Merger Arbitrage Mondays – July 24, 2017

Merger activity increased last week with five new deals announced, six 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 three new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 116
Total Number of Deals Not Completed in 2017 6
Total Number of Pending Deals
Cash Deals 60
Stock Deals 21
Stock & Cash Deals 13
Special Conditions 6
Total Number of Pending Deals 100
Total Deal Size $822.85 billion

New Deals:

  1. The acquisition of Sevcon (SEV) by BorgWarner for $200 million or $22.00 per share in cash.
  2. The acquisition of Dominion Diamond Corporation (DDC) by The Washington Companies for $1.06 billion or $14.25 per share in cash.
  3. The acquisition of Rocket Fuel (FUEL) by Sizmek for $145 million or $2.6 per share in cash.
  4. The acquisition of Avista Corporation (AVA) by Hydro One Limited for $5.3 billion or $53 per share in cash.
  5. The acquisition of Bank Mutual Corporation (BKMU) by Associated Banc-Corp (ASB) for $482 million in an all stock deal. Under the terms of the agreement, Bank Mutual shareholders will receive 0.422 shares of Associated common stock for each share of Bank Mutual common stock.

Deal Updates:

  1. On July 17, 2017, following discussions with the Committee on Foreign Investment in the United States (CFIUS), Brocade Communications Systems (BRCD) and Broadcom Limited (AVGOagreed to withdraw and re-file their joint voluntary notice to CFIUS under the Defense Production Act of 1950, as amended, to allow more time for review and discussion with CFIUS in connection with the proposed acquisition. Once CFIUS accepts the joint voluntary notice, it will commence a new 30-day review period, which may be followed by a 45-day investigation period.
  2. On July 19, 2017, Reynolds American (RAI) announced that at the company’s special meeting of shareholders today, RAI shareholders approved three proposals related to British American Tobacco (BTI) proposed acquisition of RAI. Subject to the satisfaction or waiver of the remaining conditions set out in the merger agreement, the transaction is expected to close on or about July 25, 2017.
  3. On July 19, 2017, Akorn (AKRX) announced that its shareholders, at a special meeting, have overwhelmingly voted to approve the previously announced merger agreement providing for the acquisition of Akorn by Fresenius Kabi.
  4. July 21, 2017: A group of Democrats in Congress, in a letter this week, urged the Department of Justice and the Federal Trade Commission to conduct a more in-depth review of online retailer Amazon’s (AMZN) plan to buy grocer Whole Foods (WFM).

Closed Deals:

  1. The acquisition of Syneron Medical (ELOS) by funds advised by Apax Partners on July 17, 2017. It took 105 days for this deal to be completed.
  2. The acquisition of Merus Labs International (MSLI) by Norgine B.V. on July 17, 2017. It took 67 days for this deal to be completed.
  3. The acquisition of Panera Bread Company (PNRA) by JAB on July 18, 2017. It took 104 days for this deal to be completed.
  4. The acquisition of Sajan (SAJA) by AMPLEXOR International SA on July 19, 2017. It took 84 days for this deal to be completed.
  5. The acquisition of KCG Holdings (KCG) by Virtu Financial (VIRT) on July 20, 2017. It took 91 days for this deal to be completed.
  6. The acquisition of Norsat International (NSAT) by Hytera Project on July 20, 2017. It took 115 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Profit Annualized
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.50 07/31/2017 55.14% 2875.31%
DEST 12/20/2016 Orchestra-Premaman S.A. (KAZI.PA) $3.83 $2.83 10/31/2017 35.24% 129.91%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $6.72 09/30/2017 23.51% 126.20%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $117.38 12/31/2017 9.05% 20.64%
ATW 05/30/2017 Ensco plc (ESV) $8.62 $7.92 09/30/2017 8.89% 47.71%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $16.56 12/31/2017 8.70% 19.84%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $99.47 12/31/2017 8.07% 18.42%
HUN 05/22/2017 CLARIANT N (CLN.VX) $28.56 $26.72 12/31/2017 6.90% 15.74%
FCH 04/24/2017 RLJ Lodging Trust (RLJ) $7.62 $7.14 12/31/2017 6.77% 15.45%
AMFW 03/13/2017 John Wood Group Plc (WG.L) $5.97 $5.65 12/31/2017 5.72% 13.06%

List of all pending deals:

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

Disclaimer: I hold positions in Staples (SPLS), Whole Foods (WFM), Cabela’s (CAB) 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

Leave A Comment

You must be logged in to post a comment.