Merger Arbitrage Mondays – May 7, 2018
Merger activity decreased last week with six new deals announced and one pending deal 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 | 52 |
| Total Number of Deals Not Completed in 2018 | 5 |
| Total Number of Pending Deals |
| Cash Deals | 43 |
| Stock Deals | 13 |
| Stock & Cash Deals | 17 |
| Collars | 1 |
| Special Conditions | 8 |
| Total Number of Pending Deals | 81 |
| Total Deal Size | $858.2 billion |
New Deals:
- The acquisition of Andeavor (ANDV) by Marathon Petroleum (MPC) for $35.6 billion in a cash or stock deal. Under the terms of the agreement, ANDV shareholders will have the option to choose 1.87 shares of MPC stock, or $152.27 in cash subject to a proration mechanism that will result in 15 percent of ANDV’s fully diluted shares receiving cash consideration.
- The acquisition of SteadyMed (STDY) by United Therapeutics Corporation (UTHR) for $216 million. Under the terms of the agreement, shareholders of SteadyMed will receive $4.46 per share in cash at closing and an additional $2.63 per share in cash upon the achievement of a milestone related to the commercialization of Trevyent®.
- The acquisition of Financial Engines (FNGN) by Hellman & Friedman for $3.02 billion or $45.00 per share in cash.
- The acquisition of ILG (ILG) by Marriott Vacations Worldwide Corporation (VAC) for $5.44 billion in a cash plus stock deal. Under the terms of the merger agreement, ILG shareholders will receive $14.75 in cash and 0.165 shares of MVW common stock for each ILG share. We added ILG as a potential deal to the Deals in the Works section on March 22, 2018 and the price after the news of the potential deal came out was $32.23.
- The acquisition of RPX Corporation (RPXC) by HGGC for $555 million or $10.50 per share in cash. We added RPXC as a potential deal to the Deals in the Works section on January 24, 2018 and the price after the news of the potential deal came out was $13.87.
- On May 1, 2018, KLX Inc. (KLXI) announced its intention to sell its Aerospace Solutions Group business to The Boeing Company (BA) and to spin-off to KLX shareholders its Energy Services Group business. We have added this deal to the Spinoffs section instead of the Merger Arbitrage Tool.
- The acquisition of MTGE Investment (MTGE) by Annaly Capital Management (NLY) for $900 million in a cash plus stock deal. Under the terms of the agreement, MTGE shareholders may elect to receive: (a) $9.82 in cash and 0.9519 shares of Annaly common stock; (b) $19.65 in cash; or (c) 1.9037 shares of Annaly common stock. MTGE shareholders who elect the Cash Consideration Option or Stock Consideration Option will be subject to proration, in each of the exchange offer and the subsequent second step merger, so that the aggregate consideration will consist of approximately 50% of Annaly’s common stock and approximately 50% in cash.
Deal Updates:
- On April 30, 2018, Analogic Corporation (ALOG) announced that it has received notice from the U.S. Federal Trade Commission that early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended , was granted in connection with the pending acquisition of Analogic by an affiliate of Altaris Capital Partners.
- On April 30, 2018, SJW Group (SJW) and Connecticut Water Service (CTWS) 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 the companies’ merger of equals.
- On May 1, 2018, Novartis AG (NVS) announced that the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 applicable to Novartis` cash tender offer for AveXis (AVXS) has expired.
- On May 2, 2018, McDermott International (MDR) shareholders approved the merger with Chicago Bridge & Iron (CBI).
- On May 4, 2018, U.S. aerospace and industrial company United Technologies (UTX) secured conditional EU approval for its $23 billion bid for avionics maker Rockwell Collins (COL).
Closed Deals:
- The acquisition of MuleSoft (MULE) by salesforce.com (CRM) on May 2, 2018. It took 43 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| AKRX | 04/24/2017 | Fresenius Kabi (N/A) | $34.00 | $11.74 | 06/30/2018 | 189.61% | 1281.61% |
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $3.02 | 07/01/2018 | 79.80% | 529.59% |
| RAD | 02/18/2018 | Albertsons Companies, Inc. (N/A) | $2.50 | $1.63 | 09/30/2018 | 53.37% | 133.44% |
| ESRX | 03/08/2018 | Cigna Corporation (CI) | $90.41 | $70.22 | 12/31/2018 | 28.76% | 44.10% |
| NXPI | 10/27/2016 | QUALCOMM Incorporated (QCOM) | $127.50 | $100.28 | 05/31/2018 | 27.14% | 412.81% |
| SCG | 01/03/2018 | Dominion Energy, Inc. (D) | $43.87 | $36.5 | 12/31/2018 | 20.18% | 30.95% |
| GGP | 03/26/2018 | Brookfield Property Partners (BPY) | $23.50 | $19.78 | 07/31/2018 | 18.81% | 80.76% |
| STC | 03/16/2018 | Fidelity National Financial, Inc. (FNF) | $49.39 | $41.81 | 06/30/2019 | 18.13% | 15.79% |
| AET | 12/03/2017 | CVS Health (CVS) | $197.87 | $172.26 | 12/31/2018 | 14.86% | 22.80% |
| CAVM | 11/20/2017 | Marvell Technology Group Ltd. (MRVL) | $86.23 | $75.27 | 06/30/2018 | 14.57% | 98.45% |
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 WGL Holdings (WGL), AveXis (AVXS), 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.
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