Merger Arbitrage Mondays – July 2, 2018
Merger activity decreased last week with six new deals announced. The second of the three semiconductor deals that had large spreads because of concerns that Chinese regulators might not approve the deal, received Chinese regulatory approval last week. The acquisition of Cavium (CAVM) by Marvell (MRVL) saw the spread on the deal collapse to just 0.17%. The spread on the deal was as high as 17.49% on May 11th. The Microsemi acquisition closed on May 29th and that only leaves the acquisition of NXP Semiconductors (NXPI) by Qualcomm, which had a wide spread of 16.68% as of last Friday.
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 Education Realty Trust (EDR) by Greystar Student Housing Growth and Income Fund for $4.6 billion or $41.50 per share in cash. We added EDR as a potential deal to the Deals in the Works section on June 1, 2018 and the price after the news of the potential deal came out was $37.94. Under the Merger Agreement, EdR will discontinue its regular quarterly dividends. However, if the transaction is completed after October 15, 2018, EDR stockholders will receive a per diem amount of approximately $0.00435 per share for each day from October 15, 2018 until (but not including) the closing date.
- The acquisition of Xerium Technologies (XRM) by Andritz AG (ANDR) for $1.27 billion or $13.50 per share in cash.
- The acquisition of Pinnacle Foods (PF) by Conagra Brands (CAG) for $10.9 billion. Under the terms of the agreement, each share of Pinnacle Foods common stock will be converted into the right to receive $43.11 per share in cash and 0.6494 shares of Conagra Brands common stock. We added PF as a potential deal to the Deals in the Works section on May 31, 2017 and the price after the news of the potential deal came out was $60.68.
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