Merger Arbitrage Mondays – June 27, 2016

  • June 26, 2016

Merger activity increased last week with three 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 201699
Total Number of Deals Not Completed in 20165
Total Number of Pending Deals
Cash Deals59
Stock Deals21
Stock & Cash Deals14
Special Conditions10
Total Number of Pending Deals104
Total Deal Size$923.19 billion

New Deals:

  1. The acquisition of American Science & Engineering (ASEI) by OSI Systems (OSIS) for $269 million or $37.00 per share in cash.
  2. The acquisition of Carolina Bank Holdings (CLBH) by First Bancorp (FBNC) for $97.3 million in a stock or cash deal. Under the terms of the agreement, Carolina Bank Holdings shareholders will receive either 1.002 shares of First Bancorp’s common stock or $20.00 in cash for each share of Carolina Bank Holdings common stock, subject to the total consideration being 75% stock / 25% cash. We have entered this deal as an all stock deal in our database.
  3. The acquisition of Skullcandy (SKUL) by Incipio for $177 million or $5.75 per share in cash.

Deal Updates:

  1. On June 21, 2016, Avenue Financial Holdings (AVNU) announced that its shareholders approved the proposed merger with Pinnacle Financial Partners (PNFP) at its special shareholders’ meeting. The deal is expected to close on or about July 1, 2016.
  2. On June 23, 2016, California Insurance Commissioner Dave Jones weighed in against health insurer Aetna (AET) proposed $34 billion acquisition of Humana (HUM), urging national antitrust regulators to block the deal.
  3. On June 24, 2016, Platinum Equity and Electro Rent Corporation (ELRC) announced that the purchase price for Platinum Equity’s previously announced acquisition of Electro Rent has increased by 18% to $15.50 per share in cash from $13.12 per share, now valuing the purchase price at approximately $382.2 million.
  4. On June 24, 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 July 7, 2016.
  5. On June 24, 2016, Energy Transfer Equity (ETE) announced that the Delaware Court of Chancery has issued an opinion finding that ETE is contractually entitled to terminate its merger agreement with The Williams Companies (WMB) in the event ETE’s counsel Latham & Watkins LLP is unable to deliver a required tax opinion prior to the June 28, 2016 outside date in the merger agreement.
  6. On June 24, 2016, Full Circle Capital Corporation (FULLannounced that it has entered into a merger agreement with Great Elm Capital, a company formed by Great Elm Capital Group. The combined company, to be named Great Elm Capital Corp., will apply for listing on NASDAQ under the symbol “GECC”. Full Circle stockholders are expected to own approximately 38% of the combined Great Elm Capital Corp., based on a pro-forma net asset value in excess of $190 million as of March 31, 2016.

Closed Deals:

  1. The acquisition of The Phoenix Companies (PNX) by Nassau Reinsurance Group Holdings on June 20, 2016. It took 265 days for this deal to be completed.
  2. The acquisition of Alexza Pharmaceuticals (ALXA) by Grupo Ferrer Internacional on June 21, 2016. It took 42 days for this for this deal to be completed.
  3. The acquisition of Cablevision Systems Corporation (CVC) by Altice on June 21, 2016. It took 278 days for this deal to be completed.
  4. The acquisition of China Ming Yang Wind Power Group Limited (MY) by a consortium of investors (the Buyer Consortium), including Mr. Chuanwei Zhang, the Chairman and Chief Executive Officer of the Company on June 22, 2016. It took 140 days for this deal to be completed.
  5. The acquisition of Northern Tier Energy (NTI) by Western Refining (WNR) on June 23, 2016. It took 185 days for this deal to be completed.
  6. The acquisition of Anacor Pharmaceuticals (ANAC) by Pfizer (PFE) on June 24, 2016. It took 39 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$21.3106/30/2016104.13%12669.09%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$41.6012/31/201634.62%67.56%
CI07/24/2015Anthem, Inc. (ANTM)$168.51$127.7112/31/201631.95%62.36%
HUM07/03/2015Aetna Inc. (AET)$223.54$182.9012/31/201622.22%43.37%
FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)$26.80$22.7106/30/201618.01%2191.18%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$7.7112/31/201616.73%32.66%
WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)$0.95$0.8303/31/201714.46%19.05%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$34.7912/31/201611.81%23.06%
DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)$6.70$6.0012/31/201611.67%22.77%
BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)$25.00$22.5006/30/201611.11%1351.85%

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$21.3120,533,69606/30/2016104.13%12669.09%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$41.601,035,86212/31/201634.62%67.56%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$168.51$127.713,101,87212/31/201631.95%62.36%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$223.54$182.90916,98512/31/201622.22%43.37%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$22.71204,55106/30/201618.01%2191.18%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.7117,349,32012/31/201616.73%32.66%
+WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)Special Conditions$18 million$0.95$0.8396,07203/31/201714.46%19.05%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$34.792,156,89012/31/201611.81%23.06%
+DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)All Cash$556 million$6.70$6.00528,34812/31/201611.67%22.77%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$22.50291,68106/30/201611.11%1351.85%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$71.802,832,58006/30/201610.77%1309.87%
+AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)All Cash$748.36 million$6.66$6.0221,96812/31/201610.63%20.75%
+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$9.11786,74508/31/20169.77%54.86%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.69100,48106/30/20168.40%1022.13%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.0030,34108/15/20168.33%62.07%
+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$37.401,102,85412/31/20168.29%16.18%
+KUTV04/05/2016Shanda Investment Holdings Limited (N/A)All CashN/A$1.08$0.99844,84112/31/20168.22%16.04%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$9.921,136,57809/30/20167.86%30.21%
+WR05/31/2016Great Plains Energy Incorporated (GXP)Special Conditions$12.2 billion$60.00$55.721,398,29403/31/20177.68%10.12%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.4474,44509/30/20167.38%28.34%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.27$13.56499,46508/15/20165.23%38.93%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$107.60887,76303/31/20175.02%6.61%
+PBCP06/02/2016Prudential Bancorp, Inc. (PBIP)Special Conditions$38.1 million$11.28$10.7512512/31/20164.93%9.62%
+TLN06/03/2016affiliates of Riverstone Holdings LLC (N/A)All Cash$5.2 billion$14.00$13.393,832,97012/31/20164.56%8.89%
+MHGC05/09/2016SBE (N/A)All Cash$794 million$2.25$2.162,520,23212/31/20164.17%8.13%
+HTS04/11/2016Annaly Capital Management, Inc. (NLY)All Stock$1.5 billion$16.58$15.982,541,89609/30/20163.76%14.45%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$79.76$76.885,295,97012/31/20163.75%7.32%
+QLIK06/02/2016Thoma Bravo, LLC (N/A)All Cash$3 billion$30.50$29.418,654,04509/30/20163.71%14.24%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$47.15$45.611,743,35512/31/20163.38%6.59%
+LNKD06/13/2016Microsoft Corporation (MSFT)All Cash$26.2 billion$196.00$190.115,708,84212/31/20163.10%6.05%
+FMD06/02/2016FP Resources USA Inc. (N/A)All Cash$65.5 million$5.05$4.9015,96109/30/20163.06%11.76%
+MESG05/23/2016Siris Capital Group, LLC (N/A)All Cash$643 million$25.00$24.42421,04709/30/20162.38%9.13%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$42.52$41.608,918,08609/30/20162.20%8.46%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.7026,08806/30/20162.19%266.42%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.27$14.95958,87412/31/20162.14%4.18%
+MRD05/16/2016Range Resources Corporation (RRC)All Stock$4.4 billion$16.25$15.923,037,77412/31/20162.04%3.98%
+AXLL06/10/2016Westlake Chemical Corporation (WLK)All Cash$3.8 billion$33.00$32.355,027,43112/31/20162.01%3.92%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$31.91387,27912/31/20161.85%3.61%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$56.00977,17501/01/20171.79%3.47%
+EVHC06/15/2016AmSurg Corp. (AMSG)All Stock$7.66 billion$26.44$25.992,928,62112/31/20161.72%3.35%
+FEIC05/27/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$4.2 billion$107.50$105.714,099,30101/31/20171.69%2.84%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$13.072,60908/15/20161.68%12.54%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$16.64$16.371,150,06012/31/20161.66%3.25%
+CERE06/17/2016Land O’Lakes (N/A)All Cash$17.2 million$0.40$0.394836,94709/30/20161.52%5.85%
+YCB05/03/2016WesBanco Inc. (WSBC)Cash Plus Stock$221 million$37.10$36.57386,83212/31/20161.45%2.84%
+REXI05/23/2016C-III Capital Partners (N/A)All Cash$270 million$9.78$9.64347,09311/15/20161.45%3.76%
+RDEN06/16/2016Revlon, Inc. (REV)All Cash$870 million$14.00$13.802,874,33112/31/20161.45%2.83%
+MKTO05/31/2016Vista Equity Partners (N/A)All Cash$1.79 billion$35.25$34.763,151,00809/30/20161.41%5.42%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$18.73$18.49752,14406/30/20161.29%156.89%
+CLBH06/22/2016First Bancorp (FBNC)All Stock$97.3 million$18.03$17.8251,95603/31/20171.16%1.52%
+SMT05/26/2016Foxconn Technology Group (N/A)All CashN/A$4.50$4.4530,01607/31/20161.12%12.06%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.65399,02603/31/20171.04%1.37%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.801,857,30007/07/20161.01%36.87%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$9.83$9.734,635,96609/30/20161.00%3.85%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$4.19131,04212/31/20160.95%1.86%
+SQI05/31/2016affiliates of Accel-KKR (N/A)All Cash$509 million$17.75$17.592,544,30209/30/20160.91%3.49%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$73.14$72.551,778,81806/30/20160.81%98.94%
+EXAM04/27/2016an affiliate of Leonard Green & Partners, L.P. (N/A)All Cash$2.2 billion$35.05$34.771,462,92409/30/20160.81%3.09%
+SAAS05/18/2016NICE Systems Ltd. (NICE)All Cash$940 million$14.00$13.892,346,27612/31/20160.79%1.55%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.555,192,91012/31/20160.76%1.47%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$35.741,619,03409/30/20160.73%2.80%
+DWA04/28/2016NBCUniversal (N/A)All Cash$3.8 billion$41.00$40.713,818,74312/31/20160.71%1.39%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$10.30$10.23903,70906/30/20160.66%80.61%
+NSPH05/16/2016Luminex Corporation (LMNX)All Cash$58 million$1.70$1.691,300,13006/30/20160.59%71.99%
+HNSN04/20/2016Auris Surgical Robotics (N/A)All Cash$80 million$4.00$3.9875,98306/30/20160.50%61.14%
+RRMS05/31/2016SemGroup Corporation (SEMG)All Stock$1.74 billion$25.45$25.36122,26409/30/20160.35%1.35%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.082,396,48312/15/20160.35%0.75%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.661,228,44306/30/20160.34%41.07%
+QLGC06/15/2016Cavium, Inc. (CAVM)Cash Plus Stock$1.36 billion$14.70$14.653,027,10509/30/20160.31%1.20%
+KKD05/09/2016JAB Beech Inc. (N/A)All Cash$1.35 billion$21.00$20.941,544,22009/30/20160.29%1.10%
+XNPT05/23/2016Arbor Pharmaceuticals, LLC (N/A)All Cash$467 million$7.03$7.01526,90909/30/20160.29%1.10%
+ELRC05/31/2016Platinum Equity (N/A)All Cash$382.2 million$15.50$15.46911,32009/30/20160.26%0.99%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$19.81$19.761,757,26309/30/20160.25%0.96%
+CPXX05/31/2016Jazz Pharmaceuticals Public Limited Company (JAZZ)All Cash$1.5 billion$30.25$30.194,127,80909/30/20160.20%0.76%
+UNTD05/04/2016B. Riley Financial, Inc. (RILY)All Cash$170 million$11.00$10.98475,97609/30/20160.18%0.70%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$65.901,069,04412/31/20160.15%0.30%
+DWRE06/01/2016salesforce.com, inc. (CRM)All Cash$2.8 billion$75.00$74.902,774,92807/31/20160.13%1.43%
+CPGX03/17/2016TransCanada Corporation (TRP)All Cash$13 billion$25.50$25.477,186,76212/31/20160.12%0.23%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.24806,65009/30/20160.05%0.21%
+PLCM04/15/2016Mitel Networks Corporation (MITL)Cash Plus Stock$1.96 billlion$11.60$11.601,571,26909/30/2016-0.04%-0.14%
+LDRH06/07/2016Zimmer Biomet Holdings, Inc. (ZBH)All Cash$1 billion$37.00$37.031,066,92609/30/2016-0.08%-0.31%
+SKUL06/24/2016Incipio LLC (N/A)All Cash$177 million$5.75$5.7612,348,63309/30/2016-0.17%-0.67%
+IHS03/21/2016Markit Ltd. (MRKT)All StockN/A$111.00$111.28548,07112/31/2016-0.25%-0.49%
+MGN05/24/2016Hecla Mining Co. (HL)All StockN/A$1.05$1.05103,46409/30/2016-0.30%-1.14%
+SSRG05/03/2016an affiliate of RoundTable Healthcare Partners (N/A)All Cash$140.3 million$13.10$13.14654,67509/30/2016-0.30%-1.17%
+FCTY03/10/2016Midland Financial Co. (N/A)All CashN/A$11.22$11.2611,16312/31/2016-0.36%-0.69%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.661,844,53506/30/2016-0.40%-48.39%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$25.121,163,89612/31/2016-0.48%-0.93%
+ACAS05/23/2016Ares Capital Corporation (ARCC)Cash Plus Stock$3.4 billion$15.74$15.833,144,30305/31/2017-0.55%-0.60%
+ASEI06/21/2016OSI Systems, Inc. (OSIS)All Cash$269 million$37.00$37.23262,51512/31/2016-0.62%-1.21%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$12.71$12.8144,44506/30/2016-0.77%-94.22%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$25.80N/A09/30/2016-0.78%-2.98%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$18.09$18.2527,76712/31/2016-0.87%-1.71%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.19$12.3019,67012/31/2016-0.92%-1.79%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$18.80$19.01813,39907/01/2016-1.10%-100.23%
+IMS05/03/2016Quintiles Transnational Holdings Inc. (Q)All Stock$9 billion$24.31$24.592,053,78212/31/2016-1.12%-2.18%
+LSBG05/05/2016Bar Harbor Bankshares (BHB)All Stock$143 million$17.94$18.15515,80603/31/2017-1.15%-1.51%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$34.15426,19906/30/2016-1.90%-231.58%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$30.951,046,76612/31/2016-3.07%-5.99%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$19.81$20.62140,25207/01/2016-3.92%-357.43%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$15.47$16.2426,02609/30/2016-4.72%-18.14%
+IOC05/20/2016Oil Search Limited (OSH.AX)All Stock$2.2 billion$38.46$41.61377,92609/30/2016-7.56%-29.05%
+AEGR06/15/2016QLT Inc. (QLTI)All Stock$267.27 million$1.38$1.542,694,55312/31/2016-10.09%-19.70%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$5.51$11.63286,73003/31/2015-52.61%42.30%

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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