Merger Arbitrage Mondays – October 28, 2013

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October 28, 2013 | Merger Arbitrage | | Author Asif

Merger activity increased last week with eight new deals announced and one deal closing.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2013 141
Total Number of Deals Not Completed in 2013 2
Total Number of Pending Deals
Cash Deals 48
Stock Deals 19
Stock & Cash Deals 11
Total Number of Pending Deals 78
Total Deal Size $372.07 billion

New Deals:

  1. The acquisition of Symmetricom (SYMM) by Microsemi Corporation (MSCC) for $230 million or $7.18 per share in cash.
  2. The acquisition of Tellabs (TLAB) by Marlin Equity Partners for $891 million or $2.45 per share in cash.
  3. The acquisition of NTS (NTS) by Tower Three Partners for $83 million or $2.00 per share in cash.
  4. The acquisition of PAA Natural Gas Storage (PNG) by Plains All American Pipeline (PAA) for $2 billion in an all stock deal. Under the terms of the agreement, shareholders of PAA Natural Gas Storage will receive 0.445 common units of PAA per PNG common unit.
  5. The acquisition of Cole Real Estate Investments (COLE) by American Realty Capital Properties (ARCP) for $11.2 billion. Under the terms of the agreement, shareholders of Cole may elect to receive 1.0929 shares of ARCP common stock (reflecting a fixed exchange ratio) or $13.82 cash for each share of Cole common stock.  In the event elections for payment in cash exceed 20% of Cole’s outstanding shares, such elections would be prorated.
  6. The acquisition of Washington Banking (WBCO) by Heritage Financial (HFWA) for $265.1 million in a cash plus stock deal. Under the terms of the merger agreement, Washington Banking shareholders will receive 0.89000 shares of Heritage common stock and $2.75 in cash for each share of Washington Banking common stock.
  7. The acquisition of Home Federal Bancorp (HOME) by Cascade Bancorp (CACB) for $265.7 million. Under the terms of the agreement, Home Federal Bancorp shareholders will receive approximately $8.3368 in cash and 1.6776 shares of Cascade Bancorp common stock per share held.
  8. The acquisition of Consolidated Graphics (CGX) by R.R. Donnelley & Sons Company (RRD) for $620 million in a cash plus stock deal. Under the terms of the transaction, Consolidated Graphics shareholders will receive a combination of $34.44 in cash and a fixed exchange ratio of 1.651 RR Donnelley shares for each outstanding share of Consolidated Graphics they own.

Closed Deals:

  1. The acquisition of Optimer Pharmaceuticals (OPTR) by Cubist Pharmaceuticals (CBST) on October 24, 2013. It took 86 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) $3.20 $2.17 12/31/2013 47.47% 270.70%
CTB 06/12/2013 Apollo Tyres Ltd (N/A) $35.00 $25.66 12/31/2013 36.40% 207.59%
HOME 10/23/2013 Cascade Bancorp (CACB) $17.85 $15.55 03/31/2014 14.78% 35.04%
NYX 12/20/2012 IntercontinentalExchange, Inc. (ICE) $50.59 $44.59 11/04/2013 13.45% 701.35%
ISS 06/06/2013 Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A) $5.85 $5.20 09/30/2013 12.50% -162.95%
BBRY 09/23/2013 Fairfax Financial Holdings Limited (N/A) $9.00 $8.23 12/31/2013 9.36% 53.36%
YONG 09/23/2013 Full Alliance International Limited (N/A) $6.69 $6.25 03/31/2014 7.04% 16.69%
MFLR 05/14/2013 Independent Bank Corp. (INDB) $20.88 $19.77 12/31/2013 5.60% 31.93%
HCBK 08/27/2012 M&T Bank Corporation (MTB) $9.46 $8.99 01/31/2014 5.20% 19.98%
EVAC 08/19/2013 Atlas Copco Group (N/A) $10.50 $10.04 03/31/2014 4.58% 10.86%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) All Cash $893.6 million $3.20 $2.17 49,742 12/31/2013 47.47% 270.70%
+ CTB 06/12/2013 Apollo Tyres Ltd (N/A) All Cash $2.5 billion $35.00 $25.66 2,206,463 12/31/2013 36.40% 207.59%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $17.85 $15.55 89,023 03/31/2014 14.78% 35.04%
+ NYX 12/20/2012 IntercontinentalExchange, Inc. (ICE) All Stock $8.2 billion $50.59 $44.59 1,294,366 11/04/2013 13.45% 701.35%
+ ISS 06/06/2013 Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A) All Cash N/A $5.85 $5.20 448,054 09/30/2013 12.50% 0.00%
+ BBRY 09/23/2013 Fairfax Financial Holdings Limited (N/A) All Cash $4.7 billion $9.00 $8.23 4,362,150 12/31/2013 9.36% 53.36%
+ YONG 09/23/2013 Full Alliance International Limited (N/A) All Cash $339 million $6.69 $6.25 251,660 03/31/2014 7.04% 16.69%
+ MFLR 05/14/2013 Independent Bank Corp. (INDB) All Stock $37.2 million $20.88 $19.77 1,859 12/31/2013 5.60% 31.93%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $9.46 $8.99 7,795,906 01/31/2014 5.20% 19.98%
+ EVAC 08/19/2013 Atlas Copco Group (N/A) All Cash $1.6 billion $10.50 $10.04 20,600 03/31/2014 4.58% 10.86%
+ CAFI 10/10/2013 Huntington Bancshares Incorporated (HBAN) All Stock $97 million $6.49 $6.21 165,573 06/30/2014 4.46% 6.64%
+ ROMA 12/19/2012 Investors Bancorp Inc. (ISBC) All Stock $113.5 million $21.04 $20.20 59,187 11/30/2013 4.18% 46.22%
+ CIS 09/18/2013 Camelot Employee Scheme Inc. (N/A) All Cash N/A $2.05 $1.98 79,514 01/15/2014 3.54% 16.33%
+ WCRX 05/20/2013 Actavis, Inc. (ACT) All Stock $8.5 billion $23.70 $22.93 N/A 12/31/2013 3.38% 19.25%
+ ASIA 05/13/2013 CITIC Capital Partners (N/A) All Cash $890 million $12.00 $11.63 123,134 09/30/2013 3.18% 0.00%
+ BCSB 06/14/2013 F.N.B. Corporation (FNB) All Stock $79 million $27.08 $26.25 2,931 12/31/2013 3.17% 18.07%
+ PACT 10/17/2013 Blackstone (N/A) All Cash $625 million $7.30 $7.079 1,628,350 03/31/2014 3.12% 7.40%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.95 848,808 03/31/2014 2.56% 6.08%
+ COLE 10/23/2013 American Realty Capital Properties, Inc. (ARCP) All Stock $11.2 billion $14.91 $14.54 20,111,704 06/30/2014 2.53% 3.76%
+ STSA 09/11/2013 Umpqua Holdings Corporation (UMPQ) Cash Plus Stock $2.0 billion $30.17 $29.45 822,409 06/30/2014 2.44% 3.64%
+ PVR 10/10/2013 Regency Energy Partners LP (RGP) Cash Plus Stock $5.6 billion $26.76 $26.15 531,173 03/31/2014 2.33% 5.52%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $20.07 $19.66 11,083 03/31/2014 2.09% 4.94%
+ CSE 07/22/2013 PacWest Bancorp (PACW) Cash Plus Stock $2.3 billion $13.14 $12.89 1,005,648 03/31/2014 1.94% 4.60%
+ SCR 08/28/2013 Simcere Holding Limited (N/A) All Cash $495 million $9.66 $9.48 1,800 12/31/2013 1.90% 10.83%
+ SPRD 07/12/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $1.78 billion $31.00 $30.44 779,946 09/30/2013 1.84% 0.00%
+ FLOW 09/25/2013 American Industrial Partners (N/A) All Cash $200 million $4.05 $3.99 511,982 01/31/2014 1.50% 5.78%
+ TOFC 09/10/2013 Old National Bancorp. (ONB) Cash Plus Stock $107.7 million $24.63 $24.27 2,685 03/31/2014 1.48% 3.52%
+ WBCO 10/23/2013 Heritage Financial Corp. (HFWA) Cash Plus Stock $265.1 million $17.25 $17.00 266,006 06/30/2014 1.46% 2.17%
+ LIFE 04/15/2013 Thermo Fisher Scientific, Inc. (TMO) All Cash $13.6 billion $76.00 $75.23 781,906 01/31/2014 1.02% 3.93%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $10.00 $9.90 200 09/30/2013 1.01% 0.00%
+ STEL 06/10/2013 Union First Market Bankshares Corporation (UBSH) All Stock $445.1 million $23.89 $23.67 53,166 01/01/2014 0.93% 5.21%
+ TPGI 09/05/2013 Parkway Properties Inc. (PKY) All Stock $1.2 billion $7.12 $7.06 77,033 12/31/2013 0.91% 5.19%
+ TLAB 10/21/2013 Marlin Equity Partners (N/A) All Cash $891 million $2.45 $2.43 5,665,263 12/31/2013 0.82% 4.69%
+ HITK 08/27/2013 Akorn, Inc. (AKRX) All Cash $640 million $43.50 $43.15 27,823 03/31/2014 0.81% 1.92%
+ TUC 10/15/2013 CSC ServiceWorks, Inc. (N/A) All Cash $524 million $21.25 $21.10 143,248 06/30/2014 0.71% 1.06%
+ VCBI 01/30/2013 United Bankshares Inc. (UBSI) All Stock $490.6 million $16.43 $16.32 17,998 09/30/2013 0.70% 0.00%
+ ACTV 09/30/2013 Vista Equity Partners (N/A) All Cash $1.05 billion $14.50 $14.40 1,297,731 12/31/2013 0.69% 3.96%
+ ELN 07/29/2013 Perrigo Company (PRGO) Cash Plus Stock $8.6 billion $16.22 $16.12 5,306,776 12/31/2013 0.64% 3.66%
+ CGX 10/24/2013 R.R. Donnelley & Sons Company (RRD) Cash Plus Stock $620 million $64.08 $63.70 62,641 03/31/2014 0.59% 1.40%
+ NTSC 08/16/2013 Aurora Capital Group (N/A) All Cash N/A $23.00 $22.87 25,194 12/31/2013 0.57% 3.24%
+ MAKO 09/25/2013 Stryker Corporation (SYK) All Cash $1.65 billion $30.00 $29.84 429,096 12/31/2013 0.54% 3.06%
+ BLC 06/13/2013 Gannett Co., Inc. (GCI) All Cash $2.2 billion $13.75 $13.68 990,759 12/31/2013 0.51% 2.92%
+ TGX 08/05/2013 Juniper Investment Company, LLC (N/A) All Cash N/A $2.20 $2.19 4,573 12/31/2013 0.46% 2.60%
+ STL 04/04/2013 Provident New York Bancorp (PBNY) All Stock $344 million $14.54 $14.48 282,259 12/31/2013 0.44% 2.52%
+ CITZ 05/13/2013 First Merchants Corporation (FRME) All Stock 114.7 million $12.58 $12.53 36,142 12/31/2013 0.43% 2.46%
+ GCOM 08/26/2013 an affiliate of Wasserstein & Co. (N/A) All Cash $340 million $14.15 $14.09 48,239 12/31/2013 0.43% 2.43%
+ CRTX 09/16/2013 Chiesi Farmaceutici (N/A) All Cash N/A $9.50 $9.46 40,855 03/31/2014 0.42% 1.00%
+ SHFL 07/16/2013 Bally Technologies, Inc. (BYI) All Cash $1.3 billion $23.25 $23.16 795,169 06/15/2014 0.39% 0.62%
+ OMX 02/20/2013 Office Depot, Inc. (ODP) All Stock $1.17 billion $15.20 $15.14 914,812 12/31/2013 0.39% 2.20%
+ NAFC 07/22/2013 Spartan Stores Inc. (SPTN) All Stock $1.3 billion $28.43 $28.32 57,286 12/31/2013 0.38% 2.17%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $23.05 $22.98 28,665 06/30/2014 0.31% 0.46%
+ ALCS 07/25/2013 Argonne Capital Group LLC (N/A) All Cash $47 million $14.00 $13.96 600 12/31/2013 0.29% 1.63%
+ VRNM 09/20/2013 BASF Corporation (N/A) All Cash N/A $4.00 $3.99 41,673 12/31/2013 0.25% 1.43%
+ STEI 05/29/2013 Service Corp. International (SCI) All Cash $1.4 billion $13.25 $13.22 311,826 10/16/2013 0.23% 0.00%
+ HTSI 07/09/2013 The Kroger Co. (KR) All Cash $2.5 billion $49.38 $49.30 278,411 12/31/2013 0.16% 0.93%
+ ANLY 08/28/2013 ACS Motion Control, Ltd. (ACSEF) All Cash $35 million $6.45 $6.44 N/A 12/31/2013 0.16% 0.89%
+ OPAY 09/23/2013 ACI Worldwide, Inc. (ACIW) All Cash $109 million $8.35 $8.34 36,404 12/31/2013 0.12% 0.68%
+ ZOLT 09/26/2013 Toray Industries, Inc. (N/A) All Cash $584 million $16.75 $16.73 632,178 01/31/2014 0.12% 0.46%
+ EIHI 09/24/2013 ProAssurance Corporation (PRA) All Cash $205 million $24.50 $24.48 10,204 01/01/2014 0.08% 0.46%
+ BZ 09/16/2013 Packaging Corporation of America (PKG) All Cash $1.995 billion $12.55 $12.54 4,873,998 12/31/2013 0.08% 0.45%
+ ROCM 09/04/2013 C. R. Bard (N/A) All Cash $262 million $20.00 $20.00 28,884 12/31/2013 0.00% 0.00%
+ PNG 10/22/2013 Plains All American Pipeline, L.P. (PAA) All Stock $2 billion $23.80 $23.82 208,478 12/31/2013 -0.07% -0.41%
+ EDG 10/01/2013 Sumitomo Corporation of America, Inc. (N/A) All Cash N/A $12.00 $12.01 104,165 12/31/2013 -0.08% -0.47%
+ SKS 07/29/2013 Hudson’s Bay Company (N/A) All Cash $2.9 billion $16.00 $16.02 1,561,636 12/31/2013 -0.12% -0.71%
+ NVE 05/29/2013 MidAmerican Energy Holdings Company (N/A) All Cash $10 billion $23.75 $23.78 2,063,517 03/31/2014 -0.13% -0.30%
+ LSE 05/28/2013 American Realty Capital Properties, Inc. (ARCP) All Cash $2.2 billion $8.50 $8.52 589,454 12/02/2013 -0.23% -2.45%
+ MOLX 09/09/2013 Koch Industries, Inc. (N/A) All Cash $7.2 billion $38.50 $38.60 439,891 12/31/2013 -0.26% -1.48%
+ GWAY 09/23/2013 Vitera Healthcare Solutions (N/A) All Cash $644 million $20.35 $20.42 68,825 12/31/2013 -0.34% -1.96%
+ PSE 08/12/2013 Pioneer Natural Resources Company (PXD) All Stock $1.46 billion $49.00 $49.23 77,117 12/31/2013 -0.46% -2.62%
+ SYMM 10/21/2013 Microsemi Corporation (MSCC) All Cash $230 million $7.18 $7.22 339,862 12/29/2013 -0.55% -3.26%
+ DELL 02/05/2013 Michael Dell, Dell�s Founder, Chairman and Chief Executive Officer, in partnership with global technology investment firm Silver Lake (N/A) All Cash $24.4 billion $13.75 $13.84 10,206,221 11/01/2013 -0.65% -59.34%
+ TSRX 07/30/2013 Cubist Pharmaceuticals Inc. (CBST) All Cash $707 million $13.50 $13.63 N/A 12/31/2013 -0.95% -5.44%
+ LPS 05/28/2013 Fidelity National Financial, Inc. (FNF) All Cash $2.9 billion $33.25 $34.06 2,852,164 12/31/2013 -2.38% -13.56%
+ DOLE 08/12/2013 David H. Murdock, Dole�s Chairman and Chief Executive Officer (N/A) All Cash $1.6 billion $13.50 $13.96 2,486,890 12/31/2013 -3.30% -18.79%
+ LEAP 07/12/2013 AT&T, Inc. (T) All Cash $1.19 billion $15.00 $16.00 836,997 03/31/2014 -6.25% -14.81%
+ HOME 09/24/2013 Banner Corporation (BANR) Cash Plus Stock $197 million $13.81 $15.55 89,023 03/31/2014 -11.20% -26.55%
+ VRTA 05/31/2012 Vestin Realty Mortgage II, Inc. (VRTB) All Stock N/A $1.39 $1.65 100 03/31/2013 -15.52% 26.84%
+ BRY 02/21/2013 LinnCo, LLC (LNCO) All Stock $4.3 billion $37.15 $48.06 669,794 09/30/2013 -22.70% 295.92%



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Comments

  1. Aimar
    October 28th, 2013

    Is there any statistics available about what is the ratio between announced takeovers and the takeovers successfully completed?

  2. Asif
    November 2nd, 2013

    Hello Aimar,

    The last time I looked at the stats, 13 mergers failed in 2010 vs. 209 that completed successfully and 7 mergers failed in 2011 vs. 175 that completed successfully. So the rate of success in 2010 and 2011 was 94.14% and 96.15% respectively.

    I have not checked our database for 2012 yet. Since my data only goes back to 2010, I don’t have this information going back further. Let me know if you find a source for this going back to 2000. I would like to see how this ratio was impacted during the last two bear markets.

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