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Merger Arbitrage Mondays – May 9, 2016

  • May 8, 2016

Merger activity decreased last week with six new deals announced and six 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 201673
Total Number of Deals Not Completed in 20164
Total Number of Pending Deals
Cash Deals47
Stock Deals19
Stock & Cash Deals18
Special Conditions7
Total Number of Pending Deals91
Total Deal Size$835.05 billion

New Deals:

  1. The acquisition of OPOWER (OPWR) by Oracle Corporation (ORCL) for $532 million or $10.30 per share in cash.
  2. A merger of equals between IMS Health Holdings (IMS) and Quintiles Transnational Holdings (Q) for a combined value of $17.6 billion in an all stock deal. Under the terms of the agreement, IMS Health shareholders will receive a fixed exchange ratio of 0.384 shares of Quintiles common stock for each share of IMS Health common stock.
  3. The acquisition of Your Community Bankshares (YCB) by WesBanco (WSBC) for $221 million in a cash plus stock deal.
  4. The acquisition of Symmetry Surgical (SSRG) by an affiliate of RoundTable Healthcare Partners for $140.3 million or $13.10 per share in cash.
  5. The acquisition of United Online (UNTD) by B. Riley Financial (RILY) for $170 million or $11.00 per share in cash.
  6. The acquisition of Lake Sunapee Bank Group (LSBG) by Bar Harbor Bankshares (BHB) for $143 million in an all stock deal. Under the terms of the agreement, each outstanding share of Lake Sunapee common stock will be exchanged for 0.4970 shares of Bar Harbor common stock.

Deal Updates:

  1. On May 2, 2016, Apollo Education Group (APOL) announced that its shareholders have approved the merger agreement for the proposed acquisition by a consortium of investors, including The Vistria Group, funds affiliated with Apollo Global Management and the Najafi Companies.
  2. On May 3, 2016, The U.S. Federal Communications Commission said it had approved European telecoms group Altice NV’s acquisition of U.S. cable company Cablevision Systems Corp (CVC) in a $17.7 billion deal that includes assumption of debt.
  3. On May 5, 2016, Energy Transfer Equity (ETE) Chief Executive Kelcy Warren delivered the most public and concrete renunciation of his once-coveted deal for rival Williams (WMB). Warren said, “We can’t close this deal, Absent a substantial restructuring of this transaction, which Energy Transfer has been very willing and actually desiring to do, absent that, we don’t have a deal.”
  4. On May 6, 2016, The Federal Communications Commission voted to approve Charter Communications’ (CHTR) $79 billion acquisition of Time Warner Cable (TWC) and Bright House Networks.

Closed Deals:

  1. The acquisition of Newport (NEWP) by MKS Instruments (MKSI) on April 29, 2016. It took 66 days for this deal to be completed.
  2. The acquisition of Anchor BanCorp Wisconsin (ABCW) by Old National Bancorp (ONB) on May 2, 2016. It took 111 days for this deal to be completed.
  3. The acquisition of The ADT Corporation (ADT) by an Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management on May 2, 2016. It took 76 days for this deal to be completed.
  4. The acquisition of Cape Bancorp (CBNJ) by OceanFirst Financial Corp (OCFC) on May 2, 2016. It took 118 days for this deal to be completed.
  5. The acquisition of Pulaski Financial Corporation (PULB) by First Busey Corporation (BUSE) on May 2, 2016. It took 151 days for this deal to be completed.
  6. The acquisition of Crown Media Holdings (CRWN) by Hallmark Cards on May 2, 2016. It took 55 days for this deal to be completed. This deal was announced and closed in a short period of time because of the amount of stock already owned by Hallmark.

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$19.7006/30/2016120.81%848.01%
ODP02/04/2015Staples, Inc. (SPLS)$9.49$6.1405/16/201654.64%2849.08%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$39.4712/31/201641.88%64.77%
CI07/24/2015Anthem, Inc. (ANTM)$174.11$130.8512/31/201633.06%51.13%
HUM07/03/2015Aetna Inc. (AET)$219.49$170.6812/31/201628.60%44.23%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$34.3012/31/201613.41%20.74%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$7.9512/31/201613.21%20.43%
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$8.9512/31/201611.73%18.14%
HTCH11/02/2015TDK Corporation (N/A)$4.00$3.5906/30/201611.42%80.16%
TIVO04/29/2016Rovi Corporation (ROVI)$10.70$9.6409/30/201611.00%27.87%

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$19.709,335,79106/30/2016120.81%848.01%
+ODP02/04/2015Staples, Inc. (SPLS)Cash Plus Stock$6.3 billion$9.49$6.1410,165,83505/16/201654.64%2849.08%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$39.47874,47012/31/201641.88%64.77%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$174.11$130.852,575,34712/31/201633.06%51.13%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$219.49$170.681,275,20512/31/201628.60%44.23%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$34.301,140,56512/31/201613.41%20.74%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.9512,801,11612/31/201613.21%20.43%
+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$8.952,552,37212/31/201611.73%18.14%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.5979,54406/30/201611.42%80.16%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$9.641,702,67009/30/201611.00%27.87%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$3.8284,03912/31/201610.73%16.60%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$22.9637,42406/30/20168.89%62.37%
+KUTV04/05/2016Shanda Investment Holdings Limited (N/A)All CashN/A$1.08$1.00188,96012/31/20168.00%12.37%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$40.59$37.662,524,38909/30/20167.77%19.69%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.03131,71706/30/20167.23%50.72%
+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$38.061,722,68812/31/20166.41%9.92%
+BXLT01/11/2016Shire plc (SHPG)Cash Plus Stock$32 billion$43.76$41.179,814,25506/30/20166.28%44.11%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$79.81$75.103,589,84312/31/20166.28%9.71%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.47$11.7588,40912/31/20166.12%9.46%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$106.86497,93803/31/20175.75%6.43%
+MTSN12/01/2015Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A)All Cash$300 million$3.80$3.60220,17706/30/20165.56%39.00%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.49254,37109/30/20165.22%13.23%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$46.09$44.16807,01812/31/20164.36%6.74%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$18.33$17.645812/31/20163.93%6.08%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.17$13.64125,15908/15/20163.91%14.55%
+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$2.421,087,51606/30/20163.72%26.10%
+DATE12/07/2015FutureWorld Inc. (N/A)All CashN/A$7.56$7.29305,85504/30/20163.70%0.00%
+LSBG05/05/2016Bar Harbor Bankshares (BHB)All Stock$143 million$16.13$15.56158,86803/31/20173.68%4.12%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.51519,86806/30/20163.63%25.46%
+PLCM04/15/2016Mitel Networks Corporation (MITL)Cash Plus Stock$1.96 billlion$11.74$11.44740,78009/30/20162.62%6.64%
+DWA04/28/2016NBCUniversal (N/A)All Cash$3.8 billion$41.00$40.011,844,02512/31/20162.47%3.83%
+YCB05/03/2016WesBanco Inc. (WSBC)Cash Plus Stock$221 million$38.37$37.4529,62612/31/20162.47%3.82%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$26.19270,80606/30/20162.33%16.35%
+UNTD05/04/2016B. Riley Financial, Inc. (RILY)All Cash$170 million$11.00$10.75497,51609/30/20162.33%5.89%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$55.74785,33601/01/20172.26%3.48%
+IMS05/03/2016Quintiles Transnational Holdings Inc. (Q)All Stock$9 billion$25.33$24.772,749,80812/31/20162.26%3.49%
+FCTY03/10/2016Midland Financial Co. (N/A)All CashN/A$11.22$10.9818,63712/31/20162.19%3.38%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$10.63$10.42249,47206/30/20162.00%14.04%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$32.91401,48006/30/20161.79%12.58%
+SSRG05/03/2016an affiliate of RoundTable Healthcare Partners (N/A)All Cash$140.3 million$13.10$12.87265,32509/30/20161.79%4.53%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.08$14.82489,65212/31/20161.75%2.71%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$31.95105,96812/31/20161.72%2.66%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$10.38$10.214,841,64409/30/20161.65%4.18%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$21.55$21.201,084,93406/30/20161.64%11.53%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$17.49$17.251,770,64212/31/20161.39%2.15%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$13.115,20308/15/20161.37%5.11%
+SNDK10/21/2015Western Digital Corporation (WDC)Cash Plus Stock$19 billion$76.40$75.424,451,55806/30/20161.29%9.09%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.58200,74603/31/20171.25%1.40%
+HTS04/11/2016Annaly Capital Management, Inc. (NLY)All Stock$1.5 billion$16.52$16.33744,21209/30/20161.16%2.95%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$34.504,851,66206/30/20161.16%8.14%
+HFFC11/30/2015Great Western Bancorp. Inc. (GWB)All Stock$139.5 million$20.01$19.7924,62705/13/20161.10%100.06%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$35.65512,88109/30/20160.98%2.49%
+TWC05/26/2015Charter Communications, Inc. (CHTR)Cash Plus Stock$78.7 billion$215.17$213.172,781,34406/30/20160.94%6.58%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$21.99$21.80658,79709/30/20160.89%2.25%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$18.20$18.0529,87506/30/20160.82%5.78%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$37.2129,22806/30/20160.78%5.47%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$19.02$18.886,25909/15/20160.73%2.06%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.88439,77105/12/20160.60%73.44%
+CPGX03/17/2016TransCanada Corporation (TRP)All Cash$13 billion$25.50$25.376,991,44812/31/20160.51%0.79%
+IHS03/21/2016Markit Ltd. (MRKT)All StockN/A$122.70$122.20297,14812/31/20160.41%0.64%
+ARG11/17/2015Air Liquide (N/A)All Cash$13.4 billion$143.00$142.60344,64908/15/20160.28%1.04%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$29.9279,32112/31/20160.27%0.41%
+VSCP03/25/2016BioTelemetry, Inc. (BEAT)All Cash$15.5 million$4.05$4.0442,70005/31/20160.25%4.11%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$69.47$69.36777,23706/30/20160.16%1.11%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.91519,26712/31/20160.15%0.23%
+TXTR04/28/2016Oracle Corporation (ORCL)All Cash$663 million$26.00$25.971,662,86812/31/20160.12%0.18%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.721,094,70906/30/20160.11%0.79%
+RKUS04/04/2016Brocade Communications Systems, Inc. (BRCD)Cash Plus Stock$1.2 billion$12.51$12.502,298,58507/31/20160.08%0.35%
+POWR02/24/2016Southern Company (SO)All Cash$431 million$18.75$18.76352,89606/30/2016-0.05%-0.37%
+CKP03/02/2016an affiliate of CCL Industries Inc. (N/A)All Cash$443 million$10.15$10.16435,04809/30/2016-0.10%-0.25%
+NTLS08/10/2015Shenandoah Telecommunications Co. (SHEN)All Cash$640 million$9.25$9.26349,11706/28/2016-0.11%-0.79%
+AFOP04/07/2016Corning Inc. (GLW)All Cash$305 million$18.50$18.52359,95106/30/2016-0.11%-0.76%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$25.031,581,42412/15/2016-0.12%-0.20%
+SLI04/07/2016Handy & Harman Ltd. (HNH)All Cash$166.32 million$40.00$40.0517,77105/20/2016-0.12%-4.14%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$66.14643,83012/31/2016-0.21%-0.33%
+HNSN04/20/2016Auris Surgical Robotics (N/A)All Cash$80 million$4.00$4.0158,42806/30/2016-0.25%-1.75%
+OPWR05/02/2016Oracle Corporation (ORCL)All Cash$532 million$10.30$10.331,164,29912/31/2016-0.29%-0.45%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.3191,79609/30/2016-0.33%-0.83%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$68.27$68.59585,88306/30/2016-0.47%-3.32%
+FSYS09/01/2015Westport Innovations Inc. (WPRT)All Stock$126.36 million$5.07$5.1028,05606/30/2016-0.65%-4.54%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.742,005,34306/30/2016-0.68%-4.81%
+VBIV10/26/2015SciVac Therapeutics Inc. (SVACF)All StockN/A$2.08$2.1090,52805/31/2016-0.91%-15.14%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$12.74$12.8711,29906/30/2016-1.04%-7.28%
+EXAM04/27/2016an affiliate of Leonard Green & Partners, L.P. (N/A)All Cash$2.2 billion$35.05$35.42890,69109/30/2016-1.04%-2.65%
+CHEV11/24/2015MainSource Financial Group, Inc. (MSFG)All Stock$107.4 million$14.58$14.775,92909/30/2016-1.29%-3.28%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$81.342,035,01306/30/2016-2.23%-15.62%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.621,286,58612/15/2016-2.72%-4.52%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$18.94$19.566,46209/30/2016-3.19%-8.08%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$15.29$15.8280009/30/2016-3.34%-8.48%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$26.735,69709/30/2016-4.23%-10.72%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.50$8.4046,71703/31/2015-46.48%41.89%

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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