Merger Arbitrage Mondays – April 16, 2018

Merger activity remained unchanged last week with two new deals 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 no new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2018 44
Total Number of Deals Not Completed in 2018 5
Total Number of Pending Deals
Cash Deals 44
Stock Deals 11
Stock & Cash Deals 14
Collars 1
Special Conditions 6
Total Number of Pending Deals 75
Total Deal Size $731.63 billion

New Deals:

  1. The acquisition of VeriFone Systems (PAY) by Francisco Partners for $3.4 billion or $23.04 per share in cash.
  2. The acquisition of Analogic Corporation (ALOG) by Altaris Capital Partners for $1.1 billion or $84.00 per share in cash.
  3. The acquisition of eHi Car Services Limited (EHIC) by Teamsport Parent Limited in a going-private transaction for $1.19 billion or $13.50 per share in cash.

Deal Updates:

  1. April 9, 2018: According to the Wall Street Journal, The U.S. Justice Department will allow German drugs and pesticides group Bayer AG (BAYRY) to acquire Monsanto (MON) in a $62.5 billion deal, after the companies agreed to sell more assets to win antitrust approval.
  2. On April 10, 2018, Rosetta Genomics (ROSG) announced that Kenneth Berlin will resign as President and CEOeffective April 18, 2018 to pursue other opportunities.
  3. April 10, 2018: According to The Wall Street Journal, Sinclair Broadcast Group (SBGI) is encountering resistance from the Federal Communications Commission as it seeks approval for its acquisition of Tribune Media (TRCO).
  4. April 11, 2018: According to Reuters, Germany’s Bayer (BAYRYplans to sell its digital farming business to BASF  as part of changes to concessions it has offered to win over antitrust regulators for its proposed takeover of Monsanto (MON).
  5. On April 13, 2018, Hydro One Limited and Avista Corporation (AVAannounced the achievement of an important milestone in the regulatory approval process of their proposed merger. The companies have filed an all-parties settlement agreement in the merger proceeding before the Idaho Public Utilities Commission. This represents a full settlement which all parties have agreed is consistent with the public interest.
  6. On April 13, 2018, Microchip Technology Incorporated (MCHP) announced, in connection with its pending acquisition of Microsemi Corporation (MSCC), the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
  7. On April 13, 2018, Qualcomm Incorporated (QCOM) announced that it 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 April 20, 2018, unless extended or earlier terminated.
  8. April 13, 2018: According to The Wall Street Journal, China is slowing reviews of multibillion-dollar takeover deals being pursued by Qualcomm (QCOM) and Bain Capital, as U.S.-China trade tensions escalate. The delay could end up quashing Qualcomm’s planned purchase of NXP Semiconductors (NXPI).
  9. April 13, 2018, According to The Wall Street Journal, some Rite Aid (RADshareholders plan to oppose a merger with grocer Albertsons that they believe undervalues the struggling pharmacy chain.

Closed Deals:

  1. The acquisition of Dynegy (DYN) by Vistra Energy (VST) on April 9, 2018. It took 161 days for this deal to be completed.
  2. The acquisition of Ply Gem Holdings (PGEM) by  Clayton, Dubilier & Rice on April 12, 2018. It took 71 days for this deal to be completed.
  3. The acquisition of Bay Bancorp (BYBK) by Old Line Bancshares (OLBK) on April 13, 2018. It took 198 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $2.73 07/01/2018 98.90% 474.99%
AKRX 04/24/2017 Fresenius Kabi (N/A) $34.00 $18.43 04/30/2018 84.48% 2202.56%
RAD 02/18/2018 Albertsons Companies, Inc. (N/A) $2.50 $1.68 09/30/2018 48.81% 106.68%
ESRX 03/08/2018 Cigna Corporation (CI) $90.53 $71.62 12/31/2018 26.40% 37.21%
SCG 01/03/2018 Dominion Energy, Inc. (D) $42.78 $35.9 12/31/2018 19.15% 26.99%
GGP 03/26/2018 Brookfield Property Partners (BPY) $23.50 $19.8 07/31/2018 18.69% 64.35%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $25.77 09/30/2018 16.41% 35.88%
ROSG 03/05/2018 Genoptix, Inc. (N/A) $0.43 $0.370 06/30/2018 16.22% 78.92%
AET 12/03/2017 CVS Health (CVS) $198.14 $172.93 12/31/2018 14.58% 20.55%
STC 03/16/2018 Fidelity National Financial, Inc. (FNF) $49.53 $43.49 06/30/2019 13.89% 11.52%

List of all pending deals:

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

Disclaimer: I hold positions in GGP Inc. (GGP), magicJack VocalTec (CALL), Monsanto (MON), Rite Aid (RAD) and Southcross Energy Partners (SXE). 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.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria

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