Merger Arbitrage Mondays – December 5, 2016

Merger Activity decreased last week with two new deals announced and nine 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 214
Total Number of Deals Not Completed in 2016 17
Total Number of Pending Deals
Cash Deals 54
Stock Deals 16
Stock & Cash Deals 12
Special Conditions 7
Total Number of Pending Deals 89
Total Deal Size $1380.15 billion

New Deals:

  1. The acquisition of CLARCOR (CLC) by Parker-Hannifin Corporation (PH) for $4.3 billion or $83.00 per share in cash.
  2. The acquisition of Vascular Solutions (VASC) by Teleflex Incorporated (TFX) for $1 billion or $56.00 per share in cash.

Deal Updates:

  1. November 29, 2016: On account of the 5 for 1 reverse stock split for (WGBS) that went into effect at 4:01 PM on November 28, 2016, we have adjusted our rough estimate for this deal to $4.75 from $0.95.
  2. On November 29, 2016, Trishield Capital Management announced that it had sent a letter to the Board of Directors of BBX Capital Corporation (BBX) explaining why the $20 per share cash consideration proposed to be paid in the pending merger between BBX Capital Corporation and BFC Financial Corporation (BFCF), its controlling shareholder, significantly undervalues BBX.
  3. December 1, 2016: Anthem (ANTM) could face a penalty of about $3 billion from the national Blue Cross Blue Shield Association if it fails to derive the bulk of its nationwide revenue from Blue-branded products after acquiring Cigna (CI), according to testimony from an Anthem executive during a U.S. antitrust trial in Washington.
  4. On December 1, 2016, AT&T (T) executives reportedly met with members of Donald Trump’s transition team, which told the telecom company its proposed merger would be scrutinized without prejudice. Executives are apparently confident the deal can pass regulatory review.
  5. On December 2, 2016, Reuters noted that ChemChina has put together a fund aimed at raising around $5 billion to help finance its Syngenta (SYT) purchase.
  6. On December 3, 2016, German semiconductor equipment maker Aixtron (AIXG) said that it will explore with its Chinese suitor what can be salvaged of the planned takeover after a U.S. presidential order ruled the deal posed a national security risk.

Closed Deals:

  1. The acquisition of Lexmark International (LXK) by a consortium of investors led by Apex Technology and PAG Asia Capital on November 29, 2016. It took 224 days for this deal to be completed.
  2. The acquisition of Cvent (CVT) by affiliates of Vista Equity Partners on November 29, 2016. It took 225 days for this deal to be completed.
  3. The acquisition of Aegerion Pharmaceuticals (AEGR) by QLT (QLTI) on November 29, 2016. It took 167 days for this deal to be completed.
  4. The acquisition of Ocean Shore Holding (OSHC) by OceanFirst Financial (OCFC) on December 1, 2016. It took 141 days for this deal to be completed.
  5. The acquisition of Morgans Hotel Group (MHGC) by SBE on December 1, 2016. It took 206 days for this deal to be completed.
  6. The acquisition of DTS (DTSI) by Tessera Technologies (TSRA) on December 1, 2016. It took 72 days for this deal to be completed.
  7. The acquisition of Post Properties (PPS) by Mid-America Apartment Communities (MAA) on December 1, 2016. It took 108 days for this deal to be completed.
  8. The acquisition of Interactive Intelligence Group (ININ) by Genesys on December 2, 2016. It took 93 days for this deal to be completed.
  9. The acquisition of Envision Healthcare Holdings (EVHC) by AmSurg (AMSG) on December 2, 2016. It took 170 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
AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) $6.66 $3.97 12/31/2016 67.76% 951.22%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $39.91 12/31/2016 40.32% 565.97%
CI 07/24/2015 Anthem, Inc. (ANTM) $178.16 $133.44 03/31/2017 33.51% 105.44%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.12 06/30/2017 31.80% 56.07%
TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) $11.60 $9.41 03/31/2017 23.25% 73.15%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $103.91 12/31/2017 23.18% 21.64%
SYT 02/03/2016 ChemChina (N/A) $96.01 $78.38 01/05/2017 22.49% 264.84%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.94 03/31/2017 19.60% 61.66%
SYUT 11/17/2016 Beams Power Investment Limited (N/A) $6.05 $5.20 03/31/2017 16.35% 51.43%
ADGE 11/02/2016 Tecogen Inc. (TGEN) $0.37 $0.32 06/30/2017 15.00% 26.45%

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

2 Comments

  1. info
    December 5, 2016 at 11:33 am

    There was a lot of deals closing last week. One other that I owned that I think also closed last week was SEMI. That makes 10 closed and 2 new.

    • Asif Suria
      December 5, 2016 at 2:22 pm

      You are right. SEMI did close last week. We will update our database to close the deal.

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