Merger Arbitrage Mondays – September 12, 2016
For some time now I have wanted to write an article that updates some initial research we did back in 2012 on the success rate of mergers. I finally got a chance to do so last week and you can check out the results here.
Merger activity increased last week for new deals with four new deals announced but we saw a bump in closed deals with ten 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 2016 | 157 |
| Total Number of Deals Not Completed in 2016 | 11 |
| Total Number of Pending Deals |
| Cash Deals | 57 |
| Stock Deals | 18 |
| Stock & Cash Deals | 10 |
| Special Conditions | 7 |
| Total Number of Pending Deals | 92 |
| Total Deal Size | $1052.74096 billion |
New Deals:
- The acquisition of Cepheid (CPHD) by Danaher (DHR) for $4 billion or $53.00 per share in cash.
- The acquisition of Spectra Energy (SE) by Enbridge (ENB) for $28 billion in an all stock deal. Under the terms of the Transaction, Spectra Energy shareholders will receive 0.984 shares of the combined company for each share of Spectra Energy common stock they own.
- The acquisition of Federal-Mogul Holdings (FDML) by Icahn Enterprises (IEP) for $1.6 billion or $9.25 per share in cash.
- The acquisition of Apigee (APIC) by Google (GOOG) for $625 million or $17.40 per share in cash.
Deal Updates:
- On September 8, 2016, Abbott Laboratories (ABT) and Alere (ALR) agreed to work with a mediator to settle their dispute over Abbott’s role in obtaining U.S. antitrust clearance for its $5.8 billion takeover of the diagnostics company.
- On September 9, 2016, Walgreens (WBA) announced that it has been in talks with the Federal Trade Commission (FTC) since its announcement to discuss what actions need to be taken to gain the necessary regulatory blessings of its $17 billion acquisition of RiteAid (RAD).
- September 9, 2016: El Pollo Loco Holdings (LOCO) will replace American Science & Engineering (ASEI) in the S&P SmallCap 600 after the close of trading on Monday, September 12. S&P SmallCap 600 constituent OSI Systems (OSIS) is acquiring American Science & Engineering in a deal expected to be completed soon pending final approvals.
- On September 6, 2016, ChemChina finalized $12.7 billion loan to buy Syngenta (SYT)
Closed Deals:
- The acquisition of Diamond Resorts International (DRII) by Apollo Global Management (APO) on September 2, 2016. It took 65 days for this deal to be completed.
- The acquisition of Tyco International (TYC) by Johnson Controls (JCI) on September 6, 2016. It took 225 days for this deal to be completed.
- The acquisition of ARM Holdings (ARMH) by SoftBank Group on September 6, 2016. It took 50 days for this deal to be completed.
- The acquisition of iDreamSky Technology Limited (DSKY) by Dream Investment Holdings Limited on September 7, 2016. It took 251 days for this deal to be completed.
- The acquisition of Sequenom (SQNM) by Laboratory Corporation of America (LH) on September 7, 2016. It took 42 days for this deal to be completed.
- The acquisition of Elizabeth Arden (RDEN) by Revlon (REV) on September 7, 2016. It took 83 days for this deal to be completed.
- The acquisition of Resource America (REXI) by C-III Capital Partners on September 9, 2016. It took 109 days for this deal to be completed.
- The acquisition of First Clover Leaf Financial (FCLF) by First Mid-Illinois Bancshares (FMBH) on September 8, 2016. It took 135 days for this deal to be completed.
- The acquisition of Your Community Bankshares (YCB) by WesBanco (WSBC) on September 10, 2016. It took 130 days for this deal to be completed.
- The acquisition of TiVo (TIVO) by Rovi Corporation (ROVI) on September 8, 2016. It took 132 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| HTCH | 11/02/2015 | TDK Corporation (N/A) | $4.00 | $1.37 | 09/30/2016 | 191.97% | 3892.74% |
| ALR | 02/01/2016 | Abbott Laboratories (ABT) | $56.00 | $42.34 | 12/31/2016 | 32.26% | 107.05% |
| CI | 07/24/2015 | Anthem, Inc. (ANTM) | $168.77 | $128.45 | 03/31/2017 | 31.39% | 57.29% |
| SCTY | 08/01/2016 | Tesla Motors (TSLA) | $21.39 | $16.77 | 04/30/2017 | 27.56% | 43.74% |
| HUM | 07/03/2015 | Aetna Inc. (AET) | $221.77 | $176.50 | 12/31/2016 | 25.65% | 85.11% |
| MHGC | 05/09/2016 | SBE (N/A) | $2.25 | $1.86 | 12/31/2016 | 20.97% | 69.57% |
| APOL | 02/08/2016 | A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) | $10.00 | $8.35 | 08/31/2016 | 19.76% | -601.05% |
| FGL | 11/09/2015 | Anbang Insurance Group Co., Ltd. (N/A) | $26.80 | $22.67 | 06/30/2016 | 18.22% | -89.86% |
| WGBS | 05/13/2016 | Takara Bio USA Holdings, Inc. (N/A) | $0.95 | $0.82 | 03/31/2017 | 15.85% | 28.93% |
| LXK | 04/19/2016 | consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) | $40.50 | $36.05 | 12/31/2016 | 12.34% | 40.96% |
List of all pending deals:
The list of all pending deals is only available to InsideArbitrage Premium and Plus members.
Disclaimer: I hold long positions in Apollo Education (APOL), Monster Worldwide (MWW) and Hutchinson Technology (HTCH). 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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