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Merger Arbitrage Mondays – July 11, 2016

  • July 10, 2016

Merger activity increased last week with four new deals announced and four 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 2016112
Total Number of Deals Not Completed in 20169
Total Number of Pending Deals
Cash Deals55
Stock Deals21
Stock & Cash Deals13
Special Conditions9
Total Number of Pending Deals98
Total Deal Size$910.46 billion

New Deals:

  1. The acquisition of Nortek (NTK) by Melrose Industries for $2.8 billion or $86.00 per share in cash.
  2. The acquisition of The WhiteWave Foods Company (WWAV) by Danone for $12.5 billion or $56.25 per share in cash.
  3. The acquisition of AVG Technologies (AVG) by Avast Software for $1.3 billion or $25.00 per share in cash.
  4. The acquisition of Polycom (PLCM) by Siris Capital Group for $2 billion or $12.50 per share in cash.

Deal Updates:

  1. On June 2, 2016, Anbang withdrew its application to buy Fidelity & Guaranty Life (FGL) after failing to provide information requested for processing the deal. Anbang will try a second time with a “refiled acquisition application” to the New York regulator.
  2. On July 5, 2016, IHS (IHS) and Markit (MRKTannounced that in connection with the completion of the previously announced merger between IHS and Markit, the combined company, which will be renamed IHS Markit Ltd., will be listed on the Nasdaq Global Select Market under the new trading symbol “INFO.”
  3. On July 8, 2016, Polycom (PLCM) announced that its board of directors has approved the termination of the company’s previously announced merger agreement with Mitel Networks Corporation (MITL). Polycom also announced that its Board of Directors has unanimously determined Siris Capital Group’s’ offer to constitute a “Company Superior Proposal” under the terms of its merger agreement with Mitel.
  4. On July 8, 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 21, 2016.
  5. On July 8, 2016, Aetna (AET) executives met with top Justice Department antitrust officials to convince the government that asset sales it proposed would address potential competitive problems that could threaten its deal to buy rival Humana (HUM).
  6. On July 8, 2016, Ku6 Media (KUTV) announced today that, at an extraordinary general meeting, the Company’s shareholders voted in favor of the proposal to authorize and approve the previously announced Agreement and Plan of Merger among the Company, Shanda Investment Holdings Limited and Ku6 Acquisition Company Limited.
  7. On July 9, 2016, WellCare Health Plans (WCG) and Centene (CNC) made competing offers for the Medicare Advantage insurance plans that Aetna (AET) is looking to shed as it seeks clearance for its acquisition of Humana (HUM).

Closed Deals:

  1. The acquisition of Xenoport (XNPT) by Arbor Pharmaceuticals on July 5, 2016. It took 43 days for this deal to be completed.
  2. The acquisition of Symmetry Surgical (SSRG) by an affiliate of RoundTable Healthcare Partners on July 5, 2016. It took 63 days for this deal to be completed.
  3. The acquisition of RR Media (RRM) by SES on July 6, 2016. It took 131 days for this deal to be completed.
  4. The acquisition of Rouse Properties (RSE) by an affiliate of Brookfield Asset Management on July 6, 2016. It took 132 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

HUM07/03/2015Aetna Inc. (AET)$222.99$158.1512/31/201641.00%86.50%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$39.7812/31/201640.77%86.03%
CI07/24/2015Anthem, Inc. (ANTM)$171.48$129.6012/31/201632.32%68.18%
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$7.1012/31/201626.76%56.46%
HTCH11/02/2015TDK Corporation (N/A)$4.00$3.3009/30/201621.21%95.59%
WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)$0.95$0.82403/31/201715.29%21.22%
AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)$6.66$5.8312/31/201614.24%30.04%
DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)$6.70$5.9012/31/201613.56%28.61%
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$9.0508/31/201610.50%75.13%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$35.3012/31/201610.20%21.52%

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

+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$222.99$158.155,565,47712/31/201641.00%86.50%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$39.78581,51312/31/201640.77%86.03%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$171.48$129.602,226,24512/31/201632.32%68.18%
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$7.1023,777,39212/31/201626.76%56.46%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.3066,59409/30/201621.21%95.59%
+WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)Special Conditions$18 million$0.95$0.82448,13103/31/201715.29%21.22%
+AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)All Cash$748.36 million$6.66$5.8338,35812/31/201614.24%30.04%
+DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)All Cash$556 million$6.70$5.90201,78412/31/201613.56%28.61%
+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$9.05874,08608/31/201610.50%75.13%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$35.30922,07212/31/201610.20%21.52%
+BNK11/09/2015Bank of the Ozarks, Inc. (OZRK)Special Conditions$402.5 million$25.00$22.9584,21206/30/20168.93%0.00%
+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$37.60344,03212/31/20167.71%16.27%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.4431,77209/30/20167.38%33.24%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.20$13.34309,11108/15/20166.43%67.06%
+WR05/31/2016Great Plains Energy Incorporated (GXP)Special Conditions$12.2 billion$60.00$56.421,022,83303/31/20176.35%8.81%
+KUTV04/05/2016Shanda Investment Holdings Limited (N/A)All CashN/A$1.08$1.02376,47212/31/20165.88%12.41%
+PBCP06/02/2016Prudential Bancorp, Inc. (PBIP)Special Conditions$38.1 million$11.28$10.7530012/31/20164.93%10.40%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.1025,47408/15/20164.84%50.46%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.3621,74206/30/20164.79%0.00%
+STRZA06/30/2016Lions Gate Entertainment Corp. (LGF)Cash Plus Stock$4.4 billion$30.96$29.602,685,59612/31/20164.59%9.68%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$10.241,253,14209/30/20164.49%20.24%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$108.39483,13903/31/20174.25%5.90%
+MHGC05/09/2016SBE (N/A)All Cash$794 million$2.25$2.16149,51512/31/20164.17%8.79%
+FMD06/02/2016FP Resources USA Inc. (N/A)All Cash$65.5 million$5.05$4.864,98309/30/20163.91%17.62%
+SCNB06/27/2016People’s United Financial Inc. (PBCT)All Stock$402 million$33.00$31.80119,10712/31/20163.76%7.94%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$76.70984,99107/31/20163.69%67.34%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$32.34419,52706/30/20163.59%0.00%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$83.23$80.581,186,61912/31/20163.29%6.93%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$34.97709,70309/30/20162.95%13.27%
+LNKD06/13/2016Microsoft Corporation (MSFT)All Cash$26.2 billion$196.00$190.441,253,70412/31/20162.92%6.16%
+TLN06/03/2016affiliates of Riverstone Holdings LLC (N/A)All Cash$5.2 billion$14.00$13.631,595,71412/31/20162.71%5.73%
+EVHC06/15/2016AmSurg Corp. (AMSG)All Stock$7.66 billion$26.27$25.704,144,84812/31/20162.23%4.70%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$47.80$46.78609,99912/31/20162.18%4.60%
+PLCM07/08/2016Siris Capital Group, LLC (N/A)All Cash$2 billion$12.50$12.2586,480,09009/30/20162.04%9.20%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$43.62$42.774,975,11909/30/20161.99%8.96%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$17.20$16.88941,93212/31/20161.88%3.96%
+AXLL06/10/2016Westlake Chemical Corporation (WLK)All Cash$3.8 billion$33.00$32.401,878,83812/31/20161.85%3.91%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$18.82$18.481,28612/31/20161.83%3.86%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.23$14.96403,11512/31/20161.80%3.81%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.661,726,65607/21/20161.73%63.12%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$31.99126,76912/31/20161.59%3.36%
+MESG05/23/2016Siris Capital Group, LLC (N/A)All Cash$643 million$25.00$24.61905,37609/30/20161.58%7.14%
+SMT05/26/2016Foxconn Technology Group (N/A)All CashN/A$4.50$4.4350,60407/31/20161.58%28.84%
+LSBG05/05/2016Bar Harbor Bankshares (BHB)All Stock$143 million$17.41$17.1431,56403/31/20171.57%2.19%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$9.84$9.691,920,07809/30/20161.56%7.03%
+QLIK06/02/2016Thoma Bravo, LLC (N/A)All Cash$3 billion$30.50$30.041,018,47809/30/20161.53%6.90%
+MRD05/16/2016Range Resources Corporation (RRC)All Stock$4.4 billion$16.55$16.301,151,17612/31/20161.53%3.22%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.38$12.198,56812/31/20161.52%3.20%
+AVG07/07/2016Avast Software (N/A)All Cash$1.3 billion$25.00$24.634,426,46410/15/20161.50%5.71%
+HTS04/11/2016Annaly Capital Management, Inc. (NLY)All Stock$1.5 billion$16.43$16.20737,22309/30/20161.41%6.37%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$56.26311,06501/01/20171.32%2.76%
+CERE06/17/2016Land O’Lakes (N/A)All Cash$17.2 million$0.40$0.395296,74709/30/20161.27%5.70%
+YCB05/03/2016WesBanco Inc. (WSBC)Cash Plus Stock$221 million$37.56$37.1511,45912/31/20161.12%2.36%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$20.00$19.782,356,41109/30/20161.10%4.98%
+RDEN06/16/2016Revlon, Inc. (REV)All Cash$870 million$14.00$13.87540,21112/31/20160.94%1.98%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$74.44$73.75834,53106/30/20160.94%0.00%
+MGN05/24/2016Hecla Mining Co. (HL)All StockN/A$1.34$1.33237,69109/30/20160.89%4.03%
+RLOC06/27/2016Gannett Co., Inc. (GCI)All Cash$156 million$4.60$4.56591,09009/30/20160.88%3.95%
+CLBH06/22/2016First Bancorp (FBNC)All Stock$97.3 million$18.14$17.9858,08103/31/20170.87%1.21%
+SAAS05/18/2016NICE Systems Ltd. (NICE)All Cash$940 million$14.00$13.88462,20312/31/20160.86%1.82%
+HNSN04/20/2016Auris Surgical Robotics (N/A)All Cash$80 million$4.00$3.9750,46806/30/20160.76%0.00%
+MKTO05/31/2016Vista Equity Partners (N/A)All Cash$1.79 billion$35.25$34.99374,14409/30/20160.74%3.35%
+FEIC05/27/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$4.2 billion$107.50$106.78361,83201/31/20170.67%1.21%
+HTWR06/27/2016Medtronic plc (MDT)All Cash$1.1 billion$58.00$57.64437,78410/28/20160.62%2.09%
+NKA06/14/2015Brookfield Infrastructure (N/A)All Cash$911.9 million$4.23$4.2138,24712/31/20160.48%1.00%
+REXI05/23/2016C-III Capital Partners (N/A)All Cash$270 million$9.78$9.74134,13011/15/20160.41%1.18%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$29.90345,87112/31/20160.33%0.71%
+DRII06/29/2016Apollo Global Management, LLC (APO)All Cash$2.2 billion$30.25$30.151,744,06912/31/20160.33%0.70%
+ELRC05/31/2016Platinum Equity (N/A)All Cash$382.2 million$15.50$15.45133,00609/30/20160.32%1.46%
+QLGC06/15/2016Cavium, Inc. (CAVM)Cash Plus Stock$1.36 billion$14.88$14.83599,37009/30/20160.31%1.39%
+EXAM04/27/2016an affiliate of Leonard Green & Partners, L.P. (N/A)All Cash$2.2 billion$35.05$34.97841,99309/30/20160.23%1.03%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.91518,17812/31/20160.15%0.32%
+DWA04/28/2016NBCUniversal (N/A)All Cash$3.8 billion$41.00$40.952,434,70912/31/20160.12%0.26%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$10.76$10.75472,74106/30/20160.11%0.00%
+LDRH06/07/2016Zimmer Biomet Holdings, Inc. (ZBH)All Cash$1 billion$37.00$36.971,150,03109/30/20160.08%0.37%
+SQI05/31/2016affiliates of Accel-KKR (N/A)All Cash$509 million$17.75$17.741,042,17909/30/20160.06%0.25%
+DWRE06/01/2016salesforce.com, inc. (CRM)All Cash$2.8 billion$75.00$74.971,886,55507/31/20160.04%0.73%
+CPXX05/31/2016Jazz Pharmaceuticals Public Limited Company (JAZZ)All Cash$1.5 billion$30.25$30.24468,85309/30/20160.03%0.15%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.99195,78203/31/20170.03%0.04%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.75293,02506/30/20160.00%0.00%
+KKD05/09/2016JAB Beech Inc. (N/A)All Cash$1.35 billion$21.00$21.00742,90909/30/20160.00%0.00%
+IHS03/21/2016Markit Ltd. (MRKT)All StockN/A$113.92$113.97481,67712/31/2016-0.05%-0.10%
+RRMS05/31/2016SemGroup Corporation (SEMG)All Stock$1.74 billion$26.65$26.70122,00809/30/2016-0.20%-0.92%
+TTHI06/30/2016Opko Health, Inc. (OPK)All Stock$60 million$1.54$1.5531,35212/31/2016-0.66%-1.40%
+WWAV07/07/2016Danone (N/A)All Cash$12.5 billion$56.25$56.6410,799,20912/31/2016-0.69%-1.45%
+BITI01/19/2016Acorda Therapeutics, Inc. (ACOR)All Cash$363 million$25.60$25.80N/A09/30/2016-0.78%-3.49%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$25.231,067,42912/31/2016-0.91%-1.92%
+IMS05/03/2016Quintiles Transnational Holdings Inc. (Q)All Stock$9 billion$27.42$27.682,171,12212/31/2016-0.93%-1.97%
+ASEI06/21/2016OSI Systems, Inc. (OSIS)All Cash$269 million$37.00$37.3746,30512/31/2016-0.99%-2.09%
+NTK07/06/2016Melrose Industries PLC (N/A)All Cash$2.8 billion$86.00$87.25239,11008/31/2016-1.43%-10.25%
+ACAS05/23/2016Ares Capital Corporation (ARCC)Cash Plus Stock$3.4 billion$15.60$15.86913,14705/31/2017-1.62%-1.83%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$12.51$12.7313,69806/30/2016-1.70%56.56%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.56396,74012/15/2016-2.39%-5.56%
+LPSB03/10/2016Horizon Bancorp (HBNC)All Stock$94.1 million$16.19$16.869,14709/30/2016-3.97%-17.89%
+SKUL06/24/2016Incipio LLC (N/A)All Cash$177 million$5.75$6.07288,37109/30/2016-5.27%-23.76%
+IOC05/20/2016Oil Search Limited (OSH.AX)All Stock$2.2 billion$42.27$47.97403,47209/30/2016-11.87%-53.51%
+AEGR06/15/2016QLT Inc. (QLTI)All Stock$267.27 million$1.47$1.67563,55312/31/2016-12.18%-25.70%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.55$12.09115,99503/31/2015-62.38%48.65%

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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