Merger Arbitrage Mondays – Kansas City Reconsiders Offer From Canadian Pacific

Merger activity decreased last week with two new deals announced, six deals completed and one deal terminated.

Another potential deal in the works materialized last week. We added Hill-Rom Holdings (HRC) as a potential on August 29, 2021, when The Wall Street Journal reported that Baxter International (BAX) was in advanced talks to acquire HRC. The price of Hill-Rom Holdings after this announcement came out was $145.78, representing a 9.69% premium to HRC’s price of $132.90 on August 27, 2021 before rumors about a potential deal emerged.

Founded in 1915, Hill-Rom Holdings has been a leading medical device innovator for over 100 years. Hillrom has acquired Allen Medical, Liko, Mortara, Trumpf Medical, Voalte, Welch Allyn, Breathe Technologies and Excel Medical in the past years to improve and integrate its innovations. Four days after the announcement of the potential deal, HRC entered into a definitive agreement to be acquired by Baxter International (BAX) for $156 per share in cash, representing a 26% premium to Hillrom’s closing stock price on July 27, 2021.

The bidding war for Kansas City Southern continued last week, after the Surface Transportation Board (STB), a U.S. federal agency that is charged with the economic regulation of various modes of surface transportation including freight rail, rejected the use of a voting trust between Canadian National Railway (CNI) and Kansas City Southern (KSU).

Canadian National Railway had set up the voting trust structure to get KSU shareholders on board by having the voting trust temporarily own KSU and allowing KSU shareholders to get $200 in cash and 1.129 shares of CN common stock even if STB rejected the deal. Rival Canadian Pacific (CP) stepped in and reaffirmed its approximately $300 cash and stock offer for KSU, which the board of directors of KSU said could reasonably be a superior proposal.

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 last week.

SPAC Arbitrage

There were 7 SPAC IPOs filed and 1 new SPAC business combination announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.

  1. Revelation Biosciences and Petra Acquisition (PAICentered into a definitive merger agreement for a business combination that will result in Revelation becoming a publicly traded company.

Weekly Spread Changes:

The table below shows weekly spread changes between August 27 and September 3, 2021.

Symbol Quote Acquiring
Company
Acquiring
Company Quote
Current
Spread
Last Week
Spread
Spread Change
Weekly
Deal
Type
MX 17.93 South Dearborn Limited (N/A) 61.74% 52.07% 9.67% All Cash
KSU 291.63 Canadian National Railway Company (CNI) 127.22 17.83% 10.23% 7.60% Cash Plus Stock
TRMT 5.66 RMR Mortgage Trust (RMRM) 10.97 3.01% -0.08% 3.09% Cash Plus Stock
NNA 4.01 Navios Maritime Partners L.P. (NMM) 31.43 -0.07% -2.80% 2.73% All Stock
FVCB 19.68 Blue Ridge Bankshares, Inc. (BRBS) 17.94 4.76% 3.21% 1.55% All Stock
SBBP 2.24 Xeris Pharmaceuticals, Inc. (XERS) 2.72 -4.80% -1.83% -2.97% All Stock
CLDB 27.2 Farmers National Banc Corp. (FMNB) 15.42 -0.79% 2.74% -3.53% All Stock
OSN 5.11 New Ossen Group Limited (N/A) -0.20% 3.45% -3.65% All Cash
AJRD 43.46 Lockheed Martin Corporation (LMT) 356 17.35% 23.07% -5.72% All Cash
FIVN 170.19 Zoom Video Communications, Inc. (ZM) 298.29 -3.02% 2.91% -5.93% All Stock

Deal Statistics:

Total Number of Deals Closed in 2021 128
Total Number of Deals Not Completed in 2021 9
Total Number of Pending Deals
Cash Deals 49
Stock Deals 35
Stock & Cash Deals 9
Special Conditions 3
Total Number of Pending Deals 96
Total Deal Size $872.57 billion

New Deals:

  1. The acquisition of DSP Group (DSPG) by Synaptics Incorporated (SYNA) for $339.78 million or $22.00 per share in cash.
  2. The acquisition of Hill-Rom Holdings (HRC) by Baxter International (BAX) for $12.4 billion or $156 per share in cash. We added HRC as a potential deal to the Deals in the Works section on August 29, 2021, and the price after the news of the potential deal came out was $145.78.

Deal Updates:

  1. On August 27, 2021, following informal discussions with the staff of the FTC, Sanofi (SNYvoluntarily withdrew and refiled the Premerger Notification and Report Form under the HSR Act relating to the Purchaser’s proposed acquisition of Translate Bio (TBIO), in order to provide the FTC with additional time to review the proposed acquisition and information recently provided to them. As a result, the waiting period will expire on September 13, 2021.
  2. On August 30, 2021, Magnachip Semiconductor (MX) said that the Committee on Foreign Investment in the U.S. (CFIUS) has identified national security risks with the sale to Wise Road and the deal is expected be referred to the President Biden for his decision.
  3. On August 30, 2021, Five9’s (FIVN) deal with Zoom Video Communications (ZM) widened after the Federal Communications Commission said it won’t allow a “streamlined” review of the transaction.
  4. On August 30, 2021, Cadence Bancorporation (CADE) announced that the Bank entered into separate settlements with the U.S. Department of Justice (“DOJ”) and the Office of the Comptroller of the Currency (“OCC”) to resolve historical allegations that it violated fair lending laws in Houston, Texas.
  5. On August 31, 2021, The Surface Transportation Board rejected a voting trust structure that would have allowed Canadian National Railway (CNI) to proceed with its proposed acquisition of Kansas City Southern (KSU).
  6. On August 31, 2021, Altabancorp (ALTA) announced that its stockholders, voted to adopt the previously announced merger agreement for the acquisition of the Company by Glacier Bancorp (GBCI).
  7. On August 31, 2021, Canadian Pacific Railway Limited (CP) submitted a letter to the board of directors of Kansas City Southern (KSUreaffirming CP’s offer to acquire all outstanding shares of KCS common stock for 2.884 CP common shares and $90 in cash for each share of KCS common stock.
  8. On September 2, 2021, CAI International (CAI) announced that its stockholders, voted to adopt the previously announced merger agreement for the acquisition of the Company by Mitsubishi HC Capital.
  9. On September 3, 2021, Kansas City Southern (KSU) announced that it has adjourned the Special Meeting of Stockholders for KCS stockholders to vote on the previously announced definitive merger agreement with CN (CNI) and other proposals September 24, 2021.
  10. On September 4, 2021, Kansas City Southern (KSU) announced that its Board of Directors has unanimously determined, after consultation with the Company’s outside legal and financial advisors, that the unsolicited proposal received from Canadian Pacific Railway Limited (CP) on August 31, 2021, to acquire KCS in a cash and stock transaction valued by CP at $300 per KCS share could reasonably be expected to lead to a “Company Superior Proposal” as defined in KCS’s merger agreement with CN (CNI).

Closed Deals:

  1. The acquisition of Proofpoint (PFPT) by Thoma Bravo on August 31, 2021. It took 127 days for this deal to be completed.
  2. The acquisition of QTS Realty Trust (QTS) by Blackstone (BX) on August 31, 2021. It took 85 days for this deal to be completed.
  3. The acquisition of ORBCOMM (ORBC) by GI Partners on September 1, 2021. It took 146 days for this deal to be completed.
  4. The acquisition of SharpSpring (SHSP) by Clearlake Capital Group on September 1, 2021. It took 71 days for this deal to be completed.
  5. The acquisition of Core-Mark Holding Company (CORE) by Performance Food Group Company (PFGC) on September 1, 2021. It took 106 days for this deal to be completed.
  6. The acquisition of Mackinac Financial Corporation (MFNC) by Nicolet Bankshares (NCBS) on September 3, 2021. It took 143 days for this deal to be completed.

Terminated Deals:

  1. On August 31, 2021, Equity Commonwealth (EQC) terminated the Merger Agreement because Monmouth’s (MNR) common shareholders failed to approve the merger of Monmouth with EQC.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
TEDU 04/30/2021 Kidedu Holdings Limited (N/A) $4.00 $1.51 09/30/2021 164.90% 2407.55%
MX 03/26/2021 South Dearborn Limited (N/A) $29.00 $17.93 12/31/2021 61.74% 192.61%
XLNX 10/27/2020 Advanced Micro Devices, Inc. (AMD) $189.44 $155.96 12/31/2021 21.46% 66.96%
KSU 05/21/2021 Canadian National Railway Company (CNI) $343.63 $291.63 12/31/2022 17.83% 13.50%
AJRD 12/20/2020 Lockheed Martin Corporation (LMT) $51.00 $43.46 12/31/2021 17.35% 54.12%
CHNG 01/06/2021 UnitedHealth Group Incorporated (UNH) $25.75 $22.12 12/31/2021 16.41% 51.20%
COHR 03/25/2021 II-VI Incorporated (IIVI) $275.96 $252.31 12/31/2021 9.37% 29.24%
SJR 03/15/2021 Rogers Communications Inc. (RCI) $32.40 $29.75 06/30/2022 8.91% 10.91%
MSON 07/29/2021 Bioventus Inc. (BVS) $28.00 $25.87 12/31/2021 8.23% 25.69%
SOLY 05/10/2021 Allergan Aesthetics (N/A) $22.60 $21.18 09/30/2021 6.70% 97.88%

List of all pending deals:

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

Target Announced
Date
Acquirer Deal
Type
Closing
Value
Deal
Price
Last
Price
Target Volume Estimated
Closing Date
Return Annualized
Return
+ TEDU 4/30/21 Kidedu Holdings Limited (N/A) All Cash $230.6 M $4.00 $1.51 710,127 9/30/21 164.90% 2507.86%
+ MX 3/26/21 South Dearborn Limited (N/A) All Cash $1.4 B $29.00 $17.93 320,988 12/31/21 61.74% 194.27%
+ XLNX 10/27/20 Advanced Micro Devices, Inc. (AMD) All Stock $33.43 B $189.44 $155.96 990,494 12/31/21 21.46% 67.54%
+ KSU 5/21/21 Canadian National Railway Company (CNI) Cash Plus Stock $33.6 B $343.63 $291.63 1,199,973 12/31/22 17.83% 13.53%
+ AJRD 12/20/20 Lockheed Martin Corporation (LMT) All Cash $3.79 B $51.00 $43.46 329,198 12/31/21 17.35% 54.59%
+ CHNG 1/06/21 UnitedHealth Group Incorporated (UNH) All Cash $13.28 B $25.75 $22.12 903,171 12/31/21 16.41% 51.64%
+ COHR 3/25/21 II-VI Incorporated (IIVI) Cash Plus Stock $6.84 B $275.96 $252.31 97,581 12/31/21 9.37% 29.49%
+ SJR 3/15/21 Rogers Communications Inc. (RCI) Special Conditions $26 B $32.40 $29.75 70,962 6/30/22 8.91% 10.95%
+ MSON 7/29/21 Bioventus Inc. (BVS) Special Conditions $518 million $28.00 $25.87 68,460 12/31/21 8.23% 25.91%
+ SOLY 5/10/21 Allergan Aesthetics (N/A) All Cash $550 M $22.60 $21.18 64,626 9/30/21 6.70% 101.96%
+ NFH 8/04/21 Unicorn II Holdings Limited (N/A) All Cash $2.09 billion $12.00 $11.27 175,536 12/31/21 6.48% 20.38%
+ TRIL 8/23/21 Pfizer Inc. (PFE) All Cash $1.2 B $18.50 $17.38 2,202,809 12/31/21 6.44% 20.28%
+ MRLN 4/19/21 HPS Investment Partners LLC (N/A) All Cash $109.4 M $23.50 $22.29 9,326 3/31/22 5.43% 9.62%
+ INFO 11/30/20 S&P Global (SPGI) All Stock $44 B $128.30 $122.24 1,309,666 12/31/21 4.96% 15.60%
+ FVCB 7/14/21 Blue Ridge Bankshares, Inc. (BRBS) All Stock $113.36 M $20.62 $19.68 7,856 1/31/22 4.76% 11.82%
+ FOE 5/11/21 Prince International Corporation (N/A) All Cash $2.1 B $22.00 $21.13 343,721 3/31/22 4.12% 7.30%
+ SAFM 8/09/21 Cargill and Continental Grain Company (N/A) All Cash $4.49 B $203.00 $195 246,076 1/31/22 4.10% 10.19%
+ HBMD 7/13/21 F.N.B. Corporation (FNB) All Stock $418 M $20.43 $19.68 90,274 1/31/22 3.81% 9.46%
+ SCR 8/05/21 Penn National Gaming, Inc. (PENN) Cash Plus Stock $2 B $36.58 $35.49 394,707 3/31/22 3.07% 5.44%
+ TRMT 4/26/21 RMR Mortgage Trust (RMRM) Cash Plus Stock $252.33 M $5.83 $5.66 77,311 9/30/21 3.01% 45.82%
+ HRC 9/02/21 Baxter International Inc. (BAX) All Cash $12.4 B $156.00 $151.68 2,596,932 3/31/22 2.85% 5.05%
+ ESXB 6/03/21 United Bankshares, Inc. (UBSI) All Stock $303.3 M $11.38 $11.07 35,073 12/31/21 2.79% 8.77%
+ ATH 3/08/21 Apollo Global Management, Inc. (APO) All Stock $6.01 B $71.02 $69.11 643,491 1/31/22 2.76% 6.86%
+ XONE 8/11/21 Desktop Metal, Inc. (DM) Special Conditions $418.26 M $25.50 $24.83 251,976 12/31/21 2.70% 8.49%
+ SLCT 6/01/21 First Bancorp (FBNC) All Stock $314.3 M $16.95 $16.51 18,323 12/31/21 2.68% 8.43%
+ JOBS 6/21/21 Garnet Faith Limited (N/A) All Cash $3.63 B $79.05 $77 363,176 12/31/21 2.66% 8.38%
+ XENT 8/06/21 Medtronic plc (MDT) All Cash $1.1 billion $28.25 $27.53 502,558 3/31/22 2.62% 4.63%
+ ACBI 7/23/21 SouthState Corporation (SSB) All Stock $542 M $24.84 $24.22 58,605 3/31/22 2.57% 4.56%
+ RBNC 7/15/21 United Community Banks, Inc. (UCBI) All Stock $517 M $29.57 $28.9 17,112 3/31/22 2.30% 4.08%
+ FCCY 7/12/21 Lakeland Bancorp, Inc. (LBAI) All Stock $244.4 M $22.74 $22.26 3,146 1/31/22 2.16% 5.37%
+ STFC 7/12/21 Liberty Mutual Holding Company Inc. (N/A) All Cash $2.48 B $52.00 $50.96 140,789 3/31/22 2.04% 3.62%
+ WBT 7/14/21 Ali Holding S.r.l. (N/A) All Cash $4.8 B $24.00 $23.55 555,153 1/31/22 1.91% 4.74%
+ BOCH 6/24/21 Columbia Banking System, Inc. (COLB) All Stock $266 M $14.24 $13.97 18,869 12/31/21 1.90% 5.99%
+ ATC 7/01/21 MKS Instruments, Inc. (MKSI) Cash Plus Stock $6.5 B $24.40 $23.96 118,003 12/31/21 1.83% 5.75%
+ PPD 4/15/21 Thermo Fisher Scientific Inc. (TMO) All Cash $20.9 B $47.50 $46.72 388,698 12/31/21 1.67% 5.25%
+ TBIO 8/03/21 Sanofi (SNY) All Cash $1.94 B $38.00 $37.38 895,742 9/30/21 1.66% 25.23%
+ ENBL 2/17/21 Energy Transfer LP (ET) All Stock $7.2 B $8.29 $8.16 269,344 12/31/21 1.64% 5.17%
+ PMBC 3/23/21 Banc of California (BANC) All Stock $235 M $8.88 $8.74 14,293 9/30/21 1.60% 24.36%
+ RIVE 7/01/21 Mid Penn Bancorp, Inc. (MPB) All Stock $124.7 M $12.69 $12.5 467 12/31/21 1.53% 4.82%
+ MGP 8/04/21 VICI Properties Inc. (VICI) All Stock $17.2 billion $43.75 $43.1 1,137,249 6/30/22 1.52% 1.86%
+ NUAN 4/12/21 Microsoft Corp (MSFT) All Cash $19.7 B $56.00 $55.21 1,946,881 12/31/21 1.43% 4.50%
+ STL 4/19/21 Webster Financial Corporation (WBS) All Stock $5.12 B $23.02 $22.7 1,058,476 12/31/21 1.41% 4.44%
+ ISBC 7/28/21 Citizens Financial Group, Inc. (CFG) Cash Plus Stock $3.5 B $14.25 $14.06 1,085,033 6/30/22 1.36% 1.68%
+ PNM 10/21/20 Avangrid, Inc. (AGR) All Cash $8.05 B $50.30 $49.64 379,364 12/31/21 1.33% 4.18%
+ ALTA 5/18/21 Glacier Bancorp, Inc. (GBCI) All Stock $933.5 M $41.83 $41.29 22,933 12/31/21 1.31% 4.13%
+ FRTA 2/22/21 Quikrete Holdings, Inc. (N/A) All Cash $2.74 B $24.00 $23.69 82,664 12/31/21 1.31% 4.12%
+ SPWH 12/21/20 The Great American Outdoors Group (N/A) All Cash $1.5 B $18.00 $17.77 798,410 12/31/21 1.29% 4.07%
+ FBC 4/26/21 New York Community Bancorp, Inc. (NYCB) All Stock $2.6 B $50.19 $49.6 207,857 12/31/21 1.19% 3.73%
+ SIC 8/09/21 Sun Capital Partners, Inc. (N/A) All Cash $411 M $14.50 $14.33 285,153 10/31/21 1.19% 7.87%
+ CADE 4/12/21 BancorpSouth Bank (BXS) Cash Plus Stock $2.7 B $21.87 $21.62 946,496 12/31/21 1.13% 3.57%
+ INOV 8/19/21 Nordic Capital (N/A) All Cash $7.3 B $41.00 $40.59 893,714 1/31/22 1.01% 2.51%
+ ICBK 6/22/21 Nicolet Bankshares, Inc. (NCBS) All Stock $219 M $36.93 $36.57 1,637 12/31/21 0.99% 3.11%
+ FMBI 6/01/21 Old National Bancorp (ONB) All Stock $2.86 B $18.76 $18.58 345,470 1/31/22 0.97% 2.42%
+ EBSB 4/23/21 Independent Bank Corp. (INDB) All Stock $1.15 B $20.65 $20.46 59,490 12/31/21 0.93% 2.92%
+ VEI 8/10/21 Chesapeake Energy Corporation (CHK) Cash Plus Stock $2.2 B $15.87 $15.73 240,999 12/31/21 0.92% 2.90%
+ SOGO 9/29/20 Tencent Parties (N/A) All Cash $2.19 B $8.95 $8.82 210,251 12/31/21 0.91% 2.85%
+ GTS 8/24/21 GuideWell Mutual Holding Corporation (N/A) All Cash $665.93 M $36.00 $35.68 162,023 6/30/22 0.90% 1.10%
+ CVA 7/14/21 EQT Infrastructure (N/A) All Cash $5.35 B $20.25 $20.07 783,940 12/31/21 0.90% 2.82%
+ LMRK 8/23/21 Landmark Dividend LLC (N/A) All Cash $997.25 M $16.50 $16.36 254,565 12/31/21 0.86% 2.69%
+ UFS 5/11/21 Paper Excellence (N/A) All Cash $3.02 B $55.50 $55.03 335,270 12/31/21 0.85% 2.69%
+ GNOG 8/09/21 DraftKings Inc. (DKNG) All Stock $1.52 B $22.27 $22.09 469,422 3/31/22 0.83% 1.46%
+ VER 4/29/21 Realty Income Corporation (O) All Stock $17.66 B $50.97 $50.63 864,456 12/31/21 0.67% 2.12%
+ CSOD 8/05/21 Clearlake Capital Group, L.P. (N/A) All Cash $5.2 B $57.50 $57.12 789,869 12/31/21 0.67% 2.09%
+ SC 8/24/21 Santander Holdings USA, Inc. (N/A) All Cash $12.7 B $41.50 $41.23 821,141 12/31/21 0.65% 2.06%
+ PFBI 3/29/21 Peoples Bancorp Inc. (PEBO) All Stock $292.3 M $18.14 $18.02 7,907 9/30/21 0.65% 9.84%
+ SVBI 3/03/21 Shore Bancshares, Inc. (SHBI) Cash Plus Stock $146 M $12.58 $12.5 5,659 9/30/21 0.61% 9.29%
+ DSPG 8/30/21 Synaptics Incorporated (SYNA) All Cash $399.78 M $22.00 $21.88 896,526 12/31/21 0.55% 1.73%
+ GPX 7/15/21 Learning Technologies Group (N/A) All Cash $394 M $20.85 $20.74 40,378 12/31/21 0.53% 1.67%
+ CNBKA 4/07/21 Eastern Bankshares, Inc. (EBC) All Cash $642 M $115.28 $114.72 6,662 12/31/21 0.49% 1.54%
+ GRA 4/26/21 Standard Industries Holdings Inc. (N/A) All Cash $7 B $70.00 $69.66 232,453 12/31/21 0.49% 1.54%
+ MDLA 7/26/21 Thoma Bravo (N/A) All Cash $6.4 B $34.00 $33.85 6,897,939 12/31/21 0.44% 1.39%
+ QADA 6/28/21 Thoma Bravo (N/A) All Cash $2 B $87.50 $87.12 58,620 12/31/21 0.44% 1.37%
+ JAX 7/02/21 SPB Hospitality LLC (N/A) All Cash $220 M $14.00 $13.94 25,210 11/15/21 0.43% 2.24%
+ PBCT 2/22/21 M&T Bank Corporation (MTB) All Stock $7.6 B $16.40 $16.33 3,279,906 12/31/21 0.41% 1.30%
+ STMP 7/09/21 Thoma Bravo (N/A) All Cash $6.6 B $330.00 $328.8 228,000 9/30/21 0.36% 5.55%
+ MGLN 1/04/21 Centene Corporation (CNC) All Cash $2.2 B $95.00 $94.67 202,752 12/31/21 0.35% 1.10%
+ SNR 6/28/21 Ventas, Inc. (VTR) All Stock $2.3 B $8.79 $8.76 721,071 12/31/21 0.34% 1.08%
+ CLDR 6/01/21 Clayton, Dubilier & Rice and KKR (N/A) All Cash $5.3 B $16.00 $15.95 7,870,034 12/31/21 0.31% 0.99%
+ CIT 10/16/20 First Citizens BancShares, Inc. (FCNCA) All Stock $2.42 B $55.12 $55.02 316,148 9/30/21 0.18% 2.69%
+ IEC 8/12/21 Creation Technologies Inc. (N/A) All Cash $242.3 M $15.35 $15.33 77,582 10/31/21 0.13% 0.87%
+ CBB 3/13/20 Macquarie Infrastructure Partners (N/A) All Cash $2.9 B $15.50 $15.48 2,243,384 9/07/21 0.13% 47.16%
+ NWHM 7/23/21 Apollo Global Management (N/A) All Cash $338 M $9.00 $8.99 52,566 12/31/21 0.11% 0.35%
+ LDL 6/21/21 Unifrax (N/A) All Cash $1.3 B $62.10 $62.04 111,502 12/31/21 0.10% 0.30%
+ NNA 8/26/21 Navios Maritime Partners L.P. (NMM) All Stock $1.93 B $4.01 $4.01 529,603 12/31/21 -0.07% -0.21%
+ XEC 5/24/21 Cabot Oil & Gas Corporation (COG) All Stock $8.59 B $71.50 $71.55 1,148,994 12/31/21 -0.07% -0.22%
+ CAI 6/17/21 Mitsubishi HC Capital Inc. (N/A) All Cash $2.9 B $56.00 $56.09 324,677 12/31/21 -0.16% -0.50%
+ OSN 12/17/20 New Ossen Group Limited (N/A) All Cash $84.96 M $5.10 $5.11 782,717 9/30/21 -0.20% -2.98%
+ BMTC 3/10/21 WSFS Financial Corporation (WSFS) All Stock $976.4 M $40.26 $40.43 24,236 12/31/21 -0.43% -1.35%
+ RAVN 6/21/21 CNH Industrial N.V (CNHI) All Cash $2.1 B $58.00 $58.35 134,034 12/31/21 -0.60% -1.89%
+ XOG 5/10/21 Bonanza Creek Energy, Inc. (BCEI) All Stock $2.6 B $48.37 $48.68 49,680 9/30/21 -0.64% -9.80%
+ CLDB 6/23/21 Farmers National Banc Corp. (FMNB) All Stock $124 M $26.99 $27.2 230 12/31/21 -0.79% -2.49%
+ ANAT 8/09/21 Brookfield Asset Management Reinsurance Partners Ltd. (BAMR) All Cash $5.1 B $190.00 $191.6 109,248 6/30/22 -0.84% -1.03%
+ FIVN 7/18/21 Zoom Video Communications, Inc. (ZM) All Stock $14.7 B $165.04 $170.19 2,636,236 6/30/22 -3.02% -3.72%
+ RPAI 7/16/21 Kite Realty Group Trust (KRG) All Stock $4.96 B $12.95 $13.46 986,896 12/31/21 -3.82% -12.02%
+ SBBP 5/24/21 Xeris Pharmaceuticals, Inc. (XERS) All Stock $267 M $2.13 $2.24 271,387 11/15/21 -4.80% -25.03%
+ VNE 7/22/21 Magna International Inc. (MGA) All Cash $3.3 B $31.25 $35.5 1,142,568 12/31/21 -11.97% -37.67%

Conclusion:

We have been mentioning multiple deals receiving approvals including shareholder approvals in the past. In a change of events and a rare scenario, Monmouth Real Estate Investment Corporation (MNR) did not obtain the necessary stockholder votes to approve the previously announced merger with Equity Commonwealth (EQC). MNR was in the midst of a bidding war between Starwood Real Estate Income Trust and Equity Commonwealth. We have also noticed regulators stepping in more frequently to challenge deals or asking companies to refile to give them more time to review them. It is not surprising to see a big divergence of spreads where deals with heightened regulatory risk are trading at large spreads while most other deals are trading at tiny spreads, reflecting the low interest rate environment.

Disclaimer: I have long positions in Nuance Communications (NUAN), Change Healthcare (CHNG) and Trillium Therapeutics (TRIL). I also have put options in Change Healthcare. 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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