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Merger Arbitrage Mondays – June 6, 2016

  • June 5, 2016

Merger activity increased significantly last week with twelve new deals announced and three deals closing. Out of the twelve new deals announced, seven of them were worth over $1 billion and all of the deals together were worth nearly $30 billion.

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 201689
Total Number of Deals Not Completed in 20165
Total Number of Pending Deals
Cash Deals59
Stock Deals19
Stock & Cash Deals14
Special Conditions11
Total Number of Pending Deals103
Total Deal Size$881.42 billion

New Deals:

  1. The acquisition of Westar Energy (WR) by Great Plains Energy Incorporated (GXP) for $12.2 billion in a cash plus stock deal. Under the terms of the agreement, Westar shareholders will receive $60.00 per share of total consideration for each share of Westar common stock, consisting of $51.00 in cash and $9.00 in Great Plains Energy common stock, subject to a 7.5 percent collar based upon the Great Plains Energy common stock price at the time of the closing of the transaction, with the exchange ratio for the stock consideration ranging between 0.2709 to 0.3148 shares of Great Plains Energy common stock for each Westar share of common stock, representing a consideration mix of 85 percent cash and 15 percent stock.
  2. The acquisition of SciQuest (SQI) by affiliates of Accel-KKR for $509 million or $17.75 per share in cash.
  3. The acquisition of Celator Pharmaceuticals (CPXX) by Jazz Pharmaceuticals Public Limited Company (JAZZ) for approximately $1.5 billion or $30.25 per share in cash.
  4. The acquisition of Marketo (MKTO) by Vista Equity Partners for $1.79 billion or $35.25 per share in cash.
  5. The acquisition of Electro Rent Corporation (ELRC) by Platinum Equity for $323.4 million or $13.12 per share in cash.
  6. The acquisition of Rose Rock Midstream (RRMS) by SemGroup Corporation (SEMG) in an all stock deal for $1.74 billion. Under the terms of the agreement, shareholders of Rose Rock Midstream will receive 0.8136 SemGroup common shares per Rose Rock common unit.
  7. The acquisition of E-Commerce China Dangdang (DANG) by Dangdang Holding Company Limited and Dangdang Merger Company Limited in a going private transaction for $556 million. Under the terms of the agreement, shareholders of E-Commerce China Dangdang will receive $6.70 per American depositary share of the Company, each ADS representing five Class A Shares of the Company.
  8. The acquisition of Demandware (DWRE) by salesforce.com (CRM) for $2.8 billion or $75.00 per share in cash.
  9. The acquisition of Qlik Technologies (QLIK) by Thoma Bravo for $3 billion or $30.50 per share in cash.
  10. The acquisition of The First Marblehead Corporation (FMD) by FP Resources USA for $65.5 million or $5.05 per share in cash.
  11. The acquisition of Polonia Bancorp (PBCP) by Prudential Bancorp (PBIP) for $38.1 million. Under the terms of the agreement, shareholders of Polonia Bancorp will be entitled to elect to receive either 0.7591 shares of Prudential common stock or $11.28 in cash for each common share of Polonia, subject to proration and allocation to ensure that 50% of outstanding Polonia shares are exchanged for shares of Prudential common stock and 50% are exchanged for cash.
  12. The acquisition of Talen Energy Corporation (TLN) by affiliates of Riverstone Holdings for $5.2 billion or $14.00 per share in cash.

Closed Deals:

  1. The acquisition of Fuel Systems Solutions (FSYS) by Westport Innovations (WPRT) on June 1, 2016. It took 274 days for this deal to be completed.
  2. The acquisition of SL Industries (SLI) by Handy & Harman (HNH) on June 1, 2016. It took 55 days for this deal to be completed.
  3. The acquisition of Baxalta Incorporated (BXLT) by Shire (SHPG) on June 3, 2016. It took 144 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$22.8306/30/201690.54%1376.94%
CI07/24/2015Anthem, Inc. (ANTM)$171.32$129.7012/31/201632.09%56.32%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$42.8312/31/201630.75%53.96%
HUM07/03/2015Aetna Inc. (AET)$225.53$186.2012/31/201621.12%37.07%
FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)$26.80$22.9506/30/201616.78%255.13%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$7.7212/31/201616.58%29.10%
HTCH11/02/2015TDK Corporation (N/A)$4.00$3.5406/30/201612.99%197.62%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$34.7612/31/201611.91%20.90%
KUTV04/05/2016Shanda Investment Holdings Limited (N/A)$1.08$0.98512/31/20169.64%16.92%
LXK04/19/2016consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A)$40.50$37.2212/31/20168.81%15.46%

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$22.834,752,65206/30/201690.54%1376.94%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$171.32$129.701,236,87212/31/201632.09%56.32%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$42.83204,03012/31/201630.75%53.96%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$225.53$186.201,094,10312/31/201621.12%37.07%
+FGL11/09/2015Anbang Insurance Group Co., Ltd. (N/A)All CashN/A$26.80$22.95289,45506/30/201616.78%255.13%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.725,438,03812/31/201616.58%29.10%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.54126,85206/30/201612.99%197.62%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$34.761,025,82312/31/201611.91%20.90%
+KUTV04/05/2016Shanda Investment Holdings Limited (N/A)All CashN/A$1.08$0.98530,85012/31/20169.64%16.92%
+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$37.22700,25712/31/20168.81%15.46%
+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$9.21456,49108/31/20168.58%36.41%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$9.88886,04709/30/20168.30%26.12%
+WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)Special Conditions$18 million$0.95$0.88203,43303/31/20177.95%9.74%
+FMD06/02/2016FP Resources USA Inc. (N/A)All Cash$65.5 million$5.05$4.71880,39509/30/20167.22%22.71%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.4518,04509/30/20166.94%21.83%
+DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)All Cash$556 million$6.70$6.291,362,44812/31/20166.52%11.44%
+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$2.361,721,55306/30/20166.36%96.66%
+WR05/31/2016Great Plains Energy Incorporated (GXP)Special Conditions$12.2 billion$60.00$56.474,480,83903/31/20176.25%7.66%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$75.00948,57706/30/20166.04%91.86%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.39$13.60133,73908/15/20165.84%30.44%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.68$12.0111,57812/31/20165.59%9.82%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$23.7624,12006/30/20165.22%79.37%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.09131,46708/15/20165.18%27.00%
+MGN05/24/2016Hecla Mining Co. (HL)All StockN/A$0.98$0.94680,18709/30/20164.77%14.99%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$108.20401,78903/31/20174.44%5.43%
+PBCP06/02/2016Prudential Bancorp, Inc. (PBIP)Special Conditions$38.1 million$11.28$10.8553,56912/31/20163.96%6.95%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$46.40$44.781,456,76612/31/20163.63%6.37%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$80.87$78.272,549,14012/31/20163.32%5.82%
+MHGC05/09/2016SBE (N/A)All Cash$794 million$2.25$2.1863,36412/31/20163.21%5.63%
+AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)All Cash$748.36 million$6.66$6.460112,79412/31/20163.09%5.43%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$44.49$43.262,220,58309/30/20162.84%8.92%
+LSBG05/05/2016Bar Harbor Bankshares (BHB)All Stock$143 million$16.97$16.5429,61403/31/20172.62%3.20%
+YCB05/03/2016WesBanco Inc. (WSBC)Cash Plus Stock$221 million$38.61$37.6832,11812/31/20162.46%4.31%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$4.14120,98212/31/20162.17%3.81%
+RRM02/26/2016SES (N/A)All Cash$242 million$13.29$13.021,89908/15/20162.07%10.81%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$18.65$18.292,78612/31/20161.96%3.44%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$31.88214,18112/31/20161.94%3.41%
+PNX09/29/2015Nassau Reinsurance Group Holdings L.P. (N/A)All Cash$217.2 million$37.50$36.7918,35206/30/20161.93%29.35%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$55.98292,69601/01/20171.82%3.18%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$16.06$15.80431,90612/31/20161.65%2.89%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.7826,34806/30/20161.60%24.28%
+DWA04/28/2016NBCUniversal (N/A)All Cash$3.8 billion$41.00$40.38910,21212/31/20161.54%2.69%
+MRD05/16/2016Range Resources Corporation (RRC)All Stock$4.4 billion$16.22$15.971,847,52612/31/20161.53%2.69%
+QLIK06/02/2016Thoma Bravo, LLC (N/A)All Cash$3 billion$30.50$30.104,230,17609/30/20161.33%4.18%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$22.82$22.551,572,49309/30/20161.19%3.76%
+NSPH05/16/2016Luminex Corporation (LMNX)All Cash$58 million$1.70$1.68943,29106/30/20161.19%18.11%
+SMT05/26/2016Foxconn Technology Group (N/A)All CashN/A$4.50$4.45520,48107/31/20161.01%6.70%
+MNRK12/17/2015Towne Bank (TOWN)All Stock$221 million$19.38$19.2023,35506/30/20160.95%14.40%
+HTS04/11/2016Annaly Capital Management, Inc. (NLY)All Stock$1.5 billion$16.46$16.312,596,34509/30/20160.92%2.88%
+SAAS05/18/2016NICE Systems Ltd. (NICE)All Cash$940 million$14.00$13.881,552,86112/31/20160.86%1.52%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$10.94$10.861,807,80009/30/20160.76%2.40%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$35.74327,33209/30/20160.73%2.29%
+CVC09/17/2015Altice (N/A)All Cash$17.7 billion$34.90$34.651,994,36406/30/20160.72%10.97%
+REXI05/23/2016C-III Capital Partners (N/A)All Cash$270 million$9.78$9.71161,79311/15/20160.72%1.62%
+EXAM04/27/2016an affiliate of Leonard Green & Partners, L.P. (N/A)All Cash$2.2 billion$35.05$34.81998,67709/30/20160.69%2.17%
+FCTY03/10/2016Midland Financial Co. (N/A)All CashN/A$11.22$11.1533,12712/31/20160.63%1.10%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$73.55$73.10593,58006/30/20160.62%9.36%
+MESG05/23/2016Siris Capital Group, LLC (N/A)All Cash$643 million$25.00$24.85397,56209/30/20160.60%1.90%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$33.31282,25106/30/20160.57%8.67%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.89538,72706/09/20160.55%67.29%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.84136,55703/31/20170.47%0.58%
+SSRG05/03/2016an affiliate of RoundTable Healthcare Partners (N/A)All Cash$140.3 million$13.10$13.0415,14309/30/20160.46%1.45%
+ELRC05/31/2016Platinum Equity (N/A)All Cash$323.4 million$13.12$13.06109,58209/30/20160.46%1.45%
+SQI05/31/2016affiliates of Accel-KKR (N/A)All Cash$509 million$17.75$17.67369,33709/30/20160.45%1.42%
+IHS03/21/2016Markit Ltd. (MRKT)All StockN/A$120.78$120.24152,43812/31/20160.45%0.79%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$17.59$17.51417,85512/31/20160.44%0.78%
+GAS08/24/2015Southern Company (SO)All Cash$12 billion$66.00$65.74880,14012/31/20160.40%0.69%
+DWRE06/01/2016salesforce.com, inc. (CRM)All Cash$2.8 billion$75.00$74.741,963,67707/31/20160.35%2.31%
+HNSN04/20/2016Auris Surgical Robotics (N/A)All Cash$80 million$4.00$3.9919,04506/30/20160.25%3.81%
+NTI12/21/2015Western Refining, Inc. (WNR)Cash Plus StockN/A$21.54$21.49348,28506/30/20160.24%3.70%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$29.93256,26712/31/20160.23%0.41%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$11.28$11.26640,84406/30/20160.14%2.09%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$24.97768,21412/31/20160.12%0.21%
+OPWR05/02/2016Oracle Corporation (ORCL)All Cash$532 million$10.30$10.29415,17812/31/20160.10%0.17%
+UNTD05/04/2016B. Riley Financial, Inc. (RILY)All Cash$170 million$11.00$10.99261,94409/30/20160.09%0.29%
+MKTO05/31/2016Vista Equity Partners (N/A)All Cash$1.79 billion$35.25$35.221,952,23509/30/20160.09%0.27%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.731,437,84806/30/20160.07%1.14%
+TLN06/03/2016affiliates of Riverstone Holdings LLC (N/A)All Cash$5.2 billion$14.00$13.9913,291,28112/31/20160.07%0.13%
+TXTR04/28/2016Oracle Corporation (ORCL)All Cash$663 million$26.00$25.994,342,35612/31/20160.04%0.07%
+PLCM04/15/2016Mitel Networks Corporation (MITL)Cash Plus Stock$1.96 billlion$11.88$11.88937,62409/30/20160.03%0.10%
+ACAS05/23/2016Ares Capital Corporation (ARCC)Cash Plus Stock$3.4 billion$15.99$15.995,264,03605/31/20170.02%0.02%
+AFOP04/07/2016Corning Inc. (GLW)All Cash$305 million$18.50$18.50317,54306/30/20160.00%0.00%
+FEIC05/27/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$4.2 billion$107.50$107.52612,46501/31/2017-0.02%-0.03%
+CPGX03/17/2016TransCanada Corporation (TRP)All Cash$13 billion$25.50$25.513,803,91112/31/2016-0.04%-0.07%
+ANAC05/16/2016Pfizer Inc. (PFE)All Cash$5.2 billion$99.25$99.303,457,19309/30/2016-0.05%-0.16%
+AVNU01/29/2016Pinnacle Financial Partners Inc. (PNFP)Cash Plus Stock$201.4 million$19.76$19.799,79009/15/2016-0.14%-0.50%
+TE09/05/2015Emera (N/A)All Cash$10.4 billion$27.55$27.591,425,29506/30/2016-0.14%-2.20%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$60.09339,76512/31/2016-0.15%-0.26%
+CPXX05/31/2016Jazz Pharmaceuticals Public Limited Company (JAZZ)All Cash$1.5 billion$30.25$30.311,309,28809/30/2016-0.20%-0.62%
+RRMS05/31/2016SemGroup Corporation (SEMG)All Stock$1.74 billion$26.91$26.97364,95109/30/2016-0.21%-0.65%
+RSE02/25/2016an affiliate of Brookfield Asset Management Inc. (N/A)All Cash$2.8 billion$18.25$18.35646,79009/30/2016-0.54%-1.71%
+XNPT05/23/2016Arbor Pharmaceuticals, LLC (N/A)All Cash$467 million$7.03$7.07831,81509/30/2016-0.57%-1.78%
+KKD05/09/2016JAB Beech Inc. (N/A)All Cash$1.35 billion$21.00$21.15405,56009/30/2016-0.71%-2.23%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$13.15$13.277,91206/30/2016-0.94%-14.31%
+IMS05/03/2016Quintiles Transnational Holdings Inc. (Q)All Stock$9 billion$25.81$26.19796,84112/31/2016-1.44%-2.53%
+FXCB12/08/2015Univest Corporation of Pennsylvania (UVSP)All Stock$244.3 million$19.88$20.3212,31109/30/2016-2.16%-6.81%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$26.2070009/30/2016-2.29%-7.21%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$15.61$16.045,16509/30/2016-2.67%-8.40%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.92610,41612/15/2016-4.35%-8.27%
+ALXA05/10/2016Grupo Ferrer Internacional, S.A. (N/A)Special ConditionsN/A$0.90$0.94771,56706/30/2016-4.96%-75.48%
+IOC05/20/2016Oil Search Limited (OSH.AX)All Stock$2.2 billion$39.38$41.80220,67309/30/2016-5.79%-18.23%
+WCN01/19/2016Progressive Waste Solutions Ltd. (BIN)All StockN/A$65.65$70.353,619,40006/30/2016-6.68%-101.63%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$5.39$10.1583,75703/31/2015-46.95%39.57%

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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