Merger Arbitrage Mondays – Presidio Receives A Rare Alternative Offer During Go-Shop Period

Merger activity decreased last week with one new deal announced and six 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	139
Total Number of Deals Not Completed in 2019	9
Total Number of Pending Deals
Cash Deals	42
Stock Deals	16
Stock & Cash Deals	11
Special Conditions	6
Total Number of Pending Deals	75
Aggregate Deal Consideration	$1.14 trillion

New Deals:

1. The acquisition of Arotech Corporation (ARTX) by Greenbriar Equity Group for $100 million or $3.00 per share in cash.

Deal Updates:

1. On September 23, 2019, Cambrex Corporation (CBM) announced the expiration of the 45-day “go shop” period under the previously announced Agreement and Plan of Merger.
2. On September 23, 2019, Bristol-Myers Squibb Company (BMY) announced the extension of the expiration date of the offers to exchange notes issued by Celgene Corporation (CELG). Bristol-Myers Squibb has extended the expiration date from September 30, 2019 to October 15, 2019.
3. On September 23, 2019, Condor Hospitality Trust (CDOR) announced that its shareholders approved the proposed acquisition by merger of Condor by NHT Operating Partnership.
4. On September 25, 2019, NorthStar Realty Europe (NRE) announced that its stockholders approved the proposed merger of NRE with and into Nighthawk Merger Sub, a wholly-owned subsidiary of a fund managed by AXA Investment Managers.
5. On September 25, 2019, the applicable waiting period under the HSR Act with respect to the acquisition of Gannett (GCI) by New Media Investment Group (NEWM) expired.
6. On September 26, 2019, Centene Corporation (CNC) and WellCare Health Plans (WCG) announced that, in connection with the previously announced merger agreement between Centene and WellCare, a subsidiary of WellCare has entered into a definitive agreement under which Anthem (ANTM) will acquire WellCare’s Missouri and Nebraska Medicaid plans.
7. On September 26, 2019, Presidio (PSDO) announced that in response to an alternative acquisition proposal received during the go-shop period, the Company and BC Partners agreed to an amendment to the Merger Agreement to increase the per-share consideration payable to Presidio’s stockholders to $16.60 per share from $16.00 per share.
8. On September 26, 2019, Pacific Biosciences (PACB) and Illumina (ILMN) extended their merger deadline to March 31, 2020.
9. On September 26, 2019, Callon Petroleum Company (CPE) posted Investor Materials to the Company’s website in connection with its pending acquisition of Carrizo Oil & Gas (CRZO). The Investor Materials detail the benefits of the combined company, which will enable Callon to accelerate its free cash flow, capital efficiency and deleveraging goals through an optimized model of large-scale development.
10. On September 26, 2019, the applicable waiting period under the HSR Act with respect to the acquisition of Acacia Communications (ACIA) by Cisco Systems (CSCO) expired.
11. On September 27, 2019, Allergan (AGN) announced that, as expected, Allergan and AbbVie (ABBV) have each received a Request for Additional Information and Documentary Material (Second Request) from the U.S. Federal Trade Commission (FTC) in connection with AbbVie’s pending acquisition of Allergan.

Closed Deals:

1. The acquisition of MidSouth Bancorp (MSL) by Hancock Whitney Corporation (HWC) on September 21, 2019. It took 144 days for this deal to be completed.
2. The acquisition of Peak Resorts (SKIS) by Vail Resorts (MTN) on September 24, 2019. It took 64 days for this deal to be completed.
3. The acquisition of Finisar Corporation (FNSR) by II-VI Incorporated (IIVI) on September 24, 2019. It took 319 days for this deal to be completed.
4. The acquisition of Shutterfly (SFLY) by Funds Managed by Affiliates of Apollo Global Management on September 25, 2019. It took 107 days for this deal to be completed.
5. The acquisition of Del Frisco’s Restaurant Group (DFRG) by L Catterton on September 25, 2019. It took 93 days for this deal to be completed.
6. The acquisition of Cray (CRAY) by Hewlett Packard Enterprise (HPE) on September 25, 2019. It took 131 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
PACB	11/01/2018	Illumina, Inc. (ILMN)	$8.00	$5.22	03/31/2020	53.26%	105.65%
S	04/29/2018	T-Mobile US, Inc. (TMUS)	$7.95	$6.05	01/31/2020	31.48%	92.66%
GNW	10/23/2016	China Oceanwide Holdings Group Co., Ltd. (N/A)	$5.43	$4.36	12/31/2019	24.54%	96.32%
ABDC	08/13/2019	Crescent Capital BDC, Inc. (N/A)	$11.02	$8.86	12/31/2019	24.38%	95.68%
ONCE	02/25/2019	Roche Holding AG (RHHBY)	$114.50	$97.41	04/30/2020	17.54%	29.92%
MLNX	03/11/2019	NVIDIA Corporation (NVDA)	$125.00	$110.73	12/31/2019	12.89%	50.58%
OHAI	08/01/2019	Portman Ridge Finance Corporation (PTMN)	$1.46	$1.32	12/31/2019	10.61%	41.63%
AGN	06/25/2019	AbbVie Inc. (ABBV)	$185.12	$168.25	03/31/2020	10.03%	19.89%
ACIA	07/08/2019	Cisco Systems, Inc. (CSCO)	$70.00	$64.61	07/31/2020	8.34%	9.95%
CRZO	07/15/2019	Callon Petroleum Company (CPE)	$9.12	$8.635	12/31/2019	5.65%	22.16%

List of all pending deals:

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

Disclaimer: I hold long positions in Mellanox Technologies (MLNX), Pacific Biosciences of California (PACB), Celgene (CELG) and Bristol-Myers Squibb (BMY). 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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