Merger Arbitrage Mondays – November 28, 2016
Merger Activity decreased last week with four new deals announced and three 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 | 205 |
| Total Number of Deals Not Completed in 2016 | 16 |
| Total Number of Pending Deals |
| Cash Deals | 56 |
| Stock Deals | 19 |
| Stock & Cash Deals | 13 |
| Special Conditions | 7 |
| Total Number of Pending Deals | 95 |
| Total Deal Size | $1374.85 billion |
New Deals:
- The acquisition of LifeLock (LOCK) by Symantec Corporation (SYMC) for $2.3 billion or $24.00 per share in cash.
- The acquisition of Headwaters Incorporated (HW) by Boral Limited for $2.6 billion or $24.25 per share in cash.
- The acquisition of Applied Micro Circuits Corporation (AMCC) by MACOM Technology Solutions Holdings (MTSI) for $688 million in a cash plus stock deal. Under the terms of the agreement, MACOM intends to commence a tender offer to purchase each outstanding common share of AppliedMicro for approximately $8.36 per share, consisting of $3.25 in cash and 0.1089 MACOM shares per share of AppliedMicro.
- The acquisition of Energy Transfer Partners (ETP) by Sunoco Logistics Partners (SXL) for $19.93 billion in an all stock deal. Under the terms of the transaction, ETP unitholders will receive 1.5 common units of SXL for each common unit of ETP they own.
Deal Updates:
- On November 21, 2016, Anthem (ANTM) Cigna (CI) and the U.S. government offered a federal judge very different views of the impact their proposed $48 billion combination will have on health-insurance markets.
- On November 21, 2016, Grand Chip Investment GmbH provided certain updated information with respect to the Committee on Foreign Investment in the United States (“CFIUS”) approval process in connection with its voluntary public takeover offer to the shareholders of AIXTRON SE (AIXXF). CFIUS did not issue a close-out letter, but rather informed the Bidder and AIXTRON that, from CFIUS’ perspective, there are unresolved U.S. national security concerns regarding the proposed transaction, and CFIUS does not believe that those national security concerns can be resolved by mitigation proposals that the parties had presented or other mitigation measures CFIUS had considered. CFIUS informed the Bidder and AIXTRON that, if the parties did not withdraw their CFIUS notice and abandon the transaction, the matter would be referred to the President of the United States, who has the power to prohibit the transaction.
- On November 22, 2016, The WhiteWave Foods Company (WWAV) announced that holders of a majority in aggregate principal amount of its outstanding $500 million 5.375% Senior Notes due 2022 have delivered valid consents in connection with the Company’s previously announced consent solicitation for certain proposed amendments to the indenture governing the 2022 Notes.
- On November 23, 2016, Prudential Bancorp (PBIP) and Polonia Bancorp (PBCP), jointly announced that the previously announced election deadline for shareholders of Polonia to submit their election choices with respect to the form of merger consideration desired in connection with the proposed merger of Polonia with and into the Company has been extended from November 23, 2016, the current expiration date, to December 22, 2016.
Closed Deals:
- The acquisition of SolarCity (SCTY) by Tesla Motors (TSLA) on November 22, 2016. It took 113 days for this deal to be completed.
- The acquisition of CIFC (CIFC) by F.A.B. Partners on November 22, 2016. It took 95 days for this deal to be completed.
- The acquisition of EndoChoice Holdings (GI) by Boston Scientific Corporation (BSX). It took 56 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| ALR | 02/01/2016 | Abbott Laboratories (ABT) | $56.00 | $39.19 | 12/31/2016 | 42.89% | 474.43% |
| AIXXF | 05/23/2016 | Fujian Grand Chip Investment Fund LP (N/A) | $6.66 | $5.02 | 12/31/2016 | 32.67% | 361.34% |
| CI | 07/24/2015 | Anthem, Inc. (ANTM) | $177.97 | $138.67 | 03/31/2017 | 28.34% | 84.10% |
| MON | 09/14/2016 | Bayer AG (BAYRY) | $128.00 | $102.56 | 12/31/2017 | 24.80% | 22.75% |
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.36 | 06/30/2017 | 24.54% | 41.86% |
| SYT | 02/03/2016 | ChemChina (N/A) | $96.01 | $77.18 | 01/05/2017 | 24.40% | 234.34% |
| TSL | 08/01/2016 | Investor consortium comprising Mr. Gao and other entities. (N/A) | $11.60 | $10.02 | 03/31/2017 | 15.75% | 46.72% |
| TWX | 10/22/2016 | AT&T, Inc. (T) | $107.50 | $93.20 | 12/31/2017 | 15.34% | 14.07% |
| RAD | 10/27/2015 | Walgreens Boots Alliance, Inc. (WBA) | $9.00 | $7.85 | 01/31/2017 | 14.65% | 83.55% |
| LSCC | 11/03/2016 | Canyon Bridge Capital Partners, Inc. (N/A) | $8.30 | $7.25 | 03/31/2017 | 14.48% | 42.98% |
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 WhiteWave Foods (WWAV), LinkedIn (LNKD), Apollo Education (APOL), Rite Aid (RAD) and Syngenta (SYT). 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
