Merger Arbitrage Mondays – January 29, 2018

  • January 29, 2018

Merger activity increased last week with four new deals announced. 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.

We received several emails of support from investors who upgraded to the premium version of InsideArbitrage.com last week and also some emails where investors expressed their frustration with the paywall and the cost of the subscription. Over the years, as we expanded the scope of the website and added new tools and strategies, the cost to operate the website started going up and we had to start thinking in terms of building a sustainable business. This will allow us to continue investing in the site and we plan to launch a new insider heat map tool this week and a fourth event-driven strategy next month. The following areas of the website continue to remain free for investors who don’t want to pay for additional tools,

The Merger Arbitrage News Page

The Merger Arbitrage Mondays Posts (excluding the all pending deals section)

The Upcoming Spinoffs Page

The Insider Buying Page

The Insider Selling Page

The Insider Weekends Posts (excluding all management purchases)

For those of you who find value in the premium tools like the Merger Arbitrage Tool, the Deals in the Works Tool, the Completed Spinoffs list, the ability to track specific deals and the ability to filter insider purchases by specific criteria, the 33% introductory discount for both monthly and annual subscriptions is valid through Wednesday. Just enter the promo code 2018Launch and the discount will be applied. With this discount and an annual subscription, you can save almost 50% on our standard monthly price bringing your cost down to just $50/month.

Deal Statistics:

Total Number of Deals Closed in 20184
Total Number of Deals Not Completed in 20182
Total Number of Pending Deals
Cash Deals42
Stock Deals17
Stock & Cash Deals8
Collars1
Special Conditions6
Total Number of Pending Deals73
Total Deal Size$489.78 billion

New Deals:

  1. The acquisition of Bioverativ (BIVV) by Sanofi (SNY) for $11.6 billion or $105 per share in cash.
  2. The acquisition of Juno Therapeutics (JUNO) by Celgene Corporation (CELG) for $9 billion or $87 per share in cash. We added Juno as a potential deal to the Deals in the Works section on January 17 and the price after the news of the potential deal came out was around $68.
  3. The acquisition of Validus Holdings (VR) by American International Group (AIG) for $5.56 billion or $68 per share in cash.
  4. The acquisition of U.S. Geothermal (HTM) by Ormat Technologies (ORA) for $220.08 million or $5.45 per share in cash.

Deal Updates:

  1. January 22, 2018: According to Reuters, the judge hearing the Justice Department’s lawsuit to stop AT&T (T) from buying Time Warner (TWXordered the department on Monday to seek permission to give the two companies access to rivals’ pricing data.
  2. On January 23, 2018, Sigma Designs (SIGM) announced that Silicon Labs (SLAB) will no longer acquire the full company. Sigma plans to sell its Z-Wave business to Silicon Labs for $240 million in an asset transaction contingent upon approval by Sigma Designs’ shareholders.
  3. On January 23, 2018, Associated Banc-Corp (ASB) announced that it has received regulatory approvals for the acquisition of Bank Mutual Corporation (BKMU) from the Office of the Comptroller of the Currency and the Federal Reserve Board. The Merger is expected to close on February 1, 2018, subject to customary closing conditions.
  4. On January 25, 2018, McDermott International (MDR) and CB&I (CBI) announced that the Federal Trade Commission has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to their proposed combination.
  5. On January 25, 2018, NXP Semiconductors (NXPI) announced that in accordance with the terms of the Purchase Agreement with Qualcomm (QCOM), the End Date of the transaction with Qualcomm has been automatically extended to April 25, 2018.
  6. On January 26, 2018, Meredith Corporation (MDP) announced that it has extended its previously announced tender offer to purchase all of the outstanding shares of common stock of Time  (TIME). The Offer will now expire on January 30, 2018, unless further extended.

Top 10 deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnualized
Profit
GNW10/23/2016China Oceanwide Holdings Group Co., Ltd. (N/A)$5.43$3.1604/01/201871.84%422.90%
NXTM08/07/2017Fresenius Medical Care (N/A)$30.00$25.0706/30/201819.66%47.22%
SCG01/03/2018Dominion Energy, Inc. (D)$50.51$43.4306/30/201816.30%39.14%
TWX10/22/2016AT&T, Inc. (T)$108.10$94.8306/21/201813.99%35.71%
YUME09/05/2017RhythmOne plc (RTHM.L)$4.33$3.9003/31/201811.07%66.26%
SXE11/01/2017American Midstream Partners, LP (AMID)$2.42$2.1806/30/201810.83%26.00%
AET12/03/2017CVS Health (CVS)$213.71$193.1012/31/201810.67%11.59%
GNRT12/21/2017Euronav NV (EURN)$6.58$6.1206/30/20187.54%18.09%
AKRX04/24/2017Fresenius Kabi (N/A)$34.00$32.4703/31/20184.71%28.20%
WGL01/25/2017AltaGas Ltd. (N/A)$88.25$84.3106/30/20184.67%11.22%

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 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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