Merger Arbitrage Mondays – May 15, 2017

  • May 15, 2017

Merger activity decreased last week with seven new deals announced and five 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 two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 201775
Total Number of Deals Not Completed in 20174
Total Number of Pending Deals
Cash Deals55
Stock Deals20
Stock & Cash Deals13
Special Conditions9
Total Number of Pending Deals97
Total Deal Size$762.09 billion

New Deals:

  1. The acquisition of Care Capital Properties (CCP) by Sabra Health Care REIT (SBRA) for $4.07 billion in an all stock deal. Under the terms of the agreement, CCP shareholders will receive 1.123 shares of Sabra common stock for each share of CCP common stock they own.
  2. The acquisition of Kate Spade & Company (KATE) by Coach (COH) for $2.4 billion or $18.50 per share in cash.
  3. The acquisition of VTTI ENERGY PARTNERS (VTTI) by VTTI B.V. for $1.59 billion or $19.50 per share in cash.
  4. The acquisition of Tribune Media Company (TRCO) by Sinclair Broadcast Group (SBGI) for $6.6 billion in a cash plus stock deal. Under the terms of the agreement, Tribune stockholders will receive $35.00 in cash and 0.23 shares of Sinclair Class A common stock for each share of Tribune Class A common stock and Class B common stock they own.
  5. The acquisition of West Corporation (WSTC) by affiliates of certain funds managed by affiliates of Apollo Global Management for $5.1 billion or $23.50 per share in cash.
  6. The acquisition of Straight Path Communications (STRP) by Verizon Communications (VZ) for $3.1 billion or $184.00 per share in cash.
  7. The acquisition of Merus Labs International (MSLI) by Norgine B.V. for $342 million or $1.65 per share in cash. Update: The $1.65 price is in Canadian dollars and based on a conversion rate of 0.73 Canadian Dollar to US Dollar, the closing price is $1.20.

Deal Updates:

  1. On May 8, 2017, Walgreens Boots Alliance (WBA) and Rite Aid Corporation (RAD) announced that they have certified substantial compliance with the Request for Additional Information from the United States Federal Trade Commission regarding their merger agreement under which Walgreens Boots Alliance proposes to acquire all outstanding shares of Rite Aid.
  2. On May 11, 2017, Straight Path Communications (STRP) announced that they have signed a definitive merger agreement under which Verizon Communications (VZ) will acquire Straight Path for $184.00 per share, reflecting an enterprise value of approximately $3.1 billion in an all-stock transaction that is intended to qualify as a tax-free reorganization. Concurrently therewith, Verizon will pay on behalf of Straight Path a termination fee of $38 million to AT&T. The transaction has been approved by the boards of directors of both Straight Path and Verizon.
  3. On May 11, 2017, Salem Five Bancorp and Georgetown Bancorp (GTWN) announced that they expect to close their merger transaction on May 23, 2017.
  4. On May 12, 2017, Cigna Corporation (CI) announced that the merger agreement with Anthem (ANTM) has been terminated. Cigna seeks prompt payment of the $1.85 billion reverse termination fee and will pursue claims for additional damages of over $13 billion against Anthem for the harm that it caused Cigna and its shareholders. In light of Cigna’s refusal to support the merger, however, Anthem has delivered to Cigna a notice terminating the Merger Agreement. Cigna has failed to perform and comply in all material respects with its contractual obligations. As a result, Cigna is not entitled to a termination fee.
  5. On May 12, 2017, Broadcom (AVGO) secured EU antitrust approval for its $5.5 billion bid for Brocade (BRCD) after pledging to cooperate with competitors and to protect their confidential data.
  6. On May 12, 2017, PrivateBancorp (PVTB) announced that its stockholders approved the proposals necessary to complete the acquisition of PrivateBancorp by CIBC (CM).

Closed Deals:

  1. The acquisition of Headwaters Incorporated (HW) by Boral Limited on May 8, 2017. It took 169 days for this deal to be completed.
  2. The acquisition of Empire Resources (ERS) by a unit of Ta Chen Stainless Pipe on May 8, 2017. It took 38 days for this deal to be completed.
  3. The acquisition of Silver Bay Realty Trust (SBY) by Tricon Capital Group on May 9, 2017. It took 71 days for this deal to be completed.
  4. The acquisition of Merchants Bancshares (MBVT) by Community Bank System (CBU) on May 12, 2017. It took 200 days for this deal to be completed.
  5. The acquisition of Exar Corporation (EXAR) by MaxLinear (MXL) on May 12, 2017. It took 44 days for this deal to be completed.

Top 10 deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnualized
Profit
RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)$6.50$3.9507/31/201764.56%306.02%
GNW10/23/2016China Oceanwide Holdings Group Co., Ltd. (N/A)$5.43$3.6806/30/201747.55%377.33%
MSLI05/11/2017Norgine B.V. (N/A)$1.65$1.1809/30/201739.83%105.35%
LSCC11/03/2016Canyon Bridge Capital Partners, Inc. (N/A)$8.30$6.9006/30/201720.29%161.00%
WR05/31/2016Great Plains Energy Incorporated (GXP)$60.00$51.8606/30/201715.70%124.55%
ADGE11/02/2016Tecogen Inc. (TGEN)$0.35$0.31506/30/201710.89%86.39%
CAB10/03/2016Bass Pro Shops (N/A)$61.50$55.5109/30/201710.79%28.54%
MON09/14/2016Bayer AG (BAYRY)$128.00$116.2212/31/201710.14%16.09%
ALR02/01/2016Abbott Laboratories (ABT)$51.00$46.7009/30/20179.21%24.35%
SGBK03/27/2017Home Bancshares, Inc. (HOMB)$49.00$44.9612/31/20178.99%14.26%

List of all pending deals:

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

SymbolAnnounced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
VolumeClosing
Date
ProfitAnnu.
Profit
+RAD10/27/2015Walgreens Boots Alliance, Inc. (WBA)All Cash$17.2 billion$6.50$3.959,004,52107/31/201764.56%306.02%
+GNW10/23/2016China Oceanwide Holdings Group Co., Ltd. (N/A)All Cash$2.7 billion$5.43$3.681,790,34606/30/201747.55%377.33%
+MSLI05/11/2017Norgine B.V. (N/A)All Cash$342 million$1.65$1.18288,98009/30/201739.83%105.35%
+LSCC11/03/2016Canyon Bridge Capital Partners, Inc. (N/A)All Cash$1.3 billion$8.30$6.90680,18806/30/201720.29%161.00%
+WR05/31/2016Great Plains Energy Incorporated (GXP)Special Conditions$12.2 billion$60.00$51.86431,74606/30/201715.70%124.55%
+ADGE11/02/2016Tecogen Inc. (TGEN)All Stock$20 million$0.35$0.31514,74106/30/201710.89%86.39%
+CAB10/03/2016Bass Pro Shops (N/A)All Cash$5 billion$61.50$55.51365,80209/30/201710.79%28.54%
+MON09/14/2016Bayer AG (BAYRY)All Cash$66 billion$128.00$116.221,207,76412/31/201710.14%16.09%
+ALR02/01/2016Abbott Laboratories (ABT)All Cash$5.3 billion$51.00$46.7010,185,58509/30/20179.21%24.35%
+SGBK03/27/2017Home Bancshares, Inc. (HOMB)Special Conditions$778.4 million$49.00$44.96286,00612/31/20178.99%14.26%
+TWX10/22/2016AT&T, Inc. (T)Special Conditions$108.7 billion$107.50$98.711,860,09512/31/20178.90%14.13%
+FBRC02/21/2017B. Riley Financial, Inc. (RILY)Cash Plus Stock$160.1 million$18.20$16.9055,90006/30/20177.67%60.85%
+GLBL03/07/2017Brookfield Asset Management Inc. (BAM)All Cash$1.3 billion$5.10$4.75328,28312/31/20177.37%11.69%
+AMFW03/13/2017John Wood Group Plc (WG.L)All Stock$4.3 billion$7.33$6.8430,44712/31/20177.22%11.46%
+WGL01/25/2017AltaGas Ltd. (N/A)All Cash$6.4 billion$88.25$82.62138,15006/30/20186.81%6.05%
+XCRA04/10/2017an affiliate of Sino IC Capital and Unic Capital Management (N/A)All Cash$439.97 million$10.25$9.70610,57912/31/20175.67%9.00%
+LVLT10/31/2016CenturyLink, Inc. (CTL)Cash Plus Stock$34 billion$61.69$59.093,272,95509/30/20174.39%11.62%
+TRCO05/08/2017Sinclair Broadcast Group, Inc. (SBGI)Cash Plus Stock$6.6 billion$43.03$41.368,854,46012/31/20174.03%6.40%
+DGI02/24/2017MacDonald, Dettwiler and Associates Ltd. (MDA.TO)Cash Plus Stock$3.6 billion$32.50$31.30339,41812/31/20173.82%6.06%
+EGAS10/11/2016First Reserve Energy Infrastructure (N/A)All Cash$196 million$13.10$12.656,79412/31/20173.56%5.65%
+ANCB04/11/2017Washington Federal, Inc. (WAFD)Special Conditions$63.9 million$25.75$24.9014,61409/30/20173.41%9.03%
+MBLY03/13/2017Intel Corporation (INTC)All Cash$14.7 billion$63.54$61.661,459,84912/31/20173.05%4.84%
+FCH04/24/2017RLJ Lodging Trust (RLJ)All Stock$2.58 billion$7.10$6.902,562,12312/31/20172.93%4.66%
+NXPI10/27/2016QUALCOMM Incorporated (QCOM)All Cash$38 billion$110.00$106.874,860,56412/31/20172.93%4.65%
+BCR04/23/2017Becton, Dickinson and Company (BDX)Cash Plus Stock$24 billion$316.66$307.71661,06711/30/20172.91%5.34%
+CACQ12/22/2014Caesars Entertainment Corporation (CZR)All StockN/A$18.20$17.70140,33006/30/20172.82%22.41%
+MGI01/26/2017Ant Financial Services Group (N/A)All Cash$1.2 billion$18.00$17.51261,19912/31/20172.80%4.44%
+AWH12/18/2016Fairfax Financial Holdings Limited (FFH.TO)Special Conditions$4.9 billion$54.00$52.62374,14606/30/20172.62%20.81%
+AKRX04/24/2017Fresenius Kabi (N/A)All Cash$4.75 billion$34.00$33.152,083,34603/31/20182.56%2.92%
+STRP05/11/2017Verizon Communications Inc. (VZ)All Cash$3.1 billion$184.00$179.68272,15903/15/20182.40%2.89%
+RBPAA01/30/2017Bryn Mawr Bank Corporation (BMTC)All Stock$127.7 million$4.35$4.2550,15009/30/20172.26%5.97%
+OKSB12/14/2016Simmons First National Corporation (SFNC)Cash Plus Stock$564.4 million$25.60$25.0565,49009/30/20172.20%5.82%
+CUNB04/06/2017PacWest Bancorp (PACW)Cash Plus Stock$705 million$38.03$37.30112,11012/31/20171.96%3.11%
+SAJA04/26/2017AMPLEXOR International SA (N/A)All Cash28.5 million$5.83$5.7235,86907/31/20171.92%9.12%
+DGAS02/21/2017Peoples Natural Gas (N/A)All Cash$227 million$30.50$29.947,97412/31/20171.87%2.97%
+CBF05/04/2017First Horizon National Corp. (FHN)Cash Plus Stock$2.2 billion$38.91$38.20862,17412/31/20171.86%2.95%
+NVET04/13/2017Zoetis Inc. (ZTS)All Cash$26.93 million$6.72$6.617,52912/31/20171.66%2.64%
+WSTC05/09/2017affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (N/A)All Cash$5.1 billion$23.50$23.123,115,58012/31/20171.64%2.61%
+ZPIN04/06/2017SEEK International Investments Pty Ltd. (N/A)All Cash$678.59 million$18.20$17.9231,43412/31/20171.28%2.04%
+ASBB05/01/2017First Bancorp (FBNC)All Stock$175 million$41.62$41.1020,86512/31/20171.26%1.99%
+WOOF01/07/2017Mars, Incorporated (N/A)All Cash$9.1 billion$93.00$91.85264,62109/30/20171.25%3.31%
+FCFP02/06/2017First Busey Corporation (BUSE)Cash Plus Stock$235.8 million$13.01$12.8514,16706/30/20171.23%9.77%
+SYT02/03/2016ChemChina (N/A)All Cash$43 billion$93.95$92.81888,80606/30/20171.23%9.75%
+PCBK01/09/2017Columbia Banking System, Inc. (COLB)All Stock$644.1 million$25.10$24.80143,42406/30/20171.19%9.48%
+MJN02/10/2017Reckitt Benckiser Group (N/A)All Cash$17.9 billion$90.00$88.95991,49909/30/20171.18%3.12%
+SWFT04/10/2017Knight Transportation, Inc. (KNX)All Stock$3.24 bilion$23.11$22.851,244,93109/30/20171.15%3.03%
+LMOS02/20/2017EQT Infrastructure investment strategy (N/A)All Cash$950 million$18.00$17.8092,40109/30/20171.12%2.97%
+FRP12/05/2016Consolidated Communications Holdings, Inc. (CNSL)All Stock$1.5 billion$15.07$14.90243,86106/30/20171.12%8.90%
+FOR04/13/2017affiliates of Starwood Capital Group (N/A)All Cash$442.77 million$14.25$14.10420,90809/30/20171.06%2.81%
+NORD04/25/2017Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A)All Cash$4.3 billion$32.50$32.18917,20708/31/20170.99%3.36%
+PSTB04/27/2017South State Corporation (SSB)All Stock$690.8 million$11.87$11.75380,86012/31/20170.98%1.55%
+CCP05/07/2017Sabra Health Care REIT, Inc. (SBRA)All Stock$4.07 billion$27.31$27.051,249,14009/30/20170.97%2.56%
+SNOW04/10/2017An entity controlled by affiliates of the Aspen Skiing Compan and KSL Capital Partners (N/A)All Cash$1.5 billion$23.75$23.53709,22409/30/20170.93%2.47%
+ELOS04/03/2017Funds advised by Apax Partners (N/A)All Cash$319.66 million$11.00$10.902,765,34306/30/20170.92%7.28%
+NSR12/14/2016private investment group led by Golden Gate Capital (N/A)All Cash$2.9 billion$33.50$33.20597,55709/30/20170.90%2.39%
+AF03/07/2017Sterling Bancorp (STL)All Stock$2.2 billion$19.73$19.56802,38712/31/20170.88%1.39%
+AIQ04/11/2017Tahoe Investment Group Co., Ltd. (N/A)All Cash$682 million$13.25$13.156,70209/30/20170.76%2.01%
+PBNC04/27/2017TowneBank (TOWN)All Stock$323.7 million$52.61$52.232,21712/31/20170.73%1.16%
+BRCD11/02/2016Broadcom Limited (AVGO)All Cash$5.5 billion$12.75$12.664,384,14610/31/20170.71%1.54%
+KCG04/20/2017Virtu Financial, Inc. (VIRT)All Cash$1.56 billion$20.00$19.86328,09809/30/20170.70%1.86%
+PNRA04/05/2017JAB (N/A)All Cash$7.5 billion$315.00$312.85317,48509/30/20170.69%1.82%
+VAL03/20/2016The Sherwin-Williams Company (SHW)All Cash$11.3 billion$113.00$112.30449,66106/21/20170.62%6.15%
+FIG02/14/2017SoftBank Group Corp. (SFTBY)All Cash$3.3 billion$8.08$8.031,259,59712/31/20170.62%0.99%
+OKS02/01/2017ONEOK, Inc. (OKE)All Stock$17.2 billion$50.24$49.941,401,56206/30/20170.59%4.69%
+GNVC01/24/2017Intrexon Corporation (XON)All Stock$6.3 million$7.17$7.1352,69106/30/20170.56%4.40%
+KATE05/08/2017Coach, Inc. (COH)All Cash$2.4 billion$18.50$18.415,724,09409/30/20170.49%1.29%
+JIVE05/01/2017ESW Capital, LLC (N/A)All Cash$462 million$5.25$5.225291,46706/30/20170.48%3.80%
+PVTB06/29/2016Canadian Imperial Bank of Commerce (CM)Cash Plus Stock$4.9 billion$59.82$59.562,931,57706/30/20170.43%3.45%
+SYUT11/17/2016Beams Power Investment Limited (N/A)All CashN/A$6.05$6.025124,21105/31/20170.41%9.47%
+CST08/22/2016Alimentation Couche-Tard Inc. (N/A)All Cash$4.4 billion$48.53$48.33218,25406/30/20170.41%3.28%
+UCP04/11/2017Century Communities, Inc. (CCS)Cash Plus Stock$336 million$11.24$11.2035,81909/30/20170.38%1.01%
+XRA03/28/2017Goldcorp Inc. (GG)All Stock$184.45$1.71$1.70161,12306/30/20170.38%2.99%
+SGM01/26/2017Home Point Financial Corporation (N/A)All Cash$211 million$8.00$7.9725,90306/30/20170.38%2.99%
+LMIA02/17/2017Sonaca Group (N/A)All Cash$381.47 million$14.00$13.9535,69106/30/20170.36%2.84%
+WNR11/17/2016Tesoro Corporation (TSO)All Stock$6.4 billion$35.17$35.05718,08906/30/20170.35%2.81%
+EVBS12/13/2016Southern National Bancorp of Virginia, Inc. (SONA)All Stock$178.3 million$10.63$10.603,99406/30/20170.29%2.33%
+TRR03/31/2017New Mountain Capital (N/A)All Cash$438 million$17.55$17.50196,02206/30/20170.29%2.27%
+VTTI05/08/2017VTTI B.V. (N/A)All Cash$1.59 billion$19.50$19.45759,46809/30/20170.26%0.68%
+SALE04/10/2017Harland Clarke Holdings Corp. (N/A)All Cash$216 million$11.60$11.575548,82106/30/20170.22%1.71%
+SPAN05/01/2017Savaria Corporation (N/A)All Cash$80.2 million$29.00$28.946,72106/30/20170.21%1.65%
+EVER08/08/2016TIAA (N/A)All Cash$2.5 billion$19.50$19.46358,33306/30/20170.21%1.63%
+GTWN10/06/2016Salem Five Bancorp (N/A)All Cash$49.2 million$26.00$25.95705/31/20170.19%4.40%
+INVN12/21/2016TDK Corporation (TTDKY)All Cash$1.3 billion$13.00$12.981,068,46309/30/20170.15%0.41%
+VWR05/05/2017Avantor (N/A)All Cash$6.4 billion$33.25$33.20961,69609/30/20170.15%0.40%
+MPSX01/24/2017WestRock Company (WRK)All Cash$2.28 billion$18.00$17.9980,24606/30/20170.06%0.44%
+CFCB01/26/2017Midland States Bancorp, Inc. (MSBI)Special Conditions$175.1 million$26.75$26.758,29006/30/20170.00%0.00%
+MOCO04/17/2017AMETEK, Inc. (AME)All Cash$182 million$30.00$30.0033,00209/30/20170.00%0.00%
+UTEK02/02/2017Veeco Instruments Inc. (VECO)Cash Plus Stock$550 million$30.56$30.57458,49806/30/2017-0.02%-0.15%
+BNCN01/23/2017Pinnacle Financial Partners, Inc. (PNFP)All Stock$1.9 billion$32.14$32.15183,57509/30/2017-0.02%-0.06%
+NSAT03/27/2017Hytera Project Corp. (N/A)All Cash$62 million$10.25$10.309,58206/30/2017-0.49%-3.85%
+APFH04/25/2017Tyson Foods, Inc. (TSN)All Cash$4.2 billion$40.25$40.491,208,07407/01/2017-0.59%-4.60%
+ALJ01/03/2017Delek US Holdings, Inc. (DK)All Stock$1.27 billion$12.45$12.53295,55906/30/2017-0.65%-5.14%
+OB05/02/2017Intact Financial Corporation (N/A)All Cash$1.7 billion$18.10$18.26376,62512/31/2017-0.88%-1.39%
+GNCMA04/04/2017Liberty Ventures (LVNTA)Special Conditions$2.68 billion$32.50$36.07138,07406/30/2017-9.90%-78.53%
+INNL04/04/2017Gurnet Point L.P. (N/A)Special Conditions$209 million$1.75$2.13122,53606/30/2017-17.84%-141.56%
+ANGI05/02/2017IAC/InterActiveCorp (IAC)Special Conditions$331.67 million$8.50$11.63700,63712/31/2017-26.91%-42.71%
+RAI01/17/2017British American Tobacco p.l.c. (BTI)Cash Plus Stock$49.4 billion$47.83$65.543,726,27509/30/2017-27.03%-71.49%

Disclaimer: I hold positions in Cabela’s (CAB), Rite Aid (RAD), Fortress Investment Group (FIG) and NXP Semiconductors (NXPI). 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.

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