Merger Arbitrage Mondays – November 27, 2017

Merger activity decreased last week with two new deals announced and two pending 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 202
Total Number of Deals Not Completed in 2017 11
Total Number of Pending Deals
Cash Deals 35
Stock Deals 20
Stock & Cash Deals 8
Collars 1
Special Conditions 8
Total Number of Pending Deals 71
Total Deal Size $958.39 billion

New Deals:

  1. The acquisition of Cavium (CAVM) by Marvell Technology Group (MRVL) for $6 billion in a cash plus stock deal. Under the terms of the definitive agreement, Marvell will pay Cavium shareholders $40.00 in cash and 2.1757 Marvell common shares for each share of Cavium common stock.
  2. The acquisition of Time, Inc. (TIME) by Meredith Corporation (MVP) for $2.8 billion in an all cash deal. Under the terms of the definitive agreement, Meredith will pay Time shareholders $18.50 in cash. We added this potential acquisition to the Deals in the Works section of our website on November 16, 2017.

Deal Updates:

  1. November 6 ,2017: The European Commission has resumed its antitrust review of Bayer’s planned takeover of Monsanto (MON) after the companies were given time to provide more information. The new deadline for the Commission to decide over the deal is now March 5, 2018. Bayer reiterated it was aiming to wrap up the deal in early 2018.
  2. On November 20, 2017, The Justice Department sued to block AT&T (T) from taking over Time Warner (TWX), a sweeping challenge to a deal it says would give one company too much control in a rapidly evolving media landscape.
  3. On November 20, 2017, NewStar Financial (NEWSannounced the expiration of the 30 day “go shop” period included in the previously announced merger agreement between First Eagle Investment Management and NewStar and related asset purchase agreement with a newly formed investment fund sponsored by GSO Capital Partners LP.
  4. On November 20, 2017, Sparton Corporation (SPA) announced that the Committee on Foreign Investment in the United States (CFIUS) completed its review process and stated that there are no unresolved national security concerns with respect to the previously announced proposed acquisition of Sparton by Ultra Electronics Holdings.
  5. On November 21, 2017, Avista (AVA) shareholders approved the acquisition by Hydro One Limited.
  6. On November 22, 2017, Sandy Spring Bancorp (SASR) announced that it has received all of the requisite regulatory approvals from the Board of Governors of the Federal Reserve System, the Maryland Office of the Commissioner of Financial Regulation, and the Virginia State Corporation Commission to complete the acquisition of WashingtonFirst Bankshares (WFBI) and the related merger of WashingtonFirst Bank into Sandy Spring Bank. The transaction is expected to close on January 1, 2018.
  7. November 22, 2017: According to Reuters, Brazil’s antitrust agency Cade could extend by as up to 90 days its analysis of the takeover of seeds company Monsanto (MON) by Bayer AG.

Closed Deals:

  1. The acquisition of VWR Corporation (VWR) by Avantor on November 21, 2017. It took 200 days for this deal to be completed.
  2. The acquisition of Richmont Mines (RIC) by Alamos Gold (AGI) on November 23, 2017. It took 73 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 $3.45 12/31/2017 57.39% 616.11%
BCEI 11/15/2017 SandRidge Energy (SD) $36.00 $28.38 03/31/2018 26.85% 79.03%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $14.58 12/31/2017 23.46% 251.82%
SXE 11/01/2017 American Midstream Partners, LP (AMID) $2.00 $1.70 06/30/2018 17.65% 29.96%
TWX 10/22/2016 AT&T, Inc. (T) $103.77 $89.50 12/31/2017 15.95% 171.19%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $26.03 06/30/2018 15.25% 25.89%
SNI 07/31/2017 Discovery Communications, Inc. (DISCK) $90.00 $80.37 03/31/2018 11.98% 35.27%
TIME 11/26/2017 Meredith Corporation (MDP) $18.50 $16.90 03/31/2018 9.47% 27.87%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $118.13 03/31/2018 8.36% 24.59%
YUME 09/05/2017 RhythmOne plc (RTHM.L) $4.04 $3.77 03/31/2018 7.16% 21.08%

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 Time (TIME), Fortress Investment Group (FIG) 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

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