InsideArbitrage Event Driven Monitor – October 6, 2022

Quick updates on all six event-driven strategies we follow on InsideArbitrage. Interesting insider purchase at Biohaven Spinco (BHVN) as discussed below.

Merger Arbitrage

  1. Brazil’s antitrust regulator CADE approved Microsoft’s (MSFT) takeover of Activision (ATVI).
  2. Pfizer (PFE) has completed the acquisition of Global Blood Therapeutics (GBT).
  3. According to Reuters, Apollo Global Management (APO) and Sixth Street Partners, which had been looking to provide financing for Elon Musk’s proposed buyout of Twitter (TWTR), are no longer in talks with the billionaire entrepreneur.
  4. Independent proxy advisory firm Glass, Lewis recommended that Avalara (AVLR) shareholders vote against the company’s proposed sale to Vista Equity Partners.

Deals In The Works

  1. Republic First Bancorp (FRBK) receives anticipated Nasdaq notice of delisting; plans to appeal determination.

Insider Purchases

  1. John Childs, a Director of Pharmaceutical company Biohaven (BHVN), purchased 274,141 shares at an average price of $8.98 for a total value of $2.46 million. This purchase is interesting because Mr. Childs is buying the spinco that was spun out of Biohaven after its acquisition by Pfizer (PFE) closed earlier this week. Another Director also purchased shares on the open market a few weeks before the acquisition closed and I tweeted that purchase in August here. I discussed the Biohaven deal in a mid-month update for InsideArbitrage Plus and Premium members in May here. I’ve moved the update outside our paywall so that it is more broadly accessible.
  2. Jay Farner, the CEO of mortgage originator Rocket Companies (RKT), purchased 87,900 shares at an average price of $6.81 for a total value of $598,805. A Director also purchased 9,500 shares at an average price of $6.82.
  3. James Slavet, a Director of real estate software company Redfin (RDFN), purchased 6,667 shares at an average price of $5.81 for a total value of $38,722. Mr. Slavet is currently Venture Partner at Greylock and has been at the VC firm for over 16 years. We recently wrote about Redfin in Zillow (Z) in our October 2022 Special Situations newsletter.
  4. Douglas Pepper, the Director of consumer marketing company Braze (BRZE), purchased 925 shares at an average price of $34.92 for a total value of $32,303. These were indirect purchases through ICONIQ Capital.
  5. Murray Stahl, the Director of one of the largest landowners in the State of Texas, Texas Pacific Land Corporation (TPL), purchased 6 shares at an average price of $1,970 for a total value of $11,820. He has been constantly nibbling on a small number of shares during the last year and I don’t think I have ever seen an insider buying chart like the one below. The company receives royalty payments from oil and gas producers that use its land for extraction, transportation and saltwater disposal.
Texas Pacific Insider Purchases Chart

Texas Pacific Land Insider Purchases Chart

Spinoffs

  1. Fortune Brands Home & Security (FBHS), will release third quarter 2022 financial results on October 26, 2022.
  2. Kellogg Company (K) plans to issue its 2022 third quarter financial results on November 3, 2022.
  3. Crane Holdings (CR) announces date for third quarter 2022 earnings release, on October 24, 2022.

SPACs

  1. Tekkorp Digital Acquisition Corp. (TEKK) announced that it will no longer pursue an extension of the date by which it must complete an initial business combination.
  2. Goldenstone Acquisition Limited (GDST) entered into a joint agreement to terminate its combination with blockchain-based payments company, Roxe Holding.
  3. Plutonian Acquisition Corp. filed its S-1 for a $50 million IPO as the first SPAC to file for an IPO in October thus far.

Stock Buyback Announcements

  1. FedEx (FDX) adopts $1.5B accelerated share repurchase program with Morgan Stanley as part of the company’s previously announced $5 billion share repurchase program.

C-Suite Transitions

Appointments

  1. Laser Photonics (LASE) promoted Tim Schick, CFA, current Vice President of Finance, to Chief Financial Officer.
  2. Code Chain New Continent (CCNC) appointed Hongxiang Yu as the Chief Executive Officer, President, Chairman of the Board.
  3. Nuwellis (NUWE) appointed Lynn Blake as Chief Financial Officer.
  4. Assembly Biosciences (ASMB) appointed Jason A. Okazaki, the company’s President and Chief Operating Officer as President and Chief Executive Officer effective January 1, 2023.

Departures

  1. Code Chain New Continent (CCNC) announced that Wei Xu has tendered his resignation as the Chief Executive Officer, President, Chairman of the Board.
  2. Nordstrom (JWN) announced that Edmond Mesrobian, the company’s Chief Technology and Information Officer, informed the company that he was stepping down from his position.
  3. Central Valley Community Bancorp  (CVCY) announced that David A. Kinross has stepped down as Executive Vice-President and Chief Financial Officer .
  4. Assembly Biosciences (ASMB) announced that John G. McHutchison, A.O., M.D. will retire from his role as Chief Executive Officer.

Disclaimer: I have a long position in Pfizer (PFE). 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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