Merger Arbitrage Mondays – March 4, 2019

Merger activity decreased last week with two new deals announced and six 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 two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2019 44
Total Number of Deals Not Completed in 2019 1
Total Number of Pending Deals
Cash Deals 29
Stock Deals 20
Stock & Cash Deals 12
Special Conditions 5
Total Number of Pending Deals 66
Total Deal Size $688.49 billion

New Deals:

  1. The acquisition of Clementia Pharmaceuticals (CMTA) by Ipsen for $1.31 billion. Under the terms of the agreement, shareholders of Clementia Pharmaceuticals will receive $25.00 per share in cash upfront plus deferred payments in the form of a contingent value right (CVR) of $6.00 per share upon FDA acceptance of the NDA filing for the late-stage drug palovarotene.
  2. The acquisition of Multi-Color Corporation (LABL) by an affiliate of Platinum Equity for $2.5 billion or $50.00 per share in cash.

Deal Updates:

  1. On February 25, 2019, LSC Communications (LKSD) announced that its stockholders voted to adopt the merger agreement and approve the previously announced combination with Quad/Graphics (QUAD).
  2. On February 26, 2019, L3 Technologies (LLL) announced that it has set a date for a special meeting of its stockholders to consider and vote on the proposed merger with Harris Corporation (HRS) . The special meeting will be held on April 4, 2019.
  3. February 28, 2019: According to Bloomberg, activist investor Starboard Value said it will vote against the record pharmaceutical merger of Bristol-Myers Squibb (BMY) and Celgene (CELG), launching a shareholder campaign that could gather dissidents who want to block the deal.
  4. On March 1, 2019, Sparton Corporation (SPA) announced that, the shareholders of Sparton approved the proposed acquisition of Sparton by Sparton Parent, an affiliate of Cerberus Capital Management.
  5. On March 1, 2019, Versum Materials (VSM) announced that its Board of Directors has rejected Merck KGaA’s unsolicited and non-binding proposal, received on February 27, 2019, to acquire Versum for $48 per share in cash.
  6. On March 1, 2019, Regulator CADE said that Walt Disney (DISaccepted a demand by Brazil’s antitrust regulator that it sell the local operator of the Fox Sports channel to win approval of its takeover of Twenty-First Century Fox (FOX).

Closed Deals:

  1. The acquisition of Transmontaigne Partners (TLP) by ArcLight Energy Partners Fund on February 26, 2019. It took 92 days for this deal to be completed.
  2. The acquisition of Western Gas Partners (WES) by Western Gas Equity Partners (WGP) on February 28, 2019. It took 112 days for this deal to be completed.
  3. The acquisition of Investment Technology Group (ITG) by Virtu Financial (VIRT) on March 1, 2019. It took 114 days for this deal to be completed.
  4. The acquisition of Resolute Energy Corporation (REN) by Cimarex (XEC) on March 1, 2019. It took 102 days for this deal to be completed.
  5. The acquisition of Beneficial Bancorp (BNCL) by WSFS Financial Corporation (WSFS) on March 1, 2019. It took 205 days for this deal to be completed.
  6. The acquisition of Nexeo Solutions (NXEO) by Univar (UNVR) on March 1, 2019. It took 165 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
INUV 11/05/2018 ConversionPoint Technologies, Inc. (N/A) $2.22 $1.28 06/30/2019 73.44% 225.25%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.84 03/15/2019 41.41% 1259.44%
CELG 01/03/2019 Bristol-Myers Squibb Company (BMY) $103.22 $85.96 09/30/2019 20.08% 34.73%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.42 $6.4 06/30/2019 15.92% 48.85%
STC 03/19/2018 Fidelity National Financial, Inc. (FNF) $47.73 $42.96 06/30/2019 11.09% 34.02%
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $7.35 06/30/2019 8.84% 27.13%
LKSD 10/31/2018 Quad/Graphics, Inc. (QUAD) $8.97 $8.42 06/30/2019 6.52% 19.99%
GG 01/14/2019 Newmont Mining Corporation (NEM) $11.11 $10.55 12/31/2019 5.34% 6.43%
PGLC 09/30/2018 Americas Silver Corporation (USAS) $1.32 $1.25 03/31/2019 5.25% 68.41%
GPIC 11/27/2018 Angel Holdings Godo Kaisha (N/A) $13.75 $13.1 06/30/2019 4.96% 15.22%

List of all pending deals:

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

Disclaimer: I hold a long position in 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

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