×

Subscribe Today

Get our free articles delivered directly to your email!

Continue reading

Merger Arbitrage Mondays – July 25, 2016

  • July 24, 2016

Merger activity increased last week with six 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 2016122
Total Number of Deals Not Completed in 201610
Total Number of Pending Deals
Cash Deals56
Stock Deals17
Stock & Cash Deals14
Special Conditions9
Total Number of Pending Deals96
Total Deal Size$950.95 billion

New Deals:

  1. The acquisition of ARM Holdings (ARMH) by SoftBank Group for $32 billion. Under the terms of the acquisition, each ARM Shareholder will be entitled to receive 1,700 pence in cash for each ARM share. Each ARM ADR represents three underlying ARM shares.
  2. The acquisition of Golden Enterprises (GLDC) by Utz Quality Foods for $135 million or $12.00 per share in cash.
  3. The acquisition of Joy Global (JOY) by Komatsu America for $3.7 billion or $28.30 per share in cash.
  4. The acquisition of Relypsa (RLYP) by Galenica Group for $1.53 billion or $32.00 per share in cash.
  5. The acquisition of Yadkin Financial Corporation (YDKN) by F.N.B. Corporation (FNB) for $1.4 billion in an all stock deal. Upon completion of the merger, shareholders of Yadkin Financial will receive 2.16 shares of FNB common stock for each common share of Yadkin.
  6. The acquisition of InterOil Corporation (IOC) by Exxon Mobil Corporation (XOM) for $2.5 billion or $45.00 per share. The number of ExxonMobil shares paid per share of InterOil will be calculated based on the volume weighted average price (VWAP) of ExxonMobil shares over a measuring period of 10 days ending shortly before the closing date. A Contingent Resource Payment (CRP), which will be an additional cash payment of $7.07 per share for each trillion cubic feet equivalent (tcfe) gross resource certification of the Elk-Antelope field above 6.2 tcfe, up to a maximum of 10 tcfe. The CRP will not be transferrable and will not be listed on any exchange. We are treating this as a special conditions deal with an estimated closing price of $52.07 consisting of $45 of ExxonMobil shares and $7.07 of the CRP payment with the realization that both the share portion and the CRP payment could be higher or lower at closing.

Deal Updates:

  1. On July 20, 2016, shareholders of The Dow Chemical (DOW) and DuPont (DD) approved the merger of equals between the two companies.
  2. On July 21, 2016, InterOil Corporation’s Board of Directors determined that ExxonMobil’s (XOM) offer to acquire InterOil (IOCconstitutes a “Superior Proposal,” as defined in InterOil’s arrangement agreement with Oil Search Limited and InterOil has provided notice of such determination to Oil Search.
  3. On July 22, 2016, The Justice Department filed lawsuits to block two megadeals in the health insurance industry, saying the deals would harm competition across the country. The DOJ filed suits to block the mergers of Anthem (ANTM) and Cigna (CI)  as well as Aetna (AET) and Humana (HUM).

Closed Deals:

  1. The acquisition of Laporte Bancorp (LPSB) by Horizon Bancorp (HBNC) on July 18, 2016. It took 130 days for this deal to be completed.
  2. The acquisition of Niska Gas Storage Partners (NKA) by Brookfield Infrastructure on July 19, 2016. It took 401 days for this deal to be completed.
  3. The acquisition of Biotie Therapies (BITI) by Acorda Therapeutics (ACOR) on July 19, 2016. It took 182 days for this deal to be completed.
  4. The acquisition of C1 Financial (BNK) by Bank of the Ozarks (OZRK) on July 21, 2016. It took 255 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

RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$9.00$6.8212/31/201631.96%73.38%
HUM07/03/2015Aetna Inc. (AET)$225.89$176.0512/31/201628.31%64.98%
ALR02/01/2016Abbott Laboratories (ABT)$56.00$43.9612/31/201627.39%62.87%
CI07/24/2015Anthem, Inc. (ANTM)$177.04$146.0012/31/201621.26%48.81%
HTCH11/02/2015TDK Corporation (N/A)$4.00$3.3009/30/201621.21%115.56%
IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)$38.90$34.2612/31/201613.54%31.09%
AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)$6.66$5.93512/31/201612.22%28.04%
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$8.9608/31/201611.61%114.50%
CVT04/18/2016affiliates of Vista Equity Partners (N/A)$36.00$32.4309/30/201611.01%59.97%
DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)$6.70$6.1612/31/20168.77%20.12%

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

+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$9.00$6.8210,765,93112/31/201631.96%73.38%
+HUM07/03/2015Aetna Inc. (AET)Cash Plus Stock$37 billion$225.89$176.055,476,56812/31/201628.31%64.98%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.8 billion$56.00$43.96360,22912/31/201627.39%62.87%
+CI07/24/2015Anthem, Inc. (ANTM)Cash Plus Stock$54.2 billion$177.04$146.003,964,64712/31/201621.26%48.81%
+HTCH11/02/2015TDK Corporation (N/A)Special Conditions$126 million$4.00$3.3052,02909/30/201621.21%115.56%
+IM02/17/2016Tianjin Tianhai Investment Company, Ltd. (N/A)All Cash$6 billion$38.90$34.262,399,26312/31/201613.54%31.09%
+AIXG05/23/2016Fujian Grand Chip Investment Fund LP (N/A)All Cash$748.36 million$6.66$5.93511,64712/31/201612.22%28.04%
+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$8.96396,01108/31/201611.61%114.50%
+CVT04/18/2016affiliates of Vista Equity Partners (N/A)All Cash$1.65 billion$36.00$32.432,133,80309/30/201611.01%59.97%
+DANG05/31/2016Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A)All Cash$556 million$6.70$6.16184,43712/31/20168.77%20.12%
+YDKN07/21/2016F.N.B. Corporation (FNB)All Cash$1.4 billion$27.35$25.401,842,43103/31/20177.68%11.25%
+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$37.78272,55512/31/20167.20%16.53%
+HE12/03/2014NextEra Energy, Inc. (NEE)Special Conditions$4.3 billion$33.50$31.38993,00306/30/20166.76%0.00%
+WR05/31/2016Great Plains Energy Incorporated (GXP)Special Conditions$12.2 billion$60.00$56.23907,39603/31/20176.70%9.83%
+IOC07/21/2016Exxon Mobil Corporation (XOM)Special Conditions$2.5 billion$52.07$49.191,257,35809/30/20165.85%31.90%
+AMTG02/26/2016Apollo Commercial Real Estate Finance, Inc. (ARI)Cash Plus Stock$641 million$14.49$13.7267,57008/15/20165.58%96.98%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$107.03454,98003/31/20175.58%8.18%
+WGBS05/13/2016Takara Bio USA Holdings, Inc. (N/A)Special Conditions$18 million$0.95$0.901287,28903/31/20175.44%7.97%
+PBCP06/02/2016Prudential Bancorp, Inc. (PBIP)Special Conditions$38.1 million$11.28$10.7060012/31/20165.42%12.44%
+STRZA06/30/2016Lions Gate Entertainment Corp. (LGF)Cash Plus Stock$4.4 billion$32.31$30.74659,87512/31/20165.12%11.76%
+NHLD04/28/2016Fortress Biotech, Inc. (FBIO)All CashN/A$3.25$3.10133,34008/15/20164.84%84.10%
+NPD03/16/2016China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A)All Cash$258.66 million$2.62$2.5130,54709/30/20164.38%23.87%
+DSKY12/31/2015Dream Investment Holdings Limited (N/A)All CashN/A$14.00$13.4941,80006/30/20163.78%0.00%
+SCNB06/27/2016People’s United Financial Inc. (PBCT)All Stock$402 million$34.31$33.1825,23812/31/20163.40%7.81%
+STJ04/28/2016Abbott Laboratories (ABT)Cash Plus Stock$25 billion$84.34$81.701,608,84212/31/20163.23%7.42%
+LNKD06/13/2016Microsoft Corporation (MSFT)All Cash$26.2 billion$196.00$189.95549,54012/31/20163.19%7.31%
+HOT11/16/2015Marriott International, Inc. (MAR)Special Conditions$13.6 billion$79.53$77.52844,26007/31/20162.59%157.73%
+ITC02/09/2016Fortis Inc. (FTS.TO)Cash Plus Stock$11.3 billion$47.74$46.59639,06612/31/20162.47%5.67%
+FMD06/02/2016FP Resources USA Inc. (N/A)All Cash$65.5 million$5.05$4.938,55009/30/20162.43%13.26%
+OSHC07/13/2016OceanFirst Financial Corp. (OCFC)Cash Plus Stock$145.6 million$22.49$21.9630,28001/31/20172.39%4.60%
+TLN06/03/2016affiliates of Riverstone Holdings LLC (N/A)All Cash$5.2 billion$14.00$13.71327,08712/31/20162.12%4.86%
+ARMH07/18/2016SoftBank Group (SFBTY)All Cash$32 billion$67.32$66.031,729,11212/31/20161.95%4.48%
+MGN05/24/2016Hecla Mining Co. (HL)All StockN/A$1.34$1.3146,40309/30/20161.93%10.49%
+RSTI03/16/2016Coherent Inc. (COHR)All Cash$942 million$32.50$31.8965,53212/31/20161.91%4.39%
+TIVO04/29/2016Rovi Corporation (ROVI)Special Conditions$1.1 billion$10.70$10.50397,06909/30/20161.90%10.38%
+AF10/29/2015New York Community Bancorp Inc. (NYCB)Cash Plus Stock$2 billion$15.27$15.00513,08812/31/20161.80%4.13%
+MRD05/16/2016Range Resources Corporation (RRC)All Stock$4.4 billion$15.42$15.161,738,77912/31/20161.74%3.99%
+AXLL06/10/2016Westlake Chemical Corporation (WLK)All Cash$3.8 billion$33.00$32.461,709,76012/31/20161.66%3.82%
+EVHC06/15/2016AmSurg Corp. (AMSG)All Stock$7.66 billion$26.48$26.051,718,92212/31/20161.66%3.81%
+FCLF04/26/2016First Mid-Illinois Bancshares, Inc. (FMBH)All Stock$90 million$12.54$12.369,26912/31/20161.48%3.40%
+QLIK06/02/2016Thoma Bravo, LLC (N/A)All Cash$3 billion$30.50$30.06991,29009/30/20161.46%7.97%
+WWAV07/07/2016Danone (N/A)All Cash$12.5 billion$56.25$55.443,980,18512/31/20161.46%3.35%
+CLBH06/22/2016First Bancorp (FBNC)All Stock$97.3 million$18.73$18.474,28803/31/20171.39%2.04%
+SAAS05/18/2016NICE Systems Ltd. (NICE)All Cash$940 million$14.00$13.811,127,37812/31/20161.38%3.16%
+FCS11/18/2015ON Semiconductor Corp. (ON)All Cash$2.4 billion$20.00$19.73710,27307/21/20161.37%0.00%
+MHGC05/09/2016SBE (N/A)All Cash$794 million$2.25$2.22362,16112/31/20161.35%3.10%
+VA04/04/2016Alaska Air Group, Inc. (ALK)All Cash$4 billion$57.00$56.26136,71801/01/20171.32%3.00%
+CBNK04/04/2016Westfield Financial Inc. (WFD)All Stock$110 million$19.08$18.8440312/31/20161.30%2.98%
+KLAC10/21/2015Lam Research Corporation (LRCX)Cash Plus Stock$10.6 billion$77.03$76.06443,13006/30/20161.27%0.00%
+JOY07/21/2016Komatsu America Corp. (N/A)All Cash$3.7 billion$28.30$27.9511,923,18206/30/20171.25%1.34%
+FEIC05/27/2016Thermo Fisher Scientific, Inc. (TMO)All Cash$4.2 billion$107.50$106.31161,59301/31/20171.12%2.15%
+IMPR07/13/2016an affiliate of Thoma Bravo, LLC (N/A)All Cash$544 million$19.25$19.04498,84412/31/20161.10%2.53%
+GLDC07/19/2016Utz Quality Foods, Inc. (N/A)All Cash$135 million$12.00$11.8780,72412/31/20161.10%2.51%
+MESG05/23/2016Siris Capital Group, LLC (N/A)All Cash$643 million$25.00$24.77264,37909/30/20160.93%5.06%
+PLCM07/08/2016Siris Capital Group, LLC (N/A)All Cash$2 billion$12.50$12.392,817,15009/30/20160.89%4.84%
+YCB05/03/2016WesBanco Inc. (WSBC)Cash Plus Stock$221 million$37.77$37.453,84512/31/20160.85%1.94%
+AVG07/07/2016Avast Software (N/A)All Cash$1.3 billion$25.00$24.82372,74710/15/20160.73%3.23%
+EDE02/09/2016Algonquin Power & Utilities Corp. (AQN.TO)All Cash$2.4 billion$34.00$33.76432,27703/31/20170.71%1.04%
+RDEN06/16/2016Revlon, Inc. (REV)All Cash$870 million$14.00$13.91243,79312/31/20160.65%1.49%
+FMER01/26/2016Huntington Bancshares Incorporated (HBAN)Cash Plus Stock$3.4 billion$20.96$20.85672,92709/30/20160.54%2.92%
+HTWR06/27/2016Medtronic plc (MDT)All Cash$1.1 billion$58.00$57.76177,59110/28/20160.42%1.60%
+MKTO05/31/2016Vista Equity Partners (N/A)All Cash$1.79 billion$35.25$35.12662,84009/30/20160.37%2.02%
+QLGC06/15/2016Cavium, Inc. (CAVM)Cash Plus Stock$1.36 billion$15.23$15.18650,98009/30/20160.35%1.92%
+TYC01/25/2016Johnson Controls Inc. (JCI)All Stock$16.5 billion$45.91$45.765,393,94409/30/20160.33%1.78%
+REXI05/23/2016C-III Capital Partners (N/A)All Cash$270 million$9.78$9.7515,99811/15/20160.31%0.99%
+SGNT07/11/2016Nichi-Iko Pharmaceutical Co., Ltd (N/A)All Cash$736 million$21.75$21.69847,28303/31/20170.28%0.41%
+CERE06/17/2016Land O’Lakes (N/A)All Cash$17.2 million$0.40$0.399132,49409/30/20160.25%1.37%
+PNY10/26/2015Duke Energy Corporation (DUK)All Cash$6.7 billion$60.00$59.86272,75312/31/20160.23%0.54%
+LSBG05/05/2016Bar Harbor Bankshares (BHB)All Stock$143 million$18.72$18.687,10303/31/20170.22%0.33%
+SMT05/26/2016Foxconn Technology Group (N/A)All CashN/A$4.50$4.497,28507/31/20160.22%13.55%
+RLOC06/27/2016Gannett Co., Inc. (GCI)All Cash$156 million$4.60$4.59104,38009/30/20160.22%1.19%
+ELRC05/31/2016Platinum Equity (N/A)All Cash$382.2 million$15.50$15.4738,28909/30/20160.19%1.06%
+PKY04/29/2016Cousins Properties Incorporated (CUZ)All Stock$1.95 billion$17.93$17.90328,36612/31/20160.17%0.38%
+DRII06/29/2016Apollo Global Management, LLC (APO)All Cash$2.2 billion$30.25$30.201,667,47412/31/20160.17%0.38%
+HNSN04/20/2016Auris Surgical Robotics (N/A)All Cash$80 million$4.00$3.99532,09506/30/20160.13%0.00%
+TUMI03/03/2016Samsonite International S.A. (N/A)All Cash$1.8 billion$26.75$26.72587,81106/30/20160.11%0.00%
+KKD05/09/2016JAB Beech Inc. (N/A)All Cash$1.35 billion$21.00$20.98626,03909/30/20160.10%0.52%
+SQI05/31/2016affiliates of Accel-KKR (N/A)All Cash$509 million$17.75$17.74443,35909/30/20160.06%0.31%
+DWA04/28/2016NBCUniversal (N/A)All Cash$3.8 billion$41.00$40.991,441,08812/31/20160.02%0.06%
+FNFG10/30/2015KeyCorp. (KEY)Cash Plus Stock$4.1 billion$10.33$10.332,380,81909/30/20160.01%0.04%
+EXAM04/27/2016an affiliate of Leonard Green & Partners, L.P. (N/A)All Cash$2.2 billion$35.05$35.05191,88509/30/20160.00%0.00%
+RLYP07/21/2016Galenica Group (N/A)All Cash$1.53 billion$32.00$32.0713,218,94609/30/2016-0.22%-1.19%
+WIBC12/07/2015BBCN Bancorp, Inc. (BBCN)All Stock$1 billion$11.17$11.20370,29307/29/2016-0.27%-24.45%
+ASEI06/21/2016OSI Systems, Inc. (OSIS)All Cash$269 million$37.00$37.1227,01612/31/2016-0.32%-0.74%
+NTK07/06/2016Melrose Industries PLC (N/A)All Cash$2.8 billion$86.00$86.3626,89308/31/2016-0.42%-4.11%
+RRMS05/31/2016SemGroup Corporation (SEMG)All Stock$1.74 billion$25.64$25.7880,73609/30/2016-0.56%-3.03%
+STR02/01/2016Dominion Resources, Inc. (D)All Cash$4.4 billion$25.00$25.17487,51812/31/2016-0.68%-1.55%
+IMS05/03/2016Quintiles Transnational Holdings Inc. (Q)All Stock$9 billion$28.43$28.631,066,46412/31/2016-0.71%-1.62%
+ACAS05/23/2016Ares Capital Corporation (ARCC)Cash Plus Stock$3.4 billion$16.15$16.36480,28605/31/2017-1.26%-1.49%
+COB11/23/2015Capital Bank Financial Corp. (CBF)All Stock$350 million$13.02$13.2611,33906/30/2016-1.77%25.91%
+MEG01/27/2016Nexstar Broadcasting Group, Inc. (NXST)Special Conditions$4.6 billion$17.14$17.76359,51712/15/2016-3.49%-8.91%
+CKEC03/03/2016AMC Entertainment Holdings, Inc. (AMC)All Cash$1.1 billion$30.00$31.13221,65712/31/2016-3.63%-8.33%
+SKUL06/24/2016Incipio LLC (N/A)All Cash$177 million$5.75$5.97200,76009/30/2016-3.69%-20.08%
+AEGR06/15/2016QLT Inc. (QLTI)All Stock$267.27 million$1.41$1.46160,24612/31/2016-3.76%-8.64%
+TTHI06/30/2016Opko Health, Inc. (OPK)All Stock$60 million$1.56$1.62187,36912/31/2016-3.99%-9.17%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$4.64$10.98184,91012/31/2016-57.73%-132.52%

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.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria