Merger Arbitrage Mondays – June 12, 2017

Merger activity remained steady last week with four 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 five new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 90
Total Number of Deals Not Completed in 2017 4
Total Number of Pending Deals
Cash Deals 55
Stock Deals 24
Stock & Cash Deals 11
Special Conditions 8
Total Number of Pending Deals 98
Total Deal Size $792.78 billion

New Deals:

  1. The acquisition of Covisint Corporation (COVS) by Open Text Corporation (OTEX) for $103 million or $2.45 per share in cash.
  2. The acquisition of Albany Molecular Research (AMRI) by affiliates of The Carlyle Group and GTCR for $1.49 billion or $21.75 per share in cash.
  3. The acquisition of SciClone Pharmaceuticals (SCLN) by a consortium consisting of entities affiliated with GL Capital Management GP Limited, Bank of China Group Investment Limited, CDH Investments, Ascendent Capital Partners and Boying for $605 million or $11.18 per share in cash.
  4. The acquisition of DuPont Fabros Technology (DFT) by Digital Realty Trust (DLR) for $7.6 billion in an all stock deal. Under the terms of the agreement, DuPont Fabros shareholders will receive a fixed exchange ratio of 0.545 Digital Realty share per DuPont Fabros share.

Deal Updates:

  1. On June 5, 2017, D.R. Horton (DHI) announced that the Company has submitted a proposal to the Board of Directors of Forestar Group (FOR) to acquire 75% of the currently outstanding shares of Forestar for $16.25 per share in cash. Forestar Group announced on June 8, that its board of directors, after consultation with its outside legal and financial advisors, has determined that the unsolicited, nonbinding proposal received from D.R. Horton could reasonably be expected to lead to a “Superior Proposal,” as defined in Forestar’s merger agreement with Starwood Capital Group.
  2. On June 5, 2017, Norsat International (NSAT) announced that it has filed and is in the process of mailing supplemental information to securityholders in respect of the previously adjourned annual general and special meeting of security holders. The Meeting will resume on Thursday, June 22, 2017.
  3. On June 8, 2017, Canadian Imperial Bank of Commerce (CM) and PrivateBancorp (PVTB) announced that they have received all regulatory approvals required to complete CIBC’s acquisition of Chicago-based PrivateBancorp, Inc. pursuant to their amended merger agreement announced on May 4, 2017. CIBC and PrivateBancorp anticipate that the acquisition will close on June 23, 2017.
  4. On June 8, 2017, LMI Aerospace (LMIA) shareholders, at a special meeting, approved the merger agreement for the Sonaca Group’s acquisition of LMI.
  5. On June 8, 2017, The Justice Department gave its approval to a complicated transaction for Liberty Interactive (QVCA) to buy Alaska’s biggest telecom, General Communication (GNCMA).
  6. On June 9, 2017, TRC Companies (TRR) announced that TRC stockholders adopted the definitive merger agreement with affiliates of New Mountain Partners. With approval by TRC stockholders, TRC and NMC expect to complete the transaction later this month.
  7. On June 9, 2017, shares of drugstore chain Rite Aid (RAD) fell sharply on a report that indicated its proposed merger with Walgreens Boots Alliance (WBA) was having trouble winning U.S. antitrust approval.

Closed Deals:

  1. The acquisition of Multi Packaging Solutions International Limited (MPSX) by WestRock Company (WRK) on June 6, 2017. It took 133 days for this deal to be completed.
  2. The acquisition of ADVANCEPIERRE FOODS HOLDINGS (APFH) by Tyson Foods (TSN) on June 8, 2017. It took 44 days for this deal to be completed.
  3. The acquisition of Centrue Financial Corporation (CFCB) by Midland States Bancorp (MSBI) on June 9, 2017. It took 134 days for this deal to be completed.
  4. The acquisition of EverBank Financial (EVER) by TIAA on June 9, 2017. It took 305 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
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $6.50 $3.00 07/31/2017 116.67% 869.05%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.63 06/30/2017 49.59% 1005.51%
DEST 12/20/2016 Orchestra-Premaman S.A. (KAZI.PA) $6.74 $4.95 06/30/2017 36.09% 731.85%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.86 06/30/2017 20.99% 425.66%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $52.96 06/30/2017 13.29% 269.55%
CAB 10/03/2016 Bass Pro Shops (N/A) $61.50 $56.0200 09/30/2017 9.78% 32.46%
TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) $42.88 $39.11 12/31/2017 9.63% 17.41%
HUN 05/22/2017 CLARIANT N (CLN.VX) $25.66 $23.45 12/31/2017 9.43% 17.04%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $117.52 12/31/2017 8.92% 16.11%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $99.19 12/31/2017 8.38% 15.14%

List of all pending deals:

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

Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing
Date
Profit Annu.
Profit
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $6.50 $3.00 79,487,195 07/31/2017 116.67% 869.05%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $3.63 5,307,752 06/30/2017 49.59% 1005.51%
+ DEST 12/20/2016 Orchestra-Premaman S.A. (KAZI.PA) All Stock $100 million $6.74 $4.95 34,439 06/30/2017 36.09% 731.85%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $6.86 449,464 06/30/2017 20.99% 425.66%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $52.96 633,993 06/30/2017 13.29% 269.55%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $56.0200 345,149 09/30/2017 9.78% 32.46%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $42.88 $39.11 749,031 12/31/2017 9.63% 17.41%
+ HUN 05/22/2017 CLARIANT N (CLN.VX) All Stock $6.72 billion $25.66 $23.45 5,328,787 12/31/2017 9.43% 17.04%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $117.52 1,628,079 12/31/2017 8.92% 16.11%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $99.19 3,150,355 12/31/2017 8.38% 15.14%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $82.86 259,387 06/30/2018 6.50% 6.20%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $6.61 $6.29 65,244 12/31/2017 5.08% 9.18%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $46.91 81,303 12/31/2017 4.46% 8.05%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $17.27 745,097 12/31/2017 4.23% 7.64%
+ ASBB 05/01/2017 First Bancorp (FBNC) All Stock $175 million $44.51 $42.80 29,842 12/31/2017 4.00% 7.22%
+ EGAS 10/11/2016 First Reserve Energy Infrastructure (N/A) All Cash $196 million $13.10 $12.70 17,520 12/31/2017 3.15% 5.69%
+ SCLN 06/08/2017 a consortium consisting of entities affiliated with GL Capital Management GP Limited, Bank of China Group Investment Limited, CDH Investments, Ascendent Capital Partners and Boying (N/A) All Cash $605 million $11.18 $10.85 2,172,856 12/31/2017 3.04% 5.50%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $4.95 650,505 12/31/2017 3.03% 5.48%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.96 857,508 12/31/2017 2.91% 5.26%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $34.73 $33.75 209,093 12/31/2017 2.90% 5.25%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $33.75 $32.80 120,798 01/15/2018 2.89% 4.87%
+ AWH 12/18/2016 Fairfax Financial Holdings Limited (FFH.TO) Special Conditions $4.9 billion $54.00 $52.51 415,605 06/30/2017 2.84% 57.54%
+ FCH 04/24/2017 RLJ Lodging Trust (RLJ) All Stock $2.58 billion $7.76 $7.55 3,580,589 12/31/2017 2.80% 5.06%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $25.15 12,015 09/30/2017 2.39% 7.92%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $63.80 $62.36 4,078,535 09/30/2017 2.31% 7.67%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $33.24 1,299,513 03/31/2018 2.29% 2.86%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $54.68 $53.50 24,277 12/31/2017 2.21% 3.99%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $49.96 1,168,742 09/30/2017 2.08% 6.91%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $38.06 $37.30 194,578 12/31/2017 2.03% 3.67%
+ MBLY 03/13/2017 Intel Corporation (INTC) All Cash $14.7 billion $63.54 $62.30 2,282,887 12/31/2017 1.99% 3.60%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $32.22 $31.60 316,579 12/31/2017 1.98% 3.57%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $320.41 $314.25 789,034 11/30/2017 1.96% 4.18%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.36 $4.28 112,471 09/30/2017 1.90% 6.31%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $20.91 $20.54 975,004 12/31/2017 1.81% 3.28%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) All Cash $3.1 billion $184.00 $180.99 137,636 03/15/2018 1.66% 2.20%
+ DFT 06/09/2017 Digital Realty Trust, Inc. (DLR) All Stock $7.6 billion $61.76 $60.80 12,707,562 12/31/2017 1.58% 2.85%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $39.90 $39.30 563,378 12/31/2017 1.52% 2.74%
+ CCP 05/07/2017 Sabra Health Care REIT, Inc. (SBRA) All Stock $4.07 billion $25.67 $25.31 1,545,961 09/30/2017 1.43% 4.74%
+ NSR 12/14/2016 private investment group led by Golden Gate Capital (N/A) All Cash $2.9 billion $33.50 $33.05 798,890 09/30/2017 1.36% 4.52%
+ XRA 03/28/2017 Goldcorp Inc. (GG) All Stock $184.45 $1.61 $1.59 39,606 06/30/2017 1.36% 27.55%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $26.40 $26.05 247,328 09/30/2017 1.35% 4.47%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $108.58 4,236,131 12/31/2017 1.31% 2.36%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) All Cash $5.1 billion $23.50 $23.20 746,112 12/31/2017 1.29% 2.34%
+ COVS 06/05/2017 Open Text Corporation (OTEX) All Cash $103 million $2.45 $2.42 65,350 09/30/2017 1.24% 4.11%
+ SAJA 04/26/2017 AMPLEXOR International SA (N/A) All Cash 28.5 million $5.83 $5.76 11,753 07/31/2017 1.22% 9.05%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $20.23 $20.00 169,941 06/30/2017 1.16% 23.45%
+ SYT 02/03/2016 ChemChina (N/A) All Cash $43 billion $92.94 $91.90 161,934 06/30/2017 1.13% 22.95%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.99 485,293 12/31/2017 1.13% 2.04%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.62 2,811,806 10/31/2017 1.03% 2.67%
+ EVBS 12/13/2016 Southern National Bancorp of Virginia, Inc. (SONA) All Stock $178.3 million $11.41 $11.31 21,299 06/30/2017 0.86% 17.50%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $32.98 371,865 09/30/2017 0.82% 2.72%
+ NORD 04/25/2017 Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A) All Cash $4.3 billion $32.50 $32.24 333,158 08/31/2017 0.81% 3.68%
+ PTHN 05/15/2017 Thermo Fisher Scientific Inc. (TMO) All Cash $7.2 billion $35.00 $34.73 1,488,250 12/31/2017 0.78% 1.40%
+ SNOW 04/10/2017 An entity controlled by affiliates of the Aspen Skiing Compan and KSL Capital Partners (N/A) All Cash $1.5 billion $23.75 $23.57 389,386 09/30/2017 0.76% 2.53%
+ FRP 12/05/2016 Consolidated Communications Holdings, Inc. (CNSL) All Stock $1.5 billion $15.21 $15.10 459,365 06/30/2017 0.75% 15.20%
+ NVET 04/13/2017 Zoetis Inc. (ZTS) All Cash $26.93 million $6.72 $6.67 283 12/31/2017 0.75% 1.35%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $25.38 $25.20 790,452 09/30/2017 0.71% 2.37%
+ NSAT 03/27/2017 Hytera Project Corp. (N/A) All Cash $62 million $11.25 $11.175 102,054 09/30/2017 0.67% 2.23%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $26.36 $26.20 164,520 06/30/2017 0.62% 12.62%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $92.4600 602,653 09/30/2017 0.58% 1.94%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.91 171,293 09/30/2017 0.50% 1.67%
+ ELOS 04/03/2017 Funds advised by Apax Partners (N/A) All Cash $319.66 million $11.00 $10.95 104,718 06/30/2017 0.46% 9.26%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $48.33 290,930 06/30/2017 0.41% 8.39%
+ OKS 02/01/2017 ONEOK, Inc. (OKE) All Stock $17.2 billion $48.71 $48.51 681,815 06/30/2017 0.41% 8.29%
+ AIQ 04/11/2017 Tahoe Investment Group Co., Ltd. (N/A) All Cash $682 million $13.25 $13.20 3,079 09/30/2017 0.38% 1.26%
+ KCG 04/20/2017 Virtu Financial, Inc. (VIRT) All Cash $1.56 billion $20.00 $19.93 400,713 09/30/2017 0.35% 1.17%
+ FCFP 02/06/2017 First Busey Corporation (BUSE) Cash Plus Stock $235.8 million $13.44 $13.40 75,456 06/30/2017 0.33% 6.63%
+ TRR 03/31/2017 New Mountain Capital (N/A) All Cash $438 million $17.55 $17.50 74,641 06/30/2017 0.29% 5.79%
+ PNRA 04/05/2017 JAB (N/A) All Cash $7.5 billion $315.00 $314.22 357,112 09/30/2017 0.25% 0.82%
+ NUTR 05/22/2017 an affiliate of HGGC (N/A) All Cash $446 million $41.80 $41.70 78,273 12/31/2017 0.24% 0.43%
+ ALJ 01/03/2017 Delek US Holdings, Inc. (DK) All Stock $1.27 billion $13.27 $13.24 542,626 06/30/2017 0.19% 3.87%
+ AMRI 06/06/2017 affiliates of The Carlyle Group and GTCR LLC (N/A) All Cash $1.49 billion $21.75 $21.71 1,874,029 09/30/2017 0.18% 0.61%
+ MOCO 04/17/2017 AMETEK, Inc. (AME) All Cash $182 million $30.00 $29.950 25,983 09/30/2017 0.17% 0.55%
+ KATE 05/08/2017 Coach, Inc. (COH) All Cash $2.4 billion $18.50 $18.47 1,385,203 09/30/2017 0.16% 0.54%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $12.24 $12.23 361,790 12/31/2017 0.11% 0.19%
+ SPAN 05/01/2017 Savaria Corporation (N/A) All Cash $80.2 million $29.00 $28.97 2,788 06/30/2017 0.10% 2.10%
+ MJN 02/10/2017 Reckitt Benckiser Group (N/A) All Cash $17.9 billion $90.00 $89.97 1,259,532 07/31/2017 0.03% 0.25%
+ PVTB 06/29/2016 Canadian Imperial Bank of Commerce (CM) Cash Plus Stock $4.9 billion $60.52 $60.51 960,976 06/23/2017 0.02% 0.57%
+ LMIA 02/17/2017 Sonaca Group (N/A) All Cash $381.47 million $14.00 $14.00 208,535 06/30/2017 0.00% 0.00%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.50 7,429 12/31/2017 0.00% 0.00%
+ JIVE 05/01/2017 ESW Capital, LLC (N/A) All Cash $462 million $5.25 $5.25 130,568 06/30/2017 0.00% 0.00%
+ MSLI 05/11/2017 Norgine B.V. (N/A) All Cash $342 million $1.20 $1.20 76,509 09/30/2017 0.00% 0.00%
+ XTLY 05/30/2017 Vista Equity Partners (N/A) All Cash $354.28 million $15.65 $15.65 184,420 09/30/2017 0.00% 0.00%
+ BNCN 01/23/2017 Pinnacle Financial Partners, Inc. (PNFP) All Stock $1.9 billion $36.17 $36.20 440,794 09/30/2017 -0.07% -0.24%
+ VTTI 05/08/2017 VTTI B.V. (N/A) All Cash $1.59 billion $19.50 $19.55 419,396 09/30/2017 -0.26% -0.85%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.20 562,614 12/31/2017 -0.32% -0.58%
+ ATW 05/30/2017 Ensco plc (ESV) All Stock $1.7 billion $9.57 $9.62 6,737,547 09/30/2017 -0.54% -1.79%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $18.26 44,254 12/31/2017 -0.60% -1.09%
+ OB 05/02/2017 Intact Financial Corporation (N/A) All Cash $1.7 billion $18.10 $18.22 137,711 12/31/2017 -0.66% -1.19%
+ UCP 04/11/2017 Century Communities, Inc. (CCS) Cash Plus Stock $336 million $11.14 $11.25 40,461 09/30/2017 -0.99% -3.28%
+ CCN 05/29/2017 First Data Corporation (FDC) All Cash $750 million $15.00 $15.18 42,197 09/30/2017 -1.19% -3.93%
+ GSOL 05/23/2017 Expo Holdings I Ltd. (N/A) All Cash N/A $20.00 $20.35 32,047 12/31/2017 -1.72% -3.11%
+ GNVC 01/24/2017 Intrexon Corporation (XON) All Stock $6.3 million $6.64 $6.84 5,870 06/30/2017 -2.95% -59.90%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $36.74 139,060 06/30/2017 -11.54% -234.02%
+ FOR 04/13/2017 affiliates of Starwood Capital Group (N/A) All Cash $442.77 million $14.25 $16.30 2,030,033 09/30/2017 -12.58% -41.73%
+ INNL 04/04/2017 Gurnet Point L.P. (N/A) Special Conditions $209 million $1.75 $2.24 137,944 06/30/2017 -21.88% -443.58%
+ ANGI 05/02/2017 IAC/InterActiveCorp (IAC) Special Conditions $331.67 million $8.50 $11.46 623,994 12/31/2017 -25.83% -46.67%
+ RAI 01/17/2017 British American Tobacco p.l.c. (BTI) Cash Plus Stock $49.4 billion $47.88 $65.31 11,689,279 09/30/2017 -26.69% -88.55%

Disclaimer: I hold positions in Cabela’s (CAB), Rite Aid (RAD) 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: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria

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