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 (CBMannounced 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 (BMYannounced 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 (ILMNextended their merger deadline to March 31, 2020.
  9. On September 26, 2019, Callon Petroleum Company (CPEposted 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 (ABBVhave 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
Profit Annualized
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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