. On May 26, 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 June 9, 2016.

Closed Deals:

  1. The acquisition of Airgas (ARG) by Air Liquide on May 23, 2016. It took 188 days for this deal to be completed.
  2. The acquisition of Cheviot Financial (CHEV) by MainSource Financial Group (MSFG) on May 25, 2016. It took 183 days for this deal to be completed.
  3. The acquisition of Ruckus Wireless (RKUS) by Brocade Communications Systems (BRCD) on May 27, 2016. It took 53 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$21.4806/30/2016102.51%1207.02%
CI07/24/2015Anthem, Inc. (ANTM)$170.74$128.8212/31/201632.54%55.24%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$42.5712/31/201631.55%53.56%
HUM07/03/2015Aetna Inc. (AET)$219.85$173.7412/31/201626.54%45.05%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$7.7512/31/201616.13%27.38%
HTCH11/02/2015TDK Corporation (N/A)$4.00$3.5306/30/201613.31%156.77%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$34.7712/31/201611.88%20.17%
KUTV04/05/2016Shanda Investment Holdings Limited (N/A)$1.08$0.98012/31/201610.20%17.32%
FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)$26.80$24.5706/30/20169.08%106.86%
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$9.2108/31/20168.58%33.66%

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$21.487,893,85206/30/2016102.51%1207.02%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$170.74$128.82980,75412/31/201632.54%55.24%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$42.572,927,51712/31/201631.55%53.56%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$219.85$173.74585,36912/31/201626.54%45.05%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.7514,025,62112/31/201616.13%27.38%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.5329,51606/30/201613.31%156.77%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$34.772,159,67912/31/201611.88%20.17%
+KUTV04/05/2016Shanda Investment Holdings Limited (N/A)All CashN/A$1.08$0.98060412/31/201610.20%17.32%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$24.57206,53806/30/20169.08%106.86%
+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$9.21289,22008/31/20168.58%33.66%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$73.71629,83006/30/20167.90%92.97%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.4493,01809/30/20167.38%21.89%
+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$37.891,658,99712/31/20166.89%11.69%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$10.021,194,96809/30/20166.79%20.14%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.76$11.972,13512/31/20166.61%11.22%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.22$13.43121,75508/15/20165.87%27.84%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.08284,31708/15/20165.52%26.16%
+AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)All Cash$748.36 million$6.66$6.31549,93712/31/20165.46%9.27%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$107.55503,25103/31/20175.07%6.06%
+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$2.40513,94506/30/20164.58%53.97%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$24.018,65306/30/20164.12%48.55%
+LSBG05/05/2016Bar Harbor Bankshares (BHB)All Stock$143 million$16.77$16.198,46903/31/20173.61%4.31%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$80.97$78.182,570,50012/31/20163.57%6.06%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$46.15$44.561,025,22112/31/20163.57%6.05%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$18.87$18.29N/A12/31/20163.15%5.35%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$43.88$42.682,045,36309/30/20162.81%8.34%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$32.59634,24106/30/20162.79%32.88%
+MHGC05/09/2016SBE (N/A)All Cash$794 million$2.25$2.19372,68612/31/20162.74%4.65%
+YCB05/03/2016WesBanco Inc. (WSBC)Cash Plus Stock$221 million$39.25$38.2210,92512/31/20162.70%4.58%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$4.13116,39012/31/20162.42%4.11%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$12.9837,82008/15/20162.39%11.32%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.6936,75506/30/20162.26%26.66%
+DWA04/28/2016NBCUniversal (N/A)All Cash$3.8 billion$41.00$40.181,379,91012/31/20162.04%3.46%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$55.98339,81501/01/20171.82%3.08%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$36.8513,84106/30/20161.76%20.77%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$31.95115,90012/31/20161.72%2.92%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$16.14$15.88274,99112/31/20161.64%2.78%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$23.20$22.861,057,42709/30/20161.48%4.38%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$11.06$10.908,185,95609/30/20161.45%4.31%
+REXI05/23/2016C-III Capital Partners (N/A)All Cash$270 million$9.78$9.64167,49211/15/20161.45%3.14%
+MRD05/16/2016Range Resources Corporation (RRC)All Stock$4.4 billion$15.51$15.303,302,17112/31/20161.37%2.33%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.63234,99103/31/20171.10%1.32%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$19.55$19.3413,04906/30/20161.08%12.76%
+IMS05/03/2016Quintiles Transnational Holdings Inc. (Q)All Stock$9 billion$25.61$25.35645,06112/31/20161.04%1.76%
+SMT05/26/2016Foxconn Technology Group (N/A)All CashN/A$4.50$4.4673,75407/31/20160.90%5.28%
+FCTY03/10/2016Midland Financial Co. (N/A)All CashN/A$11.22$11.135,82012/31/20160.81%1.37%
+SAAS05/18/2016NICE Systems Ltd. (NICE)All Cash$940 million$14.00$13.892,121,63912/31/20160.79%1.34%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$21.48$21.32300,55406/30/20160.76%8.98%
+MESG05/23/2016Siris Capital Group, LLC (N/A)All Cash$643 million$25.00$24.82994,79609/30/20160.73%2.15%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$73.49$72.99597,30706/30/20160.68%7.98%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$34.671,502,15706/30/20160.66%7.81%
+NSPH05/16/2016Luminex Corporation (LMNX)All Cash$58 million$1.70$1.693,573,52906/30/20160.59%6.97%
+EXAM04/27/2016an affiliate of Leonard Green & Partners, L.P. (N/A)All Cash$2.2 billion$35.05$34.85429,09609/30/20160.57%1.70%
+UNTD05/04/2016B. Riley Financial, Inc. (RILY)All Cash$170 million$11.00$10.9447,44009/30/20160.55%1.63%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$65.64746,27412/31/20160.55%0.93%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$17.67$17.58230,56312/31/20160.51%0.86%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.90281,73506/09/20160.50%18.34%
+HNSN04/20/2016Auris Surgical Robotics (N/A)All Cash$80 million$4.00$3.9814,56406/30/20160.50%5.92%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$35.82569,18609/30/20160.50%1.49%
+BXLT01/11/2016Shire plc (SHPG)Cash Plus Stock$32 billion$45.71$45.5343,068,25506/30/20160.39%4.59%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$29.9092,62712/31/20160.33%0.57%
+HTS04/11/2016Annaly Capital Management, Inc. (NLY)All Stock$1.5 billion$16.15$16.112,162,48609/30/20160.28%0.82%
+OPWR05/02/2016Oracle Corporation (ORCL)All Cash$532 million$10.30$10.28331,96812/31/20160.19%0.33%
+SSRG05/03/2016an affiliate of RoundTable Healthcare Partners (N/A)All Cash$140.3 million$13.10$13.0826,59009/30/20160.15%0.45%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.531,072,60806/30/20160.07%0.86%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.96306,56912/31/20160.07%0.11%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$11.44$11.43276,45406/30/20160.06%0.75%
+SLI04/07/2016Handy & Harman Ltd. (HNH)All Cash$166.32 million$40.00$40.001,70905/31/20160.00%0.00%
+WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)Special Conditions$18 million$0.95$0.95198,48903/31/20170.00%0.00%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$19.88$19.885,89709/15/2016-0.01%-0.04%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.26231,63409/30/2016-0.05%-0.16%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.77205,77206/30/2016-0.07%-0.88%
+TXTR04/28/2016Oracle Corporation (ORCL)All Cash$663 million$26.00$26.02545,88012/31/2016-0.08%-0.13%
+CPGX03/17/2016TransCanada Corporation (TRP)All Cash$13 billion$25.50$25.532,147,59012/31/2016-0.12%-0.20%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$68.06$68.151,373,50506/30/2016-0.13%-1.59%
+XNPT05/23/2016Arbor Pharmaceuticals, LLC (N/A)All Cash$467 million$7.03$7.041,866,33109/30/2016-0.14%-0.42%
+AFOP04/07/2016Corning Inc. (GLW)All Cash$305 million$18.50$18.5360,35006/30/2016-0.16%-1.91%
+ACAS05/23/2016Ares Capital Corporation (ARCC)Cash Plus Stock$3.4 billion$16.05$16.084,077,74605/31/2017-0.17%-0.17%
+ANAC05/16/2016Pfizer Inc. (PFE)All Cash$5.2 billion$99.25$99.432,188,84009/30/2016-0.18%-0.54%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$25.674,62509/30/2016-0.27%-0.81%
+MGN05/24/2016Hecla Mining Co. (HL)All StockN/A$0.87$0.87276,89309/30/2016-0.32%-0.94%
+FEIC05/27/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$4.2 billion$107.50$108.135,535,10301/31/2017-0.58%-0.86%
+IHS03/21/2016Markit Ltd. (MRKT)All StockN/A$121.78$122.66465,67212/31/2016-0.72%-1.22%
+PLCM04/15/2016Mitel Networks Corporation (MITL)Cash Plus Stock$1.96 billlion$11.88$11.971,002,74609/30/2016-0.72%-2.13%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$13.29$13.416,61906/30/2016-0.92%-10.80%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$25.28671,17912/31/2016-1.11%-1.88%
+KKD05/09/2016JAB Beech Inc. (N/A)All Cash$1.35 billion$21.00$21.39752,27409/30/2016-1.82%-5.41%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$15.67$16.0824,76509/30/2016-2.56%-7.60%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$19.64$20.2333,15209/30/2016-2.93%-8.70%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$5.10$5.276,30906/01/2016-3.23%-590.34%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.80858,86912/15/2016-3.71%-6.80%
+ALXA05/10/2016Grupo Ferrer Internacional, S.A. (N/A)Special ConditionsN/A$0.90$0.95332,30806/30/2016-5.56%-65.48%
+IOC05/20/2016Oil Search Limited (OSH.AX)All Stock$2.2 billion$39.49$42.41528,18909/30/2016-6.89%-20.45%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.90$9.8467,18103/31/2015-50.20%43.01%

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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