Merger Arbitrage Mondays – January 1, 2018

Happy New Year and welcome to the first Merger Arbitrage Mondays post of 2018. Merger activity decreased last week with one new deal announced and ten 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 Pending Deals
Cash Deals 39
Stock Deals 15
Stock & Cash Deals 8
Collars 1
Special Conditions 6
Total Number of Pending Deals 68
Total Deal Size $438.39 billion

New Deals:

  1. The acquisition of Sucampo Pharmaceuticals (SCMP) by Mallinckrodt Public Limited Company (MNK) for $1.2 billion or $18.00 per share in cash.

Deal Updates:

  1. On December 27, 2017, Brigade Capital Management, the holder of a 5.8 percent stake in Kindred Healthcare (KND), said it opposes a takeover of the medical-facility operator by a group of investors including health insurer Humana (HUM), because the price is too low.
  2. On December 28, 2017, Bonanza Creek Energy (BCEI) announced that it has agreed to terminate its previously announced agreement to merge with SandRidge Energy (SD). After consultation with SandRidge’s largest shareholders, SandRidge’s Board of Directors concluded that it would not receive approval for the transaction at its planned special meeting.  An agreement between Bonanza Creek and SandRidge was then reached to mutually terminate the merger agreement.
  3. On December 28, 2017, at a special meeting of Stockholders, the shareholders of Calgon Carbon Corporation (CCCapproved the merger of the Company with Kuraray. The parties continue to target the first quarter of 2018 for the closing of the merger.
  4. December 31, 2017: We are extending the closing dates for the MoneyGram International (MGI) and Sinovac Biotech (SVA) deals to January 31, 2018 in the absence of any information from the companies about the status of the deal.

Closed Deals:

  1. The acquisition of Arc Logistics Partners (ARCX) by Zenith on December 26, 2017. It took 119 days for this deal to be completed.
  2. The acquisition of Fortress Investment Group (FIG) by SoftBank Group (SFTBY) on December 27, 2017. It took 316 days for this deal to be completed.
  3. The acquisition of Gigamon (GIMO) by Elliott Management on December 27, 2017. It took 62 days for this deal to be completed.
  4. The acquisition of MGC Diagnostics Corporation (MGCD) by affiliates of Altus Capital Partners on December 28, 2017. It took 31 days for this deal to be completed.
  5. The acquisition of TerraForm Global (GLBL) by Brookfield Asset Management (BAM) on December 28, 2017. It took 297 days for this deal to be completed.
  6. The acquisition of C. R. Bard (BCR) by Becton, Dickinson and Company (BDX) on December 29, 2017. It took 250 days for this deal to be completed.
  7. The acquisition of HSN (HSNI) by Liberty Interactive Corporation (QVCA) on December 29, 2017. It took 176 days for this deal to be completed.
  8. The acquisition of WashingtonFirst Bankshares (WFBI) by Sandy Spring Bancorp (SASR) on December 29, 2017. It took 227 days for this deal to be completed.
  9. The acquisition of Sunshine Bancorp (SBCP) by CenterState Banks (CSFL) on December 29, 2017. It took 137 days for this deal to be completed.
  10. The acquisition of Xenith Bankshares (XBKS) by Union Bankshares Corporation (UBSH) on December 29, 2017. It took 221 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 $3.11 04/01/2018 74.60% 302.54%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $13.18 01/31/2018 36.57% 444.94%
SXE 11/01/2017 American Midstream Partners, LP (AMID) $2.14 $1.69 06/30/2018 26.39% 53.51%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $24.23 06/30/2018 23.81% 48.29%
TWX 10/22/2016 AT&T, Inc. (T) $109.62 $91.47 06/21/2018 19.84% 42.36%
AET 12/03/2017 CVS Health (CVS) $205.74 $180.39 12/31/2018 14.05% 14.09%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $116.78 03/31/2018 9.61% 39.40%
ROSG 12/15/2017 Genoptix, Inc. (N/A) $0.60 $0.560 03/31/2018 7.14% 29.29%
AKRX 04/24/2017 Fresenius Kabi (N/A) $34.00 $32.23 03/31/2018 5.49% 22.52%
SNI 07/31/2017 Discovery Communications, Inc. (DISCK) $90.00 $85.38 03/31/2018 5.41% 22.19%

List of all pending deals:

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

Disclaimer: I hold positions in Southcross Energy Partners (SXE), Sparton Corporation (SPA), Rosetta Genomics (ROSG) and Akorn (AKRX). 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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