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Merger Arbitrage Mondays – February 12, 2018

  • February 12, 2018

Merger activity decreased last week with one new deal announced and three 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 three new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 201817
Total Number of Deals Not Completed in 20182
Total Number of Pending Deals
Cash Deals41
Stock Deals14
Stock & Cash Deals6
Collars1
Special Conditions6
Total Number of Pending Deals67
Total Deal Size$505.21 billion

New Deals:

  1. The acquisition of 8point3 Energy Partners (CAFD) by Capital Dynamics for $1.7 billion. Under the terms of the agreement, the Partnership’s Class A shareholders and First Solar (FSLR) and SunPower Corporation (SPWR), as holders of common and subordinated units in OpCo, will receive $12.35 per share or per unit in cash, plus a preset daily amount representing cash expected to be generated from December 1, 2017 through closing less any distributions received after the execution of the Merger Agreement and prior to closing.

Deal Updates:

  1. February 5, 2018: According to Reuters, Bayer (BAYRY) has offered concessions to allay EU antitrust concerns about its $63.5 billion bid for U.S. rival Monsanto (MON), the European Commission said on Monday, extending its investigation of the deal to April 5. We are extending the deal expiration by a month to April 30, 2018.
  2. On February 5, 2018, Broadcom (AVGOsweetened its bid to buy Qualcomm (QCOM) for more than $121 billion. The new offer also puts pressure on Qualcomm to either buy NXP Semiconductors (NXPI) at $110 per share or terminate the $38 billion deal.
  3. On February 6, 2018, Genworth Financial (GNW) said that its application for assent to a takeover by China Oceanwide Holdings Group had been refiled, after agreeing to changes the duo hope will alleviate U.S. regulatory concerns.
  4. On February 6, 2018, Discovery Communications (DISCA) announced that the European Commission has cleared Discovery’s proposed acquisition of Scripps Networks Interactive (SNI), subject to conditions.
  5. On February 7, 2018, Sinovac Biotech (SVA) announced that, in connection with its previously announced going private transaction, the Company has filed a going-private transaction statement on Schedule 13E-3 with the United States Securities and Exchange Commission. The Company plans to announce the results of the shareholders meeting after it completes evaluating the quorum and results. We have extended the closing date for this deal to March 31, 2018.
  6. On February 7, 2018, Brazilian antitrust agency Cade approved Bayer’s (BAYRYproposed takeover of Monsanto (MON) without requiring further asset sales beyond a global proposal announced last October.
  7. February 8, 2018: Sanofi (SNY) announced that on February 7, 2018, it commenced a tender offer to acquire all of the outstanding shares of common stock of Bioverativ (BIVV). The Offer is scheduled to expire on Wednesday, March 7, 2018, unless the Offer is extended in accordance with the Merger Agreement and the applicable rules and regulations of the Securities and Exchange Commission.
  8. February 8, 2018: According to Reuters, four Democrats in the House of Representatives wrote the Justice Department on Thursday to request documents related to its decision to file a lawsuit to stop AT&T (T) from buying Time Warner (TWX).
  9. On February 9, 2018, Seattle Genetics (SGEN) announced that Valley Acquisition, has commenced its previously announced tender offer for all outstanding shares of common stock of Cascadian Therapeutics (CASC). The Offer is scheduled to expire on March 9, 2018.
  10. On February 9, 2018, Qualcomm Incorporated (QCOM) announced that Qualcomm River Holdings, has extended the offering period of its previously announced cash tender offer to purchase all of the outstanding common shares of NXP Semiconductors (NXPI). The tender offer is now scheduled to expire on February 23, 2018, unless extended or earlier terminated, in either case pursuant to the terms of the Purchase Agreement.

Closed Deals:

  1. The acquisition of Buffalo Wild Wings (BWLD) by Arby’s Restaurant Group on February 5, 2018. It took 69 days for this deal to be completed.
  2. The acquisition of Alon USA Partners (ALDW) by Delek US Holdings (DK) on February 7, 2018. It took 91 days for this deal to be completed.
  3. The acquisition of Ignyta (RXDX) by Roche Holding AG on February 8, 2018. It took 48 days for this deal to be completed.

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$2.7604/01/201896.74%735.62%
SCG01/03/2018Dominion Energy, Inc. (D)$49.76$36.3006/30/201837.08%98.08%
NXTM08/07/2017Fresenius Medical Care (N/A)$30.00$23.2706/30/201828.92%76.49%
ROSG12/15/2017Genoptix, Inc. (N/A)$0.60$0.5003/31/201820.00%155.32%
AET12/03/2017CVS Health (CVS)$203.13$176.3912/31/201815.16%17.19%
TWX10/22/2016AT&T, Inc. (T)$105.55$92.4006/21/201814.24%40.28%
MON09/14/2016Bayer AG (BAYRY)$128.00$118.6404/30/20187.89%37.40%
SXE11/01/2017American Midstream Partners, LP (AMID)$1.94$1.8106/30/20186.96%18.41%
XCRA04/10/2017an affiliate of Sino IC Capital and Unic Capital Management (N/A)$10.25$9.6307/31/20186.44%13.91%
AKRX04/24/2017Fresenius Kabi (N/A)$34.00$32.1203/31/20185.85%45.45%

List of all pending deals:

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

SymbolAnnounced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
VolumeClosing
Date
ProfitAnnu.
Profit
+GNW10/23/2016China Oceanwide Holdings Group Co., Ltd. (N/A)All Cash$2.7 billion$5.43$2.766,679,72304/01/201896.74%735.62%
+SCG01/03/2018Dominion Energy, Inc. (D)All Stock$14.6 billion$49.76$36.301,687,30106/30/201837.08%98.08%
+NXTM08/07/2017Fresenius Medical Care (N/A)All Cash$1.62 billion$30.00$23.27417,73006/30/201828.92%76.49%
+ROSG12/15/2017Genoptix, Inc. (N/A)All Cash$10 million$0.60$0.5011,95103/31/201820.00%155.32%
+AET12/03/2017CVS Health (CVS)Cash Plus Stock$77 billion$203.13$176.394,041,90412/31/201815.16%17.19%
+TWX10/22/2016AT&T, Inc. (T)Collars$108.7 billion$105.55$92.408,077,13706/21/201814.24%40.28%
+MON09/14/2016Bayer AG (BAYRY)All Cash$63.5 billion$128.00$118.644,760,51104/30/20187.89%37.40%
+SXE11/01/2017American Midstream Partners, LP (AMID)All Stock$815 million$1.94$1.81297,30306/30/20186.96%18.41%
+XCRA04/10/2017an affiliate of Sino IC Capital and Unic Capital Management (N/A)All Cash$439.97 million$10.25$9.63313,32907/31/20186.44%13.91%
+AKRX04/24/2017Fresenius Kabi (N/A)All Cash$4.75 billion$34.00$32.121,390,46703/31/20185.85%45.45%
+GNRT12/21/2017Euronav NV (EURN)All Stock$2.08 billion$5.64$5.33625,00406/30/20185.74%15.17%
+COL09/04/2017United Technologies Corp. (UTX)Special Conditions$30 billion$140.00$133.242,573,92009/30/20185.07%8.05%
+AVA07/19/2017Hydro One Limited (N/A)All Cash$5.3 billion$53.00$50.45403,84412/31/20185.05%5.73%
+ABLX01/29/2018Sanofi (SNY)All Cash$3.25 billion$55.75$53.18390,64606/30/20184.83%12.78%
+CBI12/18/2017McDermott International, Inc. (MDR)All Stock$3.73 billion$18.34$17.552,122,10906/30/20184.52%11.96%
+CALL11/09/2017B. Riley Financial, Inc. (RILY)All Cash$143 million$8.71$8.35114,32806/30/20184.31%11.40%
+PNK12/18/2017Penn National Gaming, Inc. (PENN)Cash Plus Stock$5.85 billion$31.58$30.321,111,69112/31/20184.14%4.69%
+WGL01/25/2017AltaGas Ltd. (N/A)All Cash$6.4 billion$88.25$84.80349,18406/30/20184.07%10.76%
+SNI07/31/2017Discovery Communications, Inc. (DISCK)Special Conditions$14.6 billion$90.00$86.611,428,12503/31/20183.91%30.40%
+ANCB04/11/2017Washington Federal, Inc. (WAFD)Special Conditions$63.9 million$25.75$24.8080106/30/20183.83%10.13%
+SPA07/07/2017Ultra Electronics Holdings (N/A)All Cash$308.13 million$23.50$22.6854,40203/31/20183.62%28.08%
+HCOM07/10/2017Cincinnati Bell (CBB)Cash Plus Stock$650 million$28.20$27.3218,79312/31/20183.22%3.65%
+CAVM11/20/2017Marvell Technology Group Ltd. (MRVL)Cash Plus Stock$6 billion$86.34$83.811,652,87306/30/20183.02%7.99%
+OA09/18/2017Northrop Grumman Corporation (NOC)All Cash$9.2 billion$134.50$131.04705,28206/30/20182.64%6.98%
+TRCO05/08/2017Sinclair Broadcast Group, Inc. (SBGI)Cash Plus Stock$6.6 billion$43.04$42.191,888,43203/31/20182.01%15.62%
+ZAIS01/12/2018Z Acquisition LLC (N/A)All Cash$42.2 million$4.10$4.022,78409/30/20181.99%3.16%
+ACFC11/17/2017Ameris Bancorp (ABCB)Cash Plus Stock$145 million$10.35$10.1564,18106/30/20181.96%5.19%
+FNBG12/12/2017TriCo Bancshares (TCBK)All Stock$315.3 million$36.45$35.7615,54506/30/20181.92%5.08%
+BIVV01/22/2018Sanofi (SNY)All Cash$11.6 billion$105.00$103.052,999,89004/30/20181.89%8.97%
+BGC12/04/2017Prysmian Group (N/A)All Cash$3 billion$30.00$29.452,308,20209/30/20181.87%2.96%
+KS01/29/2018WestRock Company (WRK)All Cash$4.9 billion$35.00$34.443,746,74109/30/20181.63%2.58%
+JUNO01/22/2018Celgene Corporation (CELG)All Cash$9 billion$87.00$85.695,741,10603/31/20181.53%11.87%
+HTM01/24/2018Ormat Technologies Inc. (ORA)All Cash$220.08 million$5.45$5.37188,93706/30/20181.49%3.94%
+JXSB01/18/2018CNB Bank & Trust (N/A)All Cash$39.7 million$33.70$33.2550006/30/20181.35%3.58%
+JASO11/17/2017JASO Holdings Limited, JASO Parent Limited and JASO Acquisition Limited (N/A)All Cash$677.43$7.55$7.45780,14503/31/20181.34%10.42%
+CPLA10/30/2017Strayer Education, Inc. (STRA)All Stock$820.96 million$79.88$78.8587,88209/30/20181.30%2.07%
+DYN10/30/2017Vistra Energy Corp. (VST)All Stock$12.3 billion$11.66$11.525,776,81706/30/20181.20%3.16%
+DST01/11/2018SS&C Technologies Holdings, Inc. (SSNC)All Cash$5.4 billion$84.00$83.072,043,74409/30/20181.12%1.78%
+HAWK01/16/2018Silver Lake and P2 Capital Partners (N/A)All Cash$3.5 billion$45.25$44.802,796,75906/30/20181.00%2.66%
+CPN08/18/2017Energy Capital Partners (N/A)All Cash$17.3 billion$15.25$15.103,366,03703/31/20180.99%7.71%
+VR01/22/2018American International Group, Inc. (AIG)All Cash$5.56 billion$68.00$67.354,183,36306/30/20180.97%2.55%
+STRP05/11/2017Verizon Communications Inc. (VZ)Special Conditions$3.1 billion$184.00$182.67181,07803/15/20180.73%8.57%
+CCC09/21/2017Kuraray (N/A)All Cash$1.3 billion$21.50$21.351,551,41503/31/20180.70%5.46%
+CALD01/29/2018SAP SE (SAP)All Cash$2.4 billion$36.00$35.752,340,04806/30/20180.70%1.85%
+MSFG07/25/2017First Financial Bancorp. (FFBC)All Stock$1 billion$38.57$38.3182,02503/31/20180.69%5.32%
+AFAM11/16/2017LHC Group, Inc. (LHCG)All Stock$1.06 billion$58.16$57.80111,45306/30/20180.62%1.64%
+DEL10/23/2017Potlatch Corporation (PCH)All Stock$1.18 billion$89.01$88.59143,97106/30/20180.47%1.25%
+KTEC01/25/2018Duravant LLC (N/A)All Cash$175 million$26.75$26.6433,07003/31/20180.41%3.21%
+BSF08/22/2017Arvest Bank (N/A)All Cash$391 million$10.28$10.25102,74903/31/20180.29%2.27%
+CSBK11/02/2017Kearny Financial Corp. (KRNY)All Stock$408 million$15.66$15.6289,06804/15/20180.27%1.57%
+CASC01/31/2018Seattle Genetics, Inc. (SGEN)All Cash$614 million$10.00$9.991,263,95503/31/20180.10%0.78%
+APLP01/02/2018Archrock, Inc. (AROC)All Stock$2.28 billion$12.46$12.45706,29406/30/20180.08%0.21%
+CUDA11/27/2017Thoma Bravo, LLC (N/A)All Cash$1.29 billion$27.55$27.546,171,55002/28/20180.04%0.83%
+CAFD02/05/2018Capital Dynamics (N/A)All Cash$1.7 billion$12.35$12.351,001,65408/31/20180.00%0.00%
+ENTL12/07/2017Stryker Corporation (SYK)All Cash$662 million$24.00$24.00269,25506/30/20180.00%0.00%
+KND12/19/2017TPG Capital, Welsh, Carson, Anderson & Stowe and Humana Inc. (HUM)All Cash$4.1 billion$9.00$9.002,691,39106/30/20180.00%0.00%
+SCMP12/26/2017Mallinckrodt Public Limited Company (MNK)All Cash$1.2 billion$18.00$18.001,136,93003/31/20180.00%0.00%
+LNCE12/18/2017Campbell Soup Company (CPB)All Cash$5.8 billion$50.00$50.011,478,14205/15/2018-0.02%-0.08%
+EXAC10/23/2017TPG Capital (N/A)All Cash$737 million$49.25$49.30286,70103/31/2018-0.10%-0.79%
+TIG01/05/2018Takeda Pharmaceutical Company Limited (N/A)All Cash$520.25 million$42.72$42.8157104/30/2018-0.21%-1.00%
+PGEM01/31/2018Clayton, Dubilier & Rice (CD&R) (N/A)All Cash$2.4 billion$21.64$21.701,162,48606/30/2018-0.28%-0.73%
+RGC12/05/2017Cineworld Group (N/A)All Cash$5.9 billion$23.00$23.114,198,15603/02/2018-0.48%-9.65%
+BYBK09/27/2017Old Line Bancshares, Inc. (OLBK)All Stock$128.6 million$12.67$12.752,17706/30/2018-0.62%-1.64%
+CAA10/30/2017Lennar Corporation (LEN)All Stock$9.3 billion$51.94$52.711,296,29003/31/2018-1.46%-11.34%
+NXPI10/27/2016QUALCOMM Incorporated (QCOM)All Cash$38 billion$110.00$115.784,053,36604/25/2018-4.99%-25.31%
+SVA06/26/2017Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A)All Cash$437.59 million$7.00$8.1491,87903/31/2018-14.00%-108.76%
+FOX12/14/2017The Walt Disney Company (DIS)Special Conditions$66.1 billion$29.59$35.195,179,83109/30/2018-15.91%-25.25%
+GNCMA04/04/2017Liberty Ventures (LVNTA)Special Conditions$2.68 billion$32.50$39.04101,56603/31/2018-16.75%-130.10%

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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