InsideArbitrage Event Driven Monitor – October 27, 2022

Quick updates on the event-driven strategies we follow on InsideArbitrage. It is interesting to see insider buying in regional banks for a second day in a row.

Merger Arbitrage

  1. Shareholders of EVO Payments (EVOP) approved the company’s merger with Global Payments (GPN) at a special meeting of shareholders.
  2. The Board of Governors of the Federal Reserve System approved the application of Columbia Banking System (COLB) with respect to the previously announced combination of Columbia and Umpqua Holdings Corporation  (UMPQ).
  3. According to Bloomberg, Attorney General Karl Racine on behalf of a bipartisan group of attorneys general said that Albertsons (ACI) should hold off on the $4 billion dividend payment to shareholders while the pending merger with Kroger (KR) is reviewed.
  4. According to The Wall Street Journal, banks have started to send $13 billion in cash backing Elon Musk’s takeover of Twitter (TWTR), the latest sign the $44 billion deal for the social-media company is on track to close by the end of the week after months of twists and turns.

Deal in the Works

  1. In furtherance of the open letter released by Kushner on October 20, 2022, Kushner is making the attached materials available to all Veris Residential (VRE) shareholders.

Insider Purchases

  1. Jay Farner, the Chief Executive Officer of Mortgage Finance company Rocket Companies, Inc. (RKT), purchased 90,800 shares at an average price of $6.59 totaling $598,605. Matthew Rizik, a Director of the company, also purchased 9,800 shares at an average price of $6.59 totaling $64,588.
  2. Justin P. Christian, the Director of regional bank First Internet Bancorp (INBK), purchased 10,475 shares at an average price of $23.84 totaling $249,724.
  3. Michael B. Denny, the Director of regional bank First Financial Bankshares (FFIN), purchased 5,000 shares at an average price of $37.35 totaling $186,750. Two other Directors of the company also purchased 5,000 and 1,000 shares respectively.
  4. Wes Cummins, the CEO and Chairman of datacenter operator Applied Blockchain (APLD), purchased 60,000 shares at an average price of $2.16 totaling $129,600. These shares were acquired indirectly through B. Riley Asset Management.
  5. Eric Luftig, the Senior Vice President, Product of auto parts company Dorman Products (DORM), purchased 500 shares at an average price of $74.90 totaling $37,450.
  6. Murray Stahl, the Director of Texas landowner Texas Pacific Land Corp (TPL), purchased 13 shares at an average price of $2,112.26 totaling $27,459.

Spinoffs

  1. Madison Square Garden Entertainment Corp. (MSGE) announced that it has confidentially submitted an initial Form 10 Registration Statement with the U.S. Securities and Exchange Commission for the proposed spin-off of its traditional live entertainment and MSG Networks businesses.

SPACs

  1. Jupiter Wellness Acquisition (JWAC) announced the signing of a definitive business combination agreement with Chijet Motor Company, Inc.
  2. Cardio Diagnostics Holdings (CDIO) announced the completion of its business combination with Mana Capital Acquisition Corp.

Stock Buyback Announcements

  1. Masco Corporation (MAS) authorized a new $2.0 billion share repurchase program effective October 20, 2022, replacing the existing authorization. This represents around 18.5% of its market cap at announcement.
  2. United Rentals, Inc. (URI) authorized a new $1.25 billion share repurchase program through the end of 2023. The new program follows the company’s prior $1 billion program completed during the third quarter of 2022. This new program represents about 6% of its market cap at announcement.
  3. Antero Resources Corporation (AR) authorized a $1 billion increase in the company’s share repurchase program to $2 billion. This represents around 9% of its market cap at announcement.
  4. Mr. Cooper Group Inc. (COOP) announced the repurchase of up to $200 million of its outstanding common stock representing around 7% of its market cap at announcement.

C-Suite Transitions

Appointments

  1. Faraday Future Intelligent Electric (FFIE) appointed Yun Han as Chief Accounting Officer and Interim Chief Financial Officer of the Company
  2. Twist Bioscience Corporation (TWST) appointed Patrick Finn as President and Chief Operating Officer of the Company, effective immediately.
  3. Desktop Metal, Inc. (DM) appointed Jason Cole as its Chief Financial Officer and Treasurer.
  4. Automatic Data Processing, Inc. (ADP) announced that the Company’s Board of Directors has appointed Maria Black to the position of President and Chief Executive Officer and Carlos A. Rodriguez to the position of Executive Chair of the Board of Directors
  5. Bed Bath & Beyond Inc. (BBBY) announced the appointment of Sue Gove as President & Chief Executive Officer
  6. Merck (MRK) elected Robert M. Davis to serve as Chairman of the board, effective December 1, 2022

Departures

  1. Globe Life (GL)  Gary Coleman and Larry Hutchison will step down as co-CEOs, effective December 31, 2022
  2. Merck (MRK) Kenneth C. Frazier, plans to retire on November 30, 2022

Disclaimer: 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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