Merger activity remained steady last week with four new deals announced and two active deals completed.
Two of the four new deals announced were potential deals in the work. On September 28, 2020, Endurance International Group Holdings (EIGI) had announced that it was considering strategic options, including a possible sale. On November 2, 2020, the company agreed to be acquired by Clearlake Capital Group at a 79% premium over Endurance’s unaffected share price of $5.30, as of September 25, 2020, the last trading day prior to media speculation about a potential transaction.
On January 30, 2020, Navistar International Corporation (NAV) had confirmed that it had received an unsolicited proposal from TRATON SE regarding a potential transaction to acquire the company. TRATON is Volkswagen’s truck manufacturing subsidiary. This potential deal became successful on November 7, 2020 after the two companies entered into a definitive merger agreement. I came across Navistar after a cluster of insider purchases by Carl Icahn and his protege Dr. Mark Rachesky in 2012. Over the last 8 years, they kept adding to their stakes and a number of other insiders exercised options without selling them. The final deal price came below what Carl Icahn was hoping for and also well below what Dr. Rachesky was purported to hold out for.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were no new deals announced in the Deals in the Works section last week.
Weekly Spread Changes:
The table below shows weekly spread changes between October 30, 2020, and November 6, 2020.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
WTRE | 34.49 | Arch Capital Group Ltd. (ACGL) | 31.55 | 1.48% | -13.61% | 15.09% | All Cash |
NEWA | 3.42 | Crouching Tiger Holding Limited (N/A) | 6.73% | 0.27% | 6.46% | All Cash | |
CCR | 2.91 | CONSOL Energy Inc. (CEIX) | 4.04 | 1.35% | -3.26% | 4.61% | All Stock |
CBMG | 17.41 | CBMG management (N/A) | 13.44% | 9.66% | 3.78% | All Cash | |
FBSS | 15.66 | Virginia National Bankshares Corporation (VABK) | 24.24 | 4.48% | 1.49% | 2.99% | All Stock |
EIDX | 72.71 | BridgeBio Pharma, Inc. (BBIO) | 39.375 | 0.76% | 3.30% | -2.54% | Special Conditions |
TIF | 131.15 | LVMH Moët Hennessy Louis Vuitton SE (LVMUY) | 103.74 | 0.27% | 3.18% | -2.91% | All Cash |
MCEP | 2.11 | Contango Oil & Gas Company (MCF) | 1.2 | -0.47% | 2.70% | -3.17% | All Stock |
GNW | 4.23 | China Oceanwide Holdings Group Co., Ltd. (N/A) | 28.37% | 38.17% | -9.80% | All Cash | |
LINX | 6.91 | StoneCo Ltd. (STNE) | 62.22 | -9.55% | 5.29% | -14.84% | Special Conditions |
Deal Statistics:
Total Number of Deals Closed in 2020 | 118 |
Total Number of Deals Not Completed in 2020 | 16 |
Total Number of Pending Deals | |
Cash Deals | 36 |
Stock Deals | 17 |
Stock & Cash Deals | 3 |
Special Conditions | 3 |
Total Number of Pending Deals | 59 |
Aggregate Deal Consideration | $784.98 billion |
New Deals:
Deal Updates:
Closed Deals:
Top 10 deals with largest spreads:
Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
---|---|---|---|---|---|---|---|
GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.2300 | 11/30/2020 | 28.37% | 470.66% |
GSUM | 10/01/2020 | Gridsum Corporation (N/A) | $2.00 | $1.76 | 03/31/2021 | 13.64% | 34.81% |
CBMG | 08/12/2020 | CBMG management (N/A) | $19.75 | $17.41 | 12/31/2020 | 13.44% | 92.56% |
IPHI | 10/29/2020 | Marvell Technology Group Ltd. (MRVL) | $170.84 | $154.67 | 12/31/2021 | 10.45% | 9.13% |
XLNX | 10/27/2020 | Advanced Micro Devices, Inc. (AMD) | $148.01 | $134.12 | 12/31/2021 | 10.35% | 9.04% |
DOYU | 10/12/2020 | HUYA Inc. (HUYA) | $16.06 | $14.91 | 06/30/2021 | 7.71% | 12.03% |
WLTW | 03/09/2020 | Aon plc (AON) | $205.58 | $192.17 | 06/30/2021 | 6.98% | 10.88% |
NEWA | 10/02/2020 | Crouching Tiger Holding Limited (N/A) | $3.65 | $3.42 | 06/30/2021 | 6.73% | 10.49% |
MXIM | 07/13/2020 | Analog Devices, Inc. (ADI) | $84.11 | $79.48 | 06/30/2021 | 5.82% | 9.08% |
FBSS | 10/01/2020 | Virginia National Bankshares Corporation (VABK) | $16.36 | $15.66 | 06/30/2021 | 4.48% | 6.99% |
List of all pending deals:
Disclaimer: I have a long position in Otelco (OTEL). 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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