Merger Arbitrage Mondays – March 11, 2019
Merger activity remained steady last week with two new deals announced and five 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 three new deals announced in the Deals in the Works section.
Deal Statistics:
| Total Number of Deals Closed in 2019 | 49 |
| Total Number of Deals Not Completed in 2019 | 1 |
| Total Number of Pending Deals |
| Cash Deals | 28 |
| Stock Deals | 19 |
| Stock & Cash Deals | 11 |
| Special Conditions | 5 |
| Total Number of Pending Deals | 63 |
| Total Deal Size | $691.05 billion |
New Deals:
- The acquisition of Bluegreen Vacations Corporation (BXG) by BBX Capital Corporation (BBX) for $1.99 billion or $16.00 per share in cash.
- The acquisition of Nightstar Therapeutics (NITE) by Biogen (BIIB) for $567.68 million or $25.50 per share in cash.
Deal Updates:
- On March 5, 2019, Sinclair Broadcast Group, (SBGI) noted that the Federal Communications Commission released the decision of its Administrative Law Judge dismissing with prejudice the July 19, 2018 Hearing Designation Order related to Sinclair’s terminated acquisition of 100% of the issued and outstanding shares of Tribune Media Company (TRCO).
- On March 6, 2019, Clementia Pharmaceuticals (CMTA) announced that it has obtained an interim order from the Québec Superior Court in connection with the previously announced plan of arrangement with Ipsen.
- On March 6, 2019, Bristol-Myers Squibb (BMY) urged investors to support its purchase of Celgene (CELG) amid public resistance from top shareholders.
- On March 7, 2019, Fifth Third Bancorp (FITB) and MB Financial (MBFI) jointly announced that Fifth Third Bancorp has received all necessary regulatory approvals for completion of the transactions.
- On March 7, 2019, American National Bankshares (AMNB) and HomeTown Bankshares Corporation (HMTA) jointly announced the receipt of regulatory approvals from the Office of the Comptroller of the Currency, the Federal Reserve Bank of Richmond, and the Virginia State Corporation Commission to move forward with the proposed merger of HomeTown with and into American.
- On March 8, 2019, The Federal Communications Commission paused its months-long review of the proposed merger between Sprint (S) and T-Mobile U.S. (TMUS) to examine what it called “significant new information”.
- On March 8, 2019, Entegris (ENTG) and Versum Materials (VSM) highlighted additional benefits from their planned all-share merger, while rival bidder Merck KGaA said it had brought in Goldman Sachs to help with its counter offer.
Closed Deals:
- The acquisition of Sparton Corporation (SPA) by an affiliate of Cerberus Capital Management on March 4, 2019. It took 82 days for this deal to be completed.
- The acquisition of Nevsun Resources (NSU) by Zijin Mining Group on March 8, 2019. It took 184 days for this deal to be completed.
- The acquisition of Civitas Solutions (CIVI) by funds advised by Centerbridge Partners on March 8, 2019. It took 80 days for this deal to be completed.
- The acquisition of Asterias Biotherapeutics (AST) by BioTime (BTX) on March 8, 2019. It took 120 days for this deal to be completed.
- The acquisition of Nutrisystem (NTRI) by Tivity Health (TVTY) on March 8, 2019. It took 88 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| INUV | 11/05/2018 | ConversionPoint Technologies, Inc. (N/A) | $2.22 | $1.28 | 06/30/2019 | 73.44% | 241.48% |
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $3.63 | 03/15/2019 | 49.59% | 4524.79% |
| CELG | 01/03/2019 | Bristol-Myers Squibb Company (BMY) | $101.39 | $84.46 | 09/30/2019 | 20.04% | 36.04% |
| S | 04/29/2018 | T-Mobile US, Inc. (TMUS) | $7.25 | $6.10 | 06/30/2019 | 18.78% | 61.77% |
| STC | 03/19/2018 | Fidelity National Financial, Inc. (FNF) | $47.66 | $42.69 | 06/30/2019 | 11.64% | 38.29% |
| PACB | 11/01/2018 | Illumina, Inc. (ILMN) | $8.00 | $7.29 | 06/30/2019 | 9.74% | 32.03% |
| LKSD | 10/31/2018 | Quad/Graphics, Inc. (QUAD) | $7.64 | $7.16 | 06/30/2019 | 6.67% | 21.93% |
| RHT | 10/28/2018 | IBM (IBM) | $190.00 | $180.71 | 12/31/2019 | 5.14% | 6.36% |
| GPIC | 11/27/2018 | Angel Holdings Godo Kaisha (N/A) | $13.75 | $13.2 | 06/30/2019 | 4.17% | 13.70% |
| TISA | 02/04/2019 | Thoma Bravo (N/A) | $0.86 | $0.8302 | 03/31/2019 | 3.59% | 65.51% |
List of all pending deals:
The list of all pending deals is only available to InsideArbitrage Premium and Plus members.
Disclaimer: I hold a long positions in Celgene (CELG), Bristol-Myers Squibb (BMY) and Finisar (FNSR). 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
