Merger Arbitrage Mondays – November 13, 2017

Merger activity decreased last week with two new deals announced and one pending deal 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 2017 190
Total Number of Deals Not Completed in 2017 11
Total Number of Pending Deals
Cash Deals 40
Stock Deals 21
Stock & Cash Deals 7
Special Conditions 10
Total Number of Pending Deals 78
Total Deal Size $946.97 billion

New Deals:

  1. The acquisition of Alon USA Partners (ALDW) by Delek US Holdings (DK) for $778.02 million in an all stock deal. Under terms of the merger agreement, the owners of the outstanding common units in Alon Partners that Delek US and its affiliates do not currently own will receive a fixed exchange ratio of 0.49 Delek US shares for each common unit of Alon Partners.
  2. The acquisition of magicJack VocalTec (CALL) by B. Riley Financial (RILY) for $143 million or $8.71 per share in cash.

Deal Updates:

  1. On November 6, 2017, Broadcom (AVGOproposed to acquire Qualcomm (QCOM) for $70.00 per share in cash and stock in a transaction valued at $130 billion. Broadcom’s proposal will stand whether Qualcomm’s Pending Acquisition of NXP (NXPI) is consummated on the currently disclosed terms of $110 per share or the NXP transaction is terminated.
  2. On November 7, 2017, Hawaiian Telcom Holdco (HCOM) announced that its stockholders voted overwhelmingly to approve the merger agreement with Cincinnati Bell (CBB).
  3. On November 7, 2017, Nabors Industries (NBR) and Tesco Corporation (TESO), jointly announced that the two companies have recently received anti-trust clearance from the U.S. Department of Justice and the Canada Competition Bureau.  In addition, the approval process with the Federal Antimonopoly Service of the Russian Federation was initiated, with its determination expected in the next few weeks.
  4. On November 8, 2017, U.S. antitrust regulators pressed for major changes to AT&T’s (T) proposed takeover of Time Warner (TWX), with demands that threaten one of the biggest media deals ever.
  5. On November 9, 2017, PharMerica Corporation (PMC), announced that at its special meeting of stockholders, a majority of the outstanding shares of PharMerica common stock voted to approve the adoption of the previously disclosed definitive merger agreement pursuant to which a newly formed company controlled by KKR, with Walgreens Boots Alliance (WBA) as a minority investor, will acquire PharMerica.
  6. On November 9, 2017, Rice Energy (RICE) announced that its stockholders overwhelmingly approved the adoption of the previously announced Agreement and Plan of Merger between Rice Energy and EQT Corporation (EQT). With the receipt of both sets of required stockholder approvals, the transaction is expected to close Monday, November 13, 2017.
  7. On November 10, 2017, CombiMatrix Corporation (CBMX) announced that, based upon the final vote count for the Company’s Special Meeting of Stockholders, a majority of its stockholders voted to approve the previously announced merger agreement with Invitae Corporation (NVTA).

Closed Deals:

  1. The acquisition of Bankrate (RATE) by Red Ventures on November 8, 2017. It took 128 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
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.57 12/31/2017 52.10% 396.18%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $15.00 12/31/2017 20.00% 152.08%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $90.60 12/31/2017 18.65% 141.84%
CBMX 07/31/2017 Invitae Corporation (NVTA) $8.33 $7.05 12/31/2017 18.16% 138.06%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $25.79 06/30/2018 16.32% 26.02%
SNI 07/31/2017 Discovery Communications, Inc. (DISCK) $90.00 $79.18 03/31/2018 13.67% 36.14%
SXE 11/01/2017 American Midstream Partners, LP (AMID) $2.10 $1.92 06/30/2018 9.17% 14.61%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $118.30 01/31/2018 8.20% 37.88%
YUME 09/05/2017 RhythmOne plc (RTHM.L) $4.10 $3.81 03/31/2018 7.63% 20.17%
GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) $5.10 $4.75 12/31/2017 7.37% 56.03%

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 Fortress Investment Group (FIG), CombiMatrix (CBMX) and NewStar Financial (NEWS). 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

One Comment

  1. GeorgeCiardi
    November 13, 2017 at 6:22 am

    You can cross off DMTX as well. Pretty sure it closed early last week.

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