Merger Arbitrage Mondays – February 19, 2018
Merger activity increased last week with seven new deals announced and four 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 was one new deal announced in the Deals in the Works section.
Deal Statistics:
| Total Number of Deals Closed in 2018 | 21 |
| Total Number of Deals Not Completed in 2018 | 2 |
| Total Number of Pending Deals |
| Cash Deals | 42 |
| Stock Deals | 14 |
| Stock & Cash Deals | 7 |
| Collars | 1 |
| Special Conditions | 7 |
| Total Number of Pending Deals | 70 |
| Total Deal Size | $536.68 billion |
New Deals:
- The acquisition of CSRA (CSRA) by General Dynamics (GD) for $9.6 billion or $40.75 per share in cash.
- The acquisition of Hardinge (HDNG) by an affiliate of Privet Fund Management for $245 million or $18.50 per share in cash.
- The acquisition of Nationstar Mortgage Holdings (NSM) by WMIH (WMIH) for $17.37 billion or $18.00 per share in a cash plus stock deal. We are treating this as an all cash deal.
- The acquisition of Crystal Rock Holdings (CRVP) by Cott Corporation (COT) for $35 million or $0.97 per share in cash.
- The acquisition of Infinity Property and Casualty Corporation (IPCC) by Kemper Corporation (KMPR) for $1.4 billion. Under the terms of the definitive merger agreement, Infinity shareholders will receive $51.60 in cash and 1.2019 Kemper common shares for each share of Infinity common stock.
- The acquisition of Layne Christensen Company (LAYN) by Granite Construction Incorporated (GVA) for $565 million in an all stock deal. Under the terms of the agreement, Layne shareholders will receive a fixed exchange ratio of 0.270 Granite shares for each share of Layne common stock they own.
- The acquisition of A. Schulman (SHLM) by LyondellBasell (LYB) for $2.25 billion or $42 per share in cash and one contingent value right per share.
Deal Updates:
- On February 12, 2018, The European Commission has notified Northrop Grumman Corporation (NOC) that it has approved Northrop Grumman’s acquisition of Orbital ATK (OA).
- February 14, 2018: According to the Wall Street Journal, AT&T (T) is considering an unusual bid to seek testimony from the Justice Department’s antitrust chief in the coming trial over its $85 billion purchase of Time Warner (TWX), part of the companies’ effort to challenge the legitimacy of the government’s lawsuit.
- February 15, 2018: The extraordinary general meeting of shareholders of Rosetta Genomics (ROSG) that was convened on February 15, 2018 has been adjourned to Thursday, February 22, 2018 in order to provide additional time for the solicitation of votes in favor of the proposed merger of the Company with a subsidiary of Genoptix.
- February 15, 2018: According to Reuters, The Federal Communications Commission inspector general will investigate whether its chairman was biased in favor of Sinclair Broadcast Group (SBGI), which is seeking approval from the watchdog for a $3.9 billion acquisition of Tribune Media (TRCO).
- On February 16, 2018, stockholders of General Cable (BGC) approved the Company’s previously announced acquisition by Prysmian Group for $30.00 per share in cash.
- February 16, 2018: According to Bloomberg, the U.S. Justice Department is fighting AT&T (T)’s search for evidence that President Donald Trump is behind the agency’s antitrust challenge to the takeover of Time Warner (TWX).
- February 16, 2018: Seattle Genetics (SGEN) announced that the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to Seattle Genetics’ proposed acquisition of Cascadian Therapeutics (CASC) expired on February 15, 2018.
Closed Deals:
- The acquisition of Barracuda Networks (CUDA) by Thoma Bravo on February 12, 2018. It took 77 days for this deal to be completed.
- The acquisition of CalAtlantic Group (CAA) by Lennar Corporation (LEN) on February 12, 2018. It took 105 days for this deal to be completed.
- The acquisition of Sucampo Pharmaceuticals (SCMP) by Mallinckrodt Public Limited Company (MNK) on February 13, 2018. It took 49 days for this deal to be completed.
- The acquisition of Exactech (EXAC) by TPG Capital on February 14, 2018. It took 114 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $2.97 | 04/01/2018 | 82.83% | 737.37% |
| SCG | 01/03/2018 | Dominion Energy, Inc. (D) | $50.71 | $37.71 | 06/30/2018 | 34.47% | 96.05% |
| ROSG | 12/15/2017 | Genoptix, Inc. (N/A) | $0.60 | $0.46 | 03/31/2018 | 30.43% | 277.72% |
| NXTM | 08/07/2017 | Fresenius Medical Care (N/A) | $30.00 | $24.62 | 06/30/2018 | 21.85% | 60.89% |
| AET | 12/03/2017 | CVS Health (CVS) | $205.24 | $178.51 | 12/31/2018 | 14.97% | 17.35% |
| TWX | 10/22/2016 | AT&T, Inc. (T) | $107.12 | $95.37 | 06/21/2018 | 12.32% | 36.86% |
| NSM | 02/13/2018 | WMIH Corp. (WMIH) | $18.00 | $16.82 | 12/31/2018 | 7.02% | 8.13% |
| AKRX | 04/24/2017 | Fresenius Kabi (N/A) | $34.00 | $31.85 | 03/31/2018 | 6.75% | 61.60% |
| MON | 09/14/2016 | Bayer AG (BAYRY) | $128.00 | $120.79 | 04/30/2018 | 5.97% | 31.12% |
| SXE | 11/01/2017 | American Midstream Partners, LP (AMID) | $1.94 | $1.83 | 06/30/2018 | 5.79% | 16.14% |
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) 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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