Merger Arbitrage Mondays – November 7, 2016
Merger Activity increased last week with nine new deals announced and six 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:
New Deals:
- GE (GE) and Baker Hughes (BHI) announced that the companies have entered into an agreement to combine GE’s oil and gas business and Baker Hughes. Under the terms of the agreement, at the closing of the transaction Baker Hughes shareholders will receive a special one-time cash dividend of $17.50 per share and 37.5% of the new company. Since this deal will result in the creation of a new company, we are not entering it in our database.
- The acquisition of Level 3 Communications (LVLT) by CenturyLink (CTL) for $34 billion in a cash plus stock deal. Under terms of the agreement, Level 3 shareholders will receive $26.50 per share in cash and a fixed exchange ratio of 1.4286 shares of CenturyLink stock for each Level 3 share they own.
- The acquisition of Team Health Holdings (TMH) by funds affiliated with Blackstone for $6.1 billion or $43.50 per share in cash.
Deal Updates:
- On November 1, 2016, ChemChina said it has extended its $43 billion cash offer for Swiss agrichemicals group Syngenta (SYT) to January 5 while it works to gain regulatory approval for the deal.
- On November 2, 2016, China repeated a warning that Germany’s decision to withdraw approval for a Chinese acquisition of chip maker Aixtron SE (AIXG) could hurt bilateral economic ties, the latest volley in a rare, public diplomatic spat between the two close economic partners.
- On November 4, 2016, the proposed merger of Tesla Motors (TSLA) and SolarCity (SCTY) received an endorsement from an influential shareholder proxy service, an important show of confidence for entrepreneur Elon Musk’s controversial plan ahead of a Nov. 17 vote.
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