Merger Arbitrage Mondays – March 26, 2018
Merger activity decreased last week with four 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 was one new deal announced in the Deals in the Works section.
Deal Statistics:
New Deals:
- The acquisition of Stewart Information Services Corporation (STC) by Fidelity National Financial (FNF) for $1.2 billion in a cash plus stock deal. Under the terms of the agreement, Stewart shareholders will receive $25.00 in cash and 0.6425 common shares of Fidelity for each share of Stewart common stock they hold at closing. The spread on this deal was an unusually high 19.5% on Monday (without taking dividend payments into account) but declined through the week to end at 15.4% on Friday.
- The acquisition of Klondex Mines (KLDX) by Hecla Mining Company (HL) for $462 million in a cash plus stock deal. Under the terms of the agreement, Klondex shareholders may elect to receive either US$2.47 in cash (Cash Alternative) or 0.6272 of a Hecla share (Share Alternative), each full Hecla share being currently valued at US$3.94, subject in each case to pro-ration based on a maximum cash consideration of US$157.4 million and a maximum number of Hecla shares issued of 77.4 million. If all Klondex shareholders elect either the Cash Alternative or the Share Alternative, each Klondex shareholder would be entitled to receive US$0.8411 in cash and 0.4136 Hecla shares. Klondex shareholders may also elect to receive US$0.8411 in cash and 0.4136 of a Hecla share and Klondex shareholders who fail to make an election will automatically receive US$0.8411 in cash and 0.4136 of a Hecla share. Klondex shareholders will also receive shares of a newly formed company (Klondex Canada) which will hold Klondex’s Canadian assets, including the True North and Bison Gold Resources properties. We are treating this as a cash plus stock deal where Klondex shareholders will receive US$0.8411 in cash and 0.4136 of a Hecla share.
- The acquisition of Orbotech (ORBK) by KLA-Tencor Corporation (KLAC) for $3.2 billion in a cash plus stock deal. Under the terms of the agreement, Orbotech shareholders will receive $38.86 in cash and 0.25 of a share of KLA-Tencor common stock in exchange for each ordinary share of Orbotech.
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