Merger Arbitrage Mondays – December 23, 2013

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December 23, 2013 | Merger Arbitrage | | Author Asif

Christmas came early to investment bankers with thirteen new mergers announced last week and six deals 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 175
Total Number of Deals Not Completed in 2013 5
Total Number of Pending Deals
Cash Deals 48
Stock Deals 12
Stock & Cash Deals 10
Total Number of Pending Deals 70
Total Deal Size $412.96 billion

New Deals:

  1. The acquisition of NuPathe (PATH) by Endo Health Solutions (ENDP) for $105 million or $2.85 per share in cash. In addition to the upfront cash payment, NuPathe shareholders will receive rights to receive additional cash payments of up to $3.15 per share if specified net sales of NuPathe’s migraine treatment ZECUITY are achieved over time.
  2. The acquisition of KKR Financial Holdings (KFN) by Kohlberg Kravis Roberts & Co. (KKR) for $2.6 billion in an all stock deal. Under the terms of the agreement, shareholders of KKR Financial Holdings will receive 0.51 common units of KKR for each common share of KFN.
  3. The acquisition of Brigus Gold Corp (BRD) by Primero Mining (PPP) in an all stock transaction. Under the terms of the agreement, shareholders of Brigus Gold Corp will be entitled to receive 0.175 of a Primero common share. In addition, Brigus shareholders will receive 0.1 of a common share in a newly incorporated company (“SpinCo”) for each Brigus common share. SpinCo will hold Brigus’ interests in the Goldfields project in Saskatchewan and the Ixhuatán and Huizopa projects in Mexico and will be capitalized with approximately C$10 million in cash.
  4. The acquisition of LSI Corporation (LSI) by Avago Technologies Limited (AVGO) for $6.6 billion or $11.15 per share in cash.
  5. The acquisition of Solta Medical (SLTM) by Valeant Pharmaceuticals International (VRX) for $250 million or $2.92 per share in cash.
  6. The acquisition of Syntroleum (SYNM) by Renewable Energy Group (REGI) in an all stock deal.Under the terms of the agreement, shareholders of Syntroleum Corporation will receive 0.3809 shares of REG common stock for each outstanding share of Syntroleum common stock.
  7. The acquisition of Valassis Communications (VCI) by Harland Clarke Holdings for $1.84 billion or $34.04 per share in cash.
  8. The acquisition of Nicholas Financial (NICK) by an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) for $340 million or $16.00 per share in cash.
  9. The acquisition of Gentium S.p.A (GENT) by Jazz Pharmaceuticals Public Limited Company (JAZZ) for $1 billion or $57.00 per share in cash.
  10. The acquisition of The Jones Group (JNY) by Sycamore Partners for $1.2 billion or $15.00 per share in cash.
  11. The acquisition of BRE Properties (BRE) by Essex Property Trust (ESS) for $15.4 billion in a cash plus stock transaction. Under the terms of the agreement, shareholders of BRE Properties will receive 0.2971 newly issued shares of Essex common stock plus $12.33 in cash.
  12. The acquisition of Coleman Cable (CCIX) by Southwire Company for $786 million or $26.25 per share in cash.
  13. The acquisition of Responsys (MKTG) by Oracle Corporation (ORCL) for $1.5 billion or $27.00 per share in cash.

Deal Updates:

  1. On December 17, 2014, Cooper Tire & Rubber Co.’s (CTB) appeal of a Delaware judge’s decision blocking the company’s bid to force a merger with Apollo Tyres Ltd. was dismissed by the state’s highest court.

Closed Deals:

  1. The acquisition of MAKO Surgical Corp. (MAKO) by Stryker Corporation (SYK) on December 17, 2013. It took 83 days for this deal to be completed.
  2. The acquisition of Berry Petroleum (BRY) by LinnCo (LNCO) on December 17, 2013. It took 299 days for this deal to be completed.
  3. The acquisition of Pioneer Southwest Energy Partners (PSE) by Pioneer Natural Resources Company (PXD) on December 18, 2013. It took 127 days for this deal to be completed.
  4. The acquisition of Elan Corporation (ELN) by Perrigo Company (PRGO) on December 18, 2013. It took 142 days for this deal to be completed.
  5. The acquisition of Mindspeed Technologies (MSPD) by M/A-Com Technology Solutions Holdings (MTSI) on December 18, 2013. It took 43 days for this deal to be completed.
  6. The acquisition of NV Energy (NVE) by MidAmerican Energy Holdings Company on December 20, 2013. It took 205 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

CTB 06/12/2013 Apollo Tyres Ltd (N/A) $35.00 $22.20 12/31/2013 57.66% 2630.63%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $4.29 $3.32 03/31/2014 29.18% 108.70%
WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) $3.20 $2.79 12/31/2013 14.70% 670.47%
TBOW 12/10/2013 Trunkbow Merger Group Limited (N/A) $1.46 $1.29 03/31/2014 13.18% 49.08%
HOME 10/23/2013 Cascade Bancorp (CACB) $16.78 $14.94 03/31/2014 12.28% 45.75%
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) $5.45 $5.00 09/30/2013 9.00% -39.11%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.67 03/31/2014 6.59% 24.53%
CIS 09/18/2013 Camelot Employee Scheme Inc. (N/A) $2.05 $1.94 01/15/2014 5.67% 89.98%
ICH 10/28/2013 RCS Capital Corporation (N/A) $7.25 $6.88 03/31/2014 5.38% 20.03%
YONG 09/23/2013 Full Alliance International Limited (N/A) $6.69 $6.36 03/31/2014 5.19% 19.33%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ CTB 06/12/2013 Apollo Tyres Ltd (N/A) All Cash $2.5 billion $35.00 $22.20 3,140,772 12/31/2013 57.66% 2630.63%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $4.29 $3.32 158,838 03/31/2014 29.18% 108.70%
+ WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) All Cash $893.6 million $3.20 $2.79 5,057 12/31/2013 14.70% 670.47%
+ TBOW 12/10/2013 Trunkbow Merger Group Limited (N/A) All Cash N/A $1.46 $1.29 121,600 03/31/2014 13.18% 49.08%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $16.78 $14.94 65,225 03/31/2014 12.28% 45.75%
+ 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 $5.45 $5.00 148,751 09/30/2013 9.00% 0.00%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.67 46,200 03/31/2014 6.59% 24.53%
+ CIS 09/18/2013 Camelot Employee Scheme Inc. (N/A) All Cash N/A $2.05 $1.94 66,088 01/15/2014 5.67% 89.98%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $6.88 73,696 03/31/2014 5.38% 20.03%
+ YONG 09/23/2013 Full Alliance International Limited (N/A) All Cash $339 million $6.69 $6.36 444,922 03/31/2014 5.19% 19.33%
+ TPGI 09/05/2013 Parkway Properties Inc. (PKY) All Stock $1.2 billion $7.19 $6.85 N/A 12/31/2013 5.01% 228.46%
+ CAFI 10/10/2013 Huntington Bancshares Incorporated (HBAN) All Stock $97 million $6.94 $6.63 82,832 06/30/2014 4.74% 9.16%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $9.61 $9.20 7,642,863 01/31/2014 4.43% 41.50%
+ BRD 12/16/2013 Primero Mining Corp. (PPP) All Stock N/A $0.77 $0.74 1,445,656 03/31/2014 3.82% 14.22%
+ PACT 10/17/2013 Blackstone (N/A) All Cash $625 million $7.30 $7.04 1,005,001 03/31/2014 3.69% 13.76%
+ EVAC 08/19/2013 Atlas Copco Group (N/A) All Cash $1.6 billion $10.50 $10.17 8,236 03/31/2014 3.24% 12.09%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $10.00 $9.69 8,010 09/30/2013 3.20% 0.00%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.95 1,212,498 06/30/2014 3.06% 5.92%
+ FLOW 09/25/2013 American Industrial Partners (N/A) All Cash $200 million $4.05 $3.94 1,411,039 01/31/2014 2.79% 26.13%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.95 65,499 03/31/2014 2.56% 9.55%
+ KFN 12/16/2013 Kohlberg Kravis Roberts & Co. L.P. (KKR) All Stock $2.6 billion $12.48 $12.24 3,657,261 06/30/2014 1.96% 3.78%
+ LSI 12/16/2013 Avago Technologies Limited (AVGO) All Cash $6.6 billion $11.15 $10.94 23,911,160 06/30/2014 1.92% 3.71%
+ TOFC 09/10/2013 Old National Bancorp. (ONB) Cash Plus Stock $107.7 million $25.19 $24.72 4,603 03/31/2014 1.92% 7.14%
+ VIFL 12/06/2013 Sterigenics International LLC (N/A) All Cash N/A $7.23 $7.10 553 03/31/2014 1.83% 6.82%
+ BCSB 06/14/2013 F.N.B. Corporation (FNB) All Stock $79 million $25.79 $25.43 783 12/31/2013 1.42% 64.95%
+ WBCO 10/23/2013 Heritage Financial Corp. (HFWA) Cash Plus Stock $265.1 million $17.63 $17.40 107,074 06/30/2014 1.33% 2.56%
+ UBNK 11/15/2013 Rockville Financial Inc. (RCKB) All Stock $369 million $19.39 $19.14 126,473 06/30/2014 1.29% 2.48%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.37 605,785 03/31/2014 1.12% 4.16%
+ CGX 10/24/2013 R.R. Donnelley & Sons Company (RRD) Cash Plus Stock $620 million $65.26 $64.61 111,473 03/31/2014 1.01% 3.77%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $15.84 514,139 04/30/2014 1.01% 2.88%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $59.70 1,447,436 12/31/2014 0.92% 0.90%
+ JNY 12/19/2013 Sycamore Partners (N/A) All Cash $1.2 billion $15.00 $14.87 47,901,440 06/30/2014 0.87% 1.69%
+ STSA 09/11/2013 Umpqua Holdings Corporation (UMPQ) Cash Plus Stock $2.0 billion $33.83 $33.55 770,571 06/30/2014 0.83% 1.60%
+ CSE 07/22/2013 PacWest Bancorp (PACW) Cash Plus Stock $2.3 billion $14.29 $14.19 3,016,888 03/31/2014 0.70% 2.60%
+ PNG 10/22/2013 Plains All American Pipeline, L.P. (PAA) All Stock $2 billion $22.50 $22.35 496,283 12/31/2013 0.69% 31.37%
+ BRE 12/19/2013 Essex Property Trust Inc. (ESS) Cash Plus Stock $15.4 billion $54.55 $54.19 1,805,975 03/31/2014 0.67% 2.50%
+ SCR 08/28/2013 Simcere Holding Limited (N/A) All Cash $495 million $9.66 $9.60 66,807 12/31/2013 0.63% 28.52%
+ LIFE 04/15/2013 Thermo Fisher Scientific, Inc. (TMO) All Cash $13.6 billion $76.00 $75.65 1,475,186 01/31/2014 0.46% 4.33%
+ VPHM 11/11/2013 Shire plc (SHPG) All Cash $4.2 billion $50.00 $49.79 3,171,846 03/31/2014 0.42% 1.57%
+ ASIA 05/13/2013 CITIC Capital Partners (N/A) All Cash $890 million $12.00 $11.95 1,974,951 12/31/2013 0.42% 19.09%
+ PVR 10/10/2013 Regency Energy Partners LP (RGP) Cash Plus Stock $5.6 billion $24.98 $24.90 656,978 03/31/2014 0.34% 1.25%
+ VCBI 01/30/2013 United Bankshares Inc. (UBSI) All Stock $490.6 million $17.23 $17.18 131,060 01/31/2014 0.29% 2.69%
+ HITK 08/27/2013 Akorn, Inc. (AKRX) All Cash $640 million $43.50 $43.40 153,659 03/31/2014 0.23% 0.86%
+ SNTS 11/07/2013 Salix Pharmaceuticals Ltd. (SLXP) All Cash $2.6 billion $32.00 $31.93 2,548,499 01/01/2014 0.22% 8.89%
+ SPRD 07/12/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $1.78 billion $31.00 $30.94 406,695 09/30/2013 0.19% 0.00%
+ ANEN 11/04/2013 an affiliate of The Veritas Capital Fund IV, L.P. (N/A) All Cash $381 million $28.00 $27.95 78,820 03/31/2014 0.18% 0.67%
+ ANLY 08/28/2013 ACS Motion Control, Ltd. (ACSEF) All Cash $35 million $6.45 $6.44 N/A 12/31/2013 0.16% 7.08%
+ STEI 05/29/2013 Service Corp. International (SCI) All Cash $1.4 billion $13.25 $13.23 741,481 10/16/2013 0.15% 0.00%
+ STEL 06/10/2013 Union First Market Bankshares Corporation (UBSH) All Stock $445.1 million $24.38 $24.34 109,250 01/01/2014 0.15% 6.12%
+ HTSI 07/09/2013 The Kroger Co. (KR) All Cash $2.5 billion $49.38 $49.31 648,896 12/31/2013 0.14% 6.48%
+ GIVN 12/08/2013 Covidien plc (COV) All Cash $860 million $30.00 $29.97 72,891 03/31/2014 0.10% 0.37%
+ BLC 06/13/2013 Gannett Co., Inc. (GCI) All Cash $2.2 billion $13.75 $13.74 1,120,785 12/31/2013 0.07% 3.32%
+ ZOLT 09/26/2013 Toray Industries, Inc. (N/A) All Cash $584 million $16.75 $16.74 236,191 01/31/2014 0.06% 0.56%
+ TUC 10/15/2013 CSC ServiceWorks, Inc. (N/A) All Cash $524 million $21.25 $21.24 75,370 06/30/2014 0.05% 0.09%
+ CRTX 09/16/2013 Chiesi Farmaceutici (N/A) All Cash N/A $9.50 $9.50 82,411 03/31/2014 0.00% 0.00%
+ INOC 11/15/2013 an affiliate of Sterling Partners (N/A) All Cash N/A $8.20 $8.20 7,099 03/31/2014 0.00% 0.00%
+ EIHI 09/24/2013 ProAssurance Corporation (PRA) All Cash $205 million $24.50 $24.55 35,082 01/01/2014 -0.20% -8.26%
+ COLE 10/23/2013 American Realty Capital Properties, Inc. (ARCP) All Stock $11.2 billion $13.77 $13.80 2,911,651 06/30/2014 -0.21% -0.41%
+ GENT 12/19/2013 Jazz Pharmaceuticals Public Limited Company (JAZZ) All Cash $1 billion $57.00 $57.22 3,082,841 03/31/2014 -0.38% -1.43%
+ HPOL 11/25/2013 Nielsen Holdings N.V. (NLSN) All Cash $117 million $2.00 $2.01 69,900 03/31/2014 -0.50% -1.85%
+ CCIX 12/20/2013 Southwire Company (N/A) All Cash $786 million $26.25 $26.40 1,587,772 03/31/2014 -0.57% -2.12%
+ SLTM 12/16/2013 Valeant Pharmaceuticals International, Inc. (VRX) All Cash $250 million $2.92 $2.96 2,283,912 03/31/2014 -1.35% -5.03%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $27.40 25,161,280 06/30/2014 -1.46% -2.82%
+ VCI 12/18/2013 Harland Clarke Holdings Corp. (N/A) All Cash $1.84 billion $34.04 $34.60 2,415,138 03/31/2014 -1.62% -6.03%
+ VTNC 12/09/2013 Manitoulin Transport Inc. (N/A) All Cash $128 million $6.00 $6.14 49,225 03/31/2014 -2.28% -8.49%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $19.91 $20.79 82,751 03/31/2014 -4.23% -15.77%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $24.32 $25.99 203,705 06/30/2014 -6.41% -12.38%
+ LPS 05/28/2013 Fidelity National Financial, Inc. (FNF) All Cash $2.9 billion $33.25 $36.49 2,010,697 12/31/2013 -8.88% -405.11%
+ PATH 12/16/2013 Endo Health Solutions Inc. (ENDP) All Cash $105 million $2.85 $3.24 372,160 01/31/2014 -12.04% -112.65%
+ LEAP 07/12/2013 AT&T, Inc. (T) All Cash $1.19 billion $15.00 $17.36 986,659 03/31/2014 -13.59% -50.63%

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria





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