Merger Arbitrage Mondays – New Higher Offer For Anadarko

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

Deal Statistics:

Total Number of Deals Closed in 2019 74
Total Number of Deals Not Completed in 2019 4
Total Number of Pending Deals
Cash Deals 29
Stock Deals 16
Stock & Cash Deals 11
Special Conditions 3
Total Number of Pending Deals 59
Total Deal Size $860.16 billion

New Deals:

  1. The acquisition of MidSouth Bancorp (MSL) by Hancock Whitney Corporation (HWC) for $101.79 million in an all stock deal. Under the terms of the agreement, each share of MidSouth Bancorp, Inc. common stock will convert to the right to receive 0.2952 shares of Hancock Whitney Corporation common stock.

Deal Updates:

  1. On April 26, 2019, The Federal Trade Commission, granted early termination of the Hart-Scott-Rodino Act waiting period for the review of the deal agreed to by Fidelity National Information Services (FIS) and Worldpay (WP).
  2. On April 29, 2019, Genworth Financial (GNW) and China Oceanwide Holdings announced that they have agreed to a tenth waiver and agreement of each party’s right to terminate the previously announced merger agreement. The tenth waiver and agreement extends the previous deadline of April 30, 2019 to June 30, 2019 in consideration of pending regulatory reviews.
  3. April 29, 2019: According to Reuters, Makan Delrahim, the head of the U.S. Justice Department’s Antitrust Division, said that there had been no decision made on whether to approve the merger of Sprint (S) and T-Mobile (TMUS) but that meetings on the matter continued. Separately, the two companies announced that they had extended the deadline for completing the deal to July 29.
  4. April 30, 2019: According to Bloomberg, Warren Buffett’s Berkshire Hathaway disclosed plans to inject $10 billion into Occidental (OXY) in exchange for preferred stock and warrants. The bombshell landed in the midst of Anadarko (APC)  board deliberations about whether Occidental’s offer is superior to a lower but already agreed-to deal with Chevron (CVX).
  5. On May 2, 2019, Bemis Company (BMS) announced that its shareholders voted to approve Bemis’ combination with Amcor Limited (AMC.AX).
  6. On May 3, 2019, Chemical Financial Corporation (CHFC) and TCF Financial Corporation (TCF) jointly announced that each company will hold its special meeting of shareholders on June 7, 2019, for the companies’ respective shareholders to consider and vote on the proposals related to the definitive merger agreement.
  7. On May 5, 2019, Occidental (OXYrevised its offer to buy Anadarko (APC). Occidental is still offering $76 a share for each share of Anadarko, the same as its bid from April, but more of it is now in cash. Occidental’s new bid is for $59 in cash and 0.2934 shares of Occidental common stock for each Anadarko share. Its previous bid was $38 in cash and 0.6094 shares of Occidental stock. Occidental also said that Total has agreed to buy Anadarko’s African assets for $8.8 billion if the takeover happens.

Closed Deals:

  1. The acquisition of Gaming Partners International Corporation (GPIC) by Angel Holdings Godo Kaisha on May 1, 2019. It took 155 days for this deal to be completed.
  2. The acquisition of Hamilton Bancorp (HBK) by Orrstown Financial Services (ORRF) on May 1, 2019. It took 190 days for this deal to be completed.
  3. The acquisition of The Ultimate Software Group (ULTI) by Hellman & Friedman on May 3, 2019. It took 88 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 $1.44 06/30/2019 54.17% 359.47%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.88 06/30/2019 39.95% 265.11%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.67 $5.8 07/29/2019 32.16% 139.75%
STC 03/19/2018 Fidelity National Financial, Inc. (FNF) $50.39 $42.78 06/30/2019 17.79% 118.08%
WCG 03/27/2019 Centene Corporation (CNC) $297.75 $261.5 06/30/2020 13.86% 12.02%
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $7.41 06/30/2019 7.96% 52.84%
ONCE 02/25/2019 Roche Holding AG (RHHBY) $114.50 $108.03 06/30/2019 5.99% 39.75%
LKSD 10/31/2018 Quad/Graphics, Inc. (QUAD) $6.97 $6.66 06/30/2019 4.64% 30.77%
BXG 03/04/2019 BBX Capital Corporation (BBX) $16.00 $15.37 05/15/2019 4.10% 166.23%
RHT 10/28/2018 IBM (IBM) $190.00 $182.59 12/31/2019 4.06% 6.20%

List of all pending deals:

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

Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing
Date
Profit Annu.
Profit
+ INUV 11/05/2018 ConversionPoint Technologies, Inc. (N/A) Special Conditions $75.5 million $2.22 $1.44 469,980 06/30/2019 54.17% 359.47%
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $3.88 3,262,542 06/30/2019 39.95% 265.11%
+ S 04/29/2018 T-Mobile US, Inc. (TMUS) All Stock $59 billion $7.67 $5.8 20,353,599 07/29/2019 32.16% 139.75%
+ STC 03/19/2018 Fidelity National Financial, Inc. (FNF) Cash Plus Stock $1.2 billion $50.39 $42.78 61,873 06/30/2019 17.79% 118.08%
+ WCG 03/27/2019 Centene Corporation (CNC) Cash Plus Stock 17.3 billion $297.75 $261.5 938,718 06/30/2020 13.86% 12.02%
+ PACB 11/01/2018 Illumina, Inc. (ILMN) All Cash $742.9 million $8.00 $7.41 2,570,102 06/30/2019 7.96% 52.84%
+ ONCE 02/25/2019 Roche Holding AG (RHHBY) All Cash $4.8 billion $114.50 $108.03 578,134 06/30/2019 5.99% 39.75%
+ LKSD 10/31/2018 Quad/Graphics, Inc. (QUAD) All Stock $1.4 billion $6.97 $6.66 355,057 06/30/2019 4.64% 30.77%
+ BXG 03/04/2019 BBX Capital Corporation (BBX) All Cash $1.99 billion $16.00 $15.37 49,259 05/15/2019 4.10% 166.23%
+ RHT 10/28/2018 IBM (IBM) All Cash $34 billion $190.00 $182.59 1,392,126 12/31/2019 4.06% 6.20%
+ MLNX 03/11/2019 NVIDIA Corporation (NVDA) All Cash $6.9 billion $125.00 $120.52 327,699 12/31/2019 3.72% 5.68%
+ UQM 01/21/2019 Danfoss Power Solutions (US) Company (N/A) All Cash $100 million $1.71 $1.66 94,203 06/30/2019 3.01% 19.99%
+ PNTR 03/15/2019 I.D. Systems, Inc. (IDSY) Cash Plus Stock $140 million $15.81 $15.38 8,101 06/30/2019 2.82% 18.73%
+ MXWL 02/04/2019 Tesla, Inc. (TSLA) Special Conditions $231 million $4.75 $4.62 3,248,398 06/30/2019 2.81% 18.67%
+ HFBC 01/07/2019 First Financial Corporation (THFF) Special Conditions $128.3 million $20.05 $19.55 1,875 06/30/2019 2.56% 16.97%
+ WBC 03/28/2019 ZF Friedrichshafen AG (N/A) All Cash $7.29 billion $136.50 $133.16 459,235 03/31/2020 2.51% 2.77%
+ ENFC 04/24/2019 First Citizens BancShares, Inc. (FCNCA) All Cash $219.8 million $30.18 $29.5 308,804 12/31/2019 2.31% 3.52%
+ FDC 01/16/2019 Fiserv, Inc. (FISV) All Stock $22 billion $26.28 $25.77 5,715,326 12/31/2019 1.99% 3.04%
+ ADSW 04/15/2019 Waste Management, Inc. (WM) All Cash $4.9 billion $33.15 $32.55 1,305,940 03/31/2020 1.84% 2.04%
+ MSL 04/30/2019 Hancock Whitney Corporation (HWC) All Stock $101.79 million $13.13 $12.89 159,093 09/30/2019 1.84% 4.58%
+ CZFC 02/21/2019 German American Bancorp, Inc. (GABC) Cash Plus Stock $69.51 million $25.80 $25.34 9,457 09/30/2019 1.81% 4.50%
+ CELG 01/03/2019 Bristol-Myers Squibb Company (BMY) Cash Plus Stock $74 billion $98.62 $96.88 5,492,901 09/30/2019 1.80% 4.46%
+ VSM 04/12/2019 Merck KGaA (N/A) All Cash $6.4 billion $53.00 $52.28 1,303,124 12/31/2019 1.38% 2.10%
+ CTWS 03/15/2018 SJW Group (SJW) All Cash $1.06 billion $70.00 $69.13 24,119 06/30/2019 1.26% 8.35%
+ STI 02/07/2019 BB&T Corporation (BBT) All Stock $66 billion $66.01 $65.35 1,415,605 12/31/2019 1.00% 1.53%
+ FNSR 11/09/2018 II-VI Incorporated (IIVI) Cash Plus Stock $2.15 billion $24.56 $24.32 1,008,688 09/30/2019 0.99% 2.46%
+ SIFI 12/11/2018 Berkshire Hills Bancorp, Inc. (BHLB) All Stock $180 million $14.60 $14.46 53,949 06/30/2019 0.98% 6.50%
+ AMID 03/18/2019 ArcLight Energy Partners Fund (N/A) All Cash $2.03 billion $5.25 $5.2 62,281 06/30/2019 0.96% 6.38%
+ UWN 09/18/2018 Maverick Casinos, LLC (N/A) All Cash $40.19 million $2.50 $2.478 32,526 06/30/2019 0.89% 5.89%
+ WP 03/18/2019 Fidelity National Information Services, Inc. (FIS) Cash Plus Stock $43 billion $120.36 $119.35 1,805,233 12/31/2019 0.85% 1.30%
+ BRSS 04/10/2019 Wieland-Werke AG (N/A) All Cash $1.2 billion $44.00 $43.65 473,571 12/31/2019 0.80% 1.22%
+ HF 03/19/2019 Jones Lang LaSalle Incorporated (JLL) Cash Plus Stock $2 billion $47.58 $47.23 664,961 09/30/2019 0.75% 1.86%
+ TCF 01/28/2019 Chemical Financial Corporation (CHFC) All Stock $5 billion $22.72 $22.55 947,784 10/31/2019 0.74% 1.52%
+ TISA 02/04/2019 Thoma Bravo (N/A) All Cash $38.89 million $0.86 $0.854 117,866 04/30/2019 0.70% 0.00%
+ LEXEA 04/16/2019 Expedia Group, Inc. (EXPE) All Stock $19.4 billion $45.76 $45.44 816,835 06/30/2019 0.70% 4.62%
+ LXFT 01/07/2019 DXC Technology Company (DXC) All Cash $2 billion $59.00 $58.68 191,300 06/30/2019 0.55% 3.62%
+ TRCO 12/03/2018 Nexstar Media Group, Inc. (NXST) All Cash $6.4 billion $46.50 $46.26 484,594 09/30/2019 0.52% 1.29%
+ LLL 10/14/2018 Harris Corporation (HRS) All Stock $18.42 billion $231.26 $230.09 923,317 06/30/2019 0.51% 3.37%
+ TIER 03/25/2019 Cousins Properties Incorporated (CUZ) All Stock $2.38 billion $28.28 $28.17 430,868 09/30/2019 0.39% 0.97%
+ ATTU 02/21/2019 Qlik (N/A) All Cash $560 million $23.50 $23.42 405,699 06/30/2019 0.34% 2.27%
+ TVPT 12/10/2018 affiliates of Siris Capital Group, LLC (N/A) All Cash $4.4 billion $15.75 $15.7 1,236,165 06/30/2019 0.32% 2.11%
+ MBTF 10/10/2018 First Merchants Corporation (FRME) All Stock $290.9 million $10.41 $10.38 174,914 06/30/2019 0.30% 2.01%
+ PETX 04/26/2019 Elanco Animal Health Incorporated (ELAN) All Stock $245 million $4.76 $4.75 1,459,888 12/31/2019 0.18% 0.27%
+ QTNA 03/27/2019 ON Semiconductor Corporation (ON) All Cash $936 million $24.50 $24.46 550,736 12/31/2019 0.16% 0.25%
+ NAVG 08/22/2018 The Hartford Financial Services Group, Inc. (HIG) All Cash $2.1 billion $70.00 $69.93 138,758 06/30/2019 0.10% 0.66%
+ LION 12/17/2018 Ameris Bancorp (ABCB) All Stock $750.7 million $30.06 $30.04 77,220 06/30/2019 0.08% 0.53%
+ NITE 03/04/2019 Biogen Inc. (BIIB) All Cash $567.68 million $25.50 $25.5 23,115 06/30/2019 0.00% 0.00%
+ LABL 02/25/2019 affiliate of Platinum Equity LLC (N/A) All Cash $2.5 billion $50.00 $50.03 260,257 09/30/2019 -0.06% -0.15%
+ FRSH 04/11/2019 MTY Food Group Inc. (N/A) All Cash $190 million $6.45 $6.46 42,837 06/30/2019 -0.15% -1.03%
+ MOGO 04/15/2019 Difference Capital Financial Inc. (DCF.TO) All Stock $156 million $3.64 $3.65 11,877 06/30/2019 -0.17% -1.11%
+ HIFR 10/18/2018 Oncor Electric Delivery Company LLC (N/A) All Cash $2.215 billion $21.00 $21.06 392,845 06/30/2019 -0.28% -1.89%
+ KEYW 04/22/2019 Jacobs Engineering Group Inc. (JEC) All Cash $815 million $11.25 $11.34 818,060 08/31/2019 -0.79% -2.48%
+ EFII 04/15/2019 an affiliate of Siris Capital Group, LLC (N/A) All Cash $1.7 billion $37.00 $37.3 943,915 09/30/2019 -0.80% -2.00%
+ SFS 04/16/2019 Apollo Global Management, LLC (APO) All Cash $1.23 billion $6.50 $6.57 360,644 09/30/2019 -1.07% -2.65%
+ BMS 08/06/2018 Amcor Limited (AMC.AX) All Stock $6.03 billion $58.07 $59.53 1,545,371 05/15/2019 -2.45% -99.49%
+ SXCP 02/05/2019 SunCoke Energy, Inc. (SXC) All Stock $1.52 billion $12.43 $12.92 370,236 08/31/2019 -3.78% -11.78%
+ MRT 01/02/2019 Omega Healthcare Investors, Inc. (OHI) Cash Plus Stock $600 million $10.40 $10.82 203,314 06/30/2019 -3.91% -25.97%
+ APU 04/02/2019 UGI Corporation (UGI) Cash Plus Stock $6.66 billion $34.99 $36.43 689,880 09/30/2019 -3.97% -9.85%
+ APC 04/12/2019 Chevron Corporation (CVX) Cash Plus Stock $50 billion $61.62 $72.72 9,770,749 12/31/2019 -15.26% -23.31%

Disclaimer: I hold long positions in Red Hat (RHT), 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

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