Merger Arbitrage Mondays – April 3, 2017

Merger activity increased last week with six new deals announced and four deals closing. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There were no new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 49
Total Number of Deals Not Completed in 2017 2
Total Number of Pending Deals
Cash Deals 49
Stock Deals 19
Stock & Cash Deals 11
Special Conditions 6
Total Number of Pending Deals 85
Total Deal Size $666.81 billion

New Deals:

  1. The acquisition of Norsat International (NSAT) by Hytera Project for $62 million or $10.25 per share in cash.
  2. The acquisition of Stonegate Bank (SGBK) by Home Bancshares (HOMB) for $778.4 million or $49 per share in cash.
  3. The acquisition of Exeter Resource Corporation (XRA) by Goldcorp (GG) for $184.45 million in an all stock deal. Under the terms of the agreement, shareholders of Exeter Resource Corporation will receive 0.12 of a Goldcorp share for each Exeter share.
  4. The acquisition of Exar Corporation (EXAR) by MaxLinear (MXL) for $472 million or $13.00 per share in cash.
  5. The acquisition of Empire Resources (ERS) by a unit of Ta Chen Stainless Pipe for $160.57 million or $7.00 per share in cash.
  6. The acquisition of TRC Companies (TRR) by New Mountain Capital for $438 million or $17.55 per share in cash.

Deal Updates:

  1. On March 28, 2017, MoneyGram (MGI) and Ant Financial Services Group announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired with respect to the definitive agreement under which MoneyGram will merge with Ant Financial.
  2. On March 28, 2017, FairPoint Communications (FRP) shareholders voted to adopt the merger agreement between FairPoint and Consolidated Communications Holdings (CNSL) during a special meeting.
  3. On March 29, 2017, Heritage Oaks Bancorp  (HEOP) announced, that at the Company’s special meeting of shareholders, the shareholders of the Company approved the Company’s merger with and into Pacific Premier Bancorp (PPBI), with PPBI surviving the merger. Subject to customary closing conditions, the merger of the Company with and into PPBI currently is expected to be consummated effective as of April 1, 2017.
  4. On March 30, 2017, PrivateBancorp (PVTB) and Canadian Imperial Bank of Commerce (CM) announced that they have entered into an amended merger agreement. Under the Amended Agreement, PrivateBancorp stockholders will receive, upon completion of the proposed merger with CIBC, US$24.20 in cash and 0.4176 of a CIBC common share for each share of common stock of PrivateBancorp held. The Amended Agreement values PrivateBancorp at approximately US$4.9 billion. The companies currently expect to close the transaction in the second calendar quarter of 2017. PrivateBancorp has set March 31, 2017 as the new record date for its special meeting of stockholders to consider and act upon the revised merger agreement.
  5. On March 30, 2017, Walgreens (WBA) made a risky move to win regulatory approval for its $9.7 billion merger with Rite Aid (RAD). Walgreen has set a deadline of roughly three months for the FTC to either block the merger or let it go forward.
  6. On March 31, 2017, Danone agreed to sell the Stonyfield organic yogurt brand to win approval from U.S. antitrust authorities for its $10 billion acquisition of soy-milk maker WhiteWave Foods (WWAV).

Closed Deals:

  1. The acquisition of Popeyes Louisiana Kitchen (PLKI) by Restaurant Brands International (QSR) on March 27, 2017. It took 34 days for this deal to be completed.
  2. The acquisition of Endurance Specialty Holdings (ENH) by SOMPO Holdings on March 28, 2017. It took 174 days for this deal to be completed.
  3. The acquisition of Mentor Graphics (MENT) by Siemens AG on March 30, 2017. It took 136 days for this deal to be completed.
  4. The acquisition of Heritage Oaks Bancorp (HEOP) by Pacific Premier Bancorp (PPBI) on March 31, 2017. It took 108 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Profit Annualized
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $6.50 $4.25 07/31/2017 52.94% 162.38%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $39.73 03/31/2017 40.95% -4982.42%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.12 06/30/2017 31.80% 131.88%
CAB 10/03/2016 Bass Pro Shops (N/A) $65.50 $53.11 06/30/2017 23.33% 96.76%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.92 03/31/2017 19.94% -2426.30%
ADGE 11/02/2016 Tecogen Inc. (TGEN) $0.35 $0.3051 06/30/2017 14.28% 59.25%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $113.20 12/31/2017 13.07% 17.54%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $54.27 06/30/2017 10.56% 43.79%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $97.71 12/31/2017 10.02% 13.45%
MBVT 10/24/2016 Community Bank System Inc. (CBU) $52.95 $48.70 06/30/2017 8.72% 36.16%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.

Disclaimer: I hold positions in WhiteWave Foods (WWAV), Rite Aid (RAD), Syngenta (SYT) and Fortress Investment Group (FIG). 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: or follow me on Twitter@asifsuria


  1. GeorgeCiardi
    April 3, 2017 at 4:43 am

    I also saw a reverse merger announced this week with Jaguar Animal Health, Inc. (JAGX). It is small but you might want to consider adding it to the list.

    • Asif Suria
      April 23, 2017 at 12:52 pm

      My apologies on not responding to this sooner. We did look into this reverse merger and decided not to add it to the MAT because the merger will lead to the creation of a new company and hence tracking a spread on the deal becomes difficult.

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