InsideArbitrage Event Driven Monitor – September 28, 2022

We are excited to roll out new branding for InsideArbitrage today with a new logo and updated headers for our emails and Twitter account. We are also rolling out a new type of daily article called the InsideArbitrage Event Driven Monitor that provides quick updates on all six event-driven strategies we follow on InsideArbitrage. The Event Driven Monitor will be published before market open each weekday and I hope you find it useful.

Merger Arbitrage

1. The merger of Lakeland Bancorp (LBAI) and Provident Financial Services (PFS) for $1.3 billion in an all-stock deal. Under the terms of the merger agreement, Lakeland shareholders will receive 0.8319 shares of Provident common stock for each share of Lakeland common stock they own.
2. Saint-Gobain completed the acquisition of GCP Applied Technologies.
3. Pfizer’s (PFE) acquisition of Bioaven Pharmaceutical Holding Company (BHVN) to be completed on October 3, 2022.
4. Nikola (NKLA) extended the deadline for Romeo Power (RMO) stockholders to tender their shares to October 12, 2022.
5. According to The Wall Street Journal, lawyers for Elon Musk and Twitter (TWTR) debated several pending requests for information in their continuing legal fight, with less than three weeks to go before a scheduled trial over Mr. Musk’s soured $44 billion takeover.
6. All regulatory approvals relating to the acquisition of Randolph (RNDB) by Hometown Financial Group have been received.
7. According to Reuters, the U.S. Justice Department urged a judge to force American Airlines (AAL) and JetBlue Airways (JBLU) to scrap their U.S. Northeast partnership because it would mean higher prices for consumers.
8. Shareholders of Sierra Wireless (SWIR) approved the acquisition of the company by Semtech Corporation.
9. MTY Food Group completed the acquisition of BBQ Holdings (BBQ)

Deals In The Works

1. Apollo Global Management (APO) is exploring a takeover of Ryder System (R)

Insider Purchases

1. Jefrey Gould, the CEO of apartment REIT BRT Apartments (BRT), picked up 11,137 shares at an average price of $21.36 for a total value of $237,839.
2. The CFO and a Director of office REIT Hudson Pacific Properties (HPP), picked up 2,083 and 7,500 shares respectively.
3. Edward Flynn, the President of oil pipeline company Genesis Energy L.P. (GEL), picked up 20,000 shares at an average price of $10.02 for a total value of $200,400.
4. Markus Limberger, the EVP Operations of industrial tools company Enerpac Tool Group (EPAC), purchased and immediately sold 3,000 shares within a few days of the purchase. This round trip transaction generated a nearly $4,000 loss for him. The footnotes of the filing makes for interesting reading. The company is expected to report results after market hours today.

Spinoffs

1. Biohaven Pharmaceutical Holding Company (BHVN) announced that the closing date of the previously announced acquisition of Biohaven by Pfizer is expected to be on October 3, 2022. Biohaven common shareholders, including Pfizer, will also receive 0.5 of a share of New Biohaven, a new publicly traded company that will retain Biohaven’s non-CGRP development stage pipeline compounds.
2. Harley-Davidson (HOG) completed the spinoff of its electric motorcycle division LiveWire EV LLC (LVWR), which began trading Tuesday, September 27, 2022 on the New York Stock Exchange.

SPACs

1. Harley-Davidson (HOG) and AEA-Bridges Impact (IMPX) announced the completion of their previously announced business combination under which LiveWire EV (LVWR), Harley-Davidson’s electric motorcycle division, combined with ABIC, to create a new public company.

Stock Buyback Announcements

1. Beauty Health Company (SKIN) announces a new $200 million share repurchase authorization; enters into $100 million accelerated share repurchase agreement with JPMorgan. Represents 11.5% of company’s market cap at announcement.
2. Jabil (JBL) announces a new $1 billion share repurchase authorization representing around 13% of its market cap at announcement.

C-Suite Transitions

1. Neogen Corporation (NEOG) announced that Steve Quinlan, Chief Financial Officer will retire from his position
2. Neogen Corporation (NEOG) announced that David Naemura will be appointed as Chief Financial Officer
3. Ecolab (ECL) announced that Darrell Brown has been appointed to the position of President and Chief Operating Officer
4. Kevin Bunker was promoted to Chief Scientific Officer of Zentalis Pharmaceuticals (ZNTL)
5. Tyson Foods (TSN) announced Stewart Glendinning, Chief Financial Officer, will step down from his position