Merger Arbitrage Mondays – December 19, 2016

Merger Activity decreased last week with two new deals announced and two 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 222
Total Number of Deals Not Completed in 2016 19
Total Number of Pending Deals
Cash Deals 49
Stock Deals 17
Stock & Cash Deals 12
Special Conditions 7
Total Number of Pending Deals 85
Total Deal Size $1387.39 billion

New Deals:

  1. The acquisition of NeuStar (NSR) by a private investment group led by Golden Gate Capital for $2.9 billion or $33.50 per share in cash.
  2. The acquisition of Southwest Bancorp (OKSB) by Simmons First National Corporation (SFNC) for $564.4 million in a cash plus stock deal. Under the terms of the Agreement, each outstanding share of common stock and equivalents of SBI will be converted into the right to receive 0.3903 shares of the Company’s common stock and $5.11 in cash.

Deal Updates:

  1. On December 13, 2016, InterOil Corporation (IOC) provided an update on the transaction with Exxon Mobil Corporation (XOM). Following the previously announced decision by the Court of Appeal of Yukon to allow an appeal lodged by Phil Mulacek, InterOil’s Independent Transaction Committee, consisting of four independent and experienced directors of InterOil, are undertaking a detailed and thorough review process relating to the proposed transaction, with the support of independent legal counsel and BMO Capital Markets, an independent financial advisor. To accommodate the new review process, ExxonMobil and InterOil have agreed to extend the outside date of the current Arrangement Agreement to the close of business on Wednesday, December 21, 2016.
  2. On December 13, 2016, The U.S. Justice Department sought to knock down arguments by Aetna (AET)’s chief executive that Medicare Advantage competes with government insurance programs, making Aetna’s proposed merger with Humana (HUM) legal under antitrust law.
  3. On December 15, 2016, Eldorado Resorts (ERI) announced that it received approval from the West Virginia Lottery Commission for its pending acquisition of Isle of Capri Casinos (ISLE).
  4. On December 16, 2016, Trina Solar Limited (TSL) announced that the Company’s shareholders voted in favor of the proposal to authorize and approve the previously announced agreement and plan of merger dated August 1, 2016 by and among Fortune Solar Holdings Limited, Red Viburnum Company Limited and the Company.
  5. On December 16, 2016, Icahn Enterprises (IEP) announced that the expiration of its cash tender offer for $9.25 per Share , through its wholly owned subsidiary, IEH FM Holdings, for all of the outstanding shares of common stock of Federal-Mogul Holdings Corporation (FDML), has been extended to January 4, 2017. All other terms and conditions of the Offer, including the offer price of $9.25 per share remain unchanged. We have extended the closing date for this deal to January 15, 2017.
  6. December 16, 2016. We have extended the closing date for the Syngenta (SYT) ChemChina merger to April 15, 2017, based on the update from  November 17, 2016, “The European Commission pushed back its deadline for a decision on ChemChina’s plan to acquire Swiss pesticides and seeds group Syngenta (SYT) by 10 working days to March 29.”
  7. On Decemer 16, 2016, InterOil Corp (IOC) said it has increased the cap on an additional cash payment based on the output from a natural gas field in Papua New Guinea that was part of its sale agreement with ExxonMobil Corp (XOM). InterOil also said the termination fee has been increased to $100 million from $67 million, and extended the outside date of the transaction to March 31, 2017. We have extended the closing date for this deal to March 31, 2017.
  8. On December 17, 2016, American Capital (ACAS) announced that a majority of its shareholders have approved the merger agreement with Ares Capital Corporation (ARCC), at the company’s annual meeting.

Closed Deals:

  1. The acquisition of Virgin America (VA) by Alaska Air Group (ALK) on December 14, 2016. It took 254 days for this deal to be completed.
  2. The acquisition of BBX Capital (BBX) by BFC Financial (BFCF) on December 14, 2016. It took 140 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $39.00 12/31/2016 43.59% 1325.85%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.88 06/30/2017 39.95% 75.55%
CI 07/24/2015 Anthem, Inc. (ANTM) $178.34 $136.76 03/31/2017 30.40% 108.80%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $105.50 12/31/2017 21.33% 20.65%
TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) $11.60 $9.63 03/31/2017 20.43% 73.12%
SYT 02/03/2016 ChemChina (N/A) $96.01 $80.01 04/15/2017 20.00% 62.39%
ADGE 11/02/2016 Tecogen Inc. (TGEN) $0.36 $0.306 06/30/2017 18.16% 34.34%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $7.11 03/31/2017 16.74% 59.89%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $94.80 12/31/2017 13.40% 12.97%
NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) $110.00 $97.19 12/31/2017 13.18% 12.76%

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), 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

4 Comments

  1. info
    December 19, 2016 at 7:01 am

    I was reading about a few other new M&As this past week that you might be interested in adding. They were LIOX, EVBS, and HEOP.

    • Asif Suria
      December 19, 2016 at 12:30 pm

      Thank you for mentioning these. We did miss them and will add them to the database.

  2. Ajay Mehta
    December 19, 2016 at 1:44 pm

    Another one is KZ that is missing.

    • Asif Suria
      December 19, 2016 at 3:35 pm

      Thanks Ajay. We will add that one as well.

Leave A Comment

You must be logged in to post a comment.