Merger Arbitrage Mondays – January 27, 2014

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January 27, 2014 | Merger Arbitrage | | Author Asif

Merger Activity decreased last week with a trio of regional bank mergers, 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 11
Total Number of Pending Deals
Cash Deals 46
Stock Deals 12
Stock & Cash Deals 10
Total Number of Pending Deals 68
Total Deal Size $124.18 billion

New Deals:

  1. The acquisition of ConnectOne Bancorp (CNOB) by Center Bancorp (CNBC) for $243 million in an all stock deal. Under the terms of the agrement, shareholders of ConnectOne Bancorp will receive 2.6 shares of Center common stock for each share of ConnectOne common stock.
  2. The acquisition of North Valley Bancorp (NOVB) by TriCo Bancshares (TCBK) for $178.4 million in an all stock deal. Under the terms of the agreement, shareholders of North Valley Bancorp will receive a fixed exchange ratio of 0.9433 shares of TriCo common stock in exchange for each share of North Valley common stock.
  3. The acquisition of Jefferson Bancshares (JFBI) by HomeTrust Bancshares (HTBI) for $51.2 million. Under the terms of the agreement, Jefferson shareholders will receive a total of $8.00 per share in merger consideration consisting of $4.00 in cash plus $4.00 in HomeTrust common stock. This represents approximately $51.2 million of aggregate transaction consideration.  The number of HomeTrust shares to be issued will be determined based on HomeTrust’s average closing stock price during the 10 trading days ending on the fifth trading day prior to the closing date, with the exchange ratio fixed at 0.2667 if the average closing price is equal to or less than $15.00 per share and at 0.2222 if the average closing price is equal to or greater than $18.00 per share. We are treating this as an all cash deal.

Deal Updates:

  1. On January 21, 2014, NuPathe (PATH) terminated its agreement and plan of merger with Endo Health Solutions (ENDP) and entered into an agreement and plan of merger with Teva Pharmaceuticals (TEVA) for $3.65 per share in cash. In addition to the upfront cash payment, NuPathe stockholders 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.

Closing Deals:

  1. The acquisition of Solta Medical (SLTM) by Valeant Pharmaceuticals International (VRX) on January 25, 2014. It took 40 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 $2.15 12/31/2013 48.84% -660.21%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $3.00 $2.58 06/30/2014 16.28% 38.58%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $3.92 $3.44 03/31/2014 14.05% 81.39%
HOME 10/23/2013 Cascade Bancorp (CACB) $16.42 $14.50 03/31/2014 13.26% 76.83%
TBOW 12/10/2013 Trunkbow Merger Group Limited (N/A) $1.46 $1.35 03/31/2014 8.15% 47.21%
CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) $3.51 $3.36 06/30/2014 4.46% 10.58%
HWG 06/05/2013 Hallwood Financial Limited (N/A) $10.00 $9.60 09/30/2013 4.17% -12.78%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.71 03/31/2014 4.09% 23.72%
CAFI 10/10/2013 Huntington Bancshares Incorporated (HBAN) $6.84 $6.59 06/30/2014 3.83% 9.09%
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 $5.26 09/30/2013 3.61% -11.08%

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 $2.15 14,120 12/31/2013 48.84% 0.00%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $3.00 $2.58 1,029,625 06/30/2014 16.28% 38.58%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $3.92 $3.44 87,904 03/31/2014 14.05% 81.39%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $16.42 $14.50 30,083 03/31/2014 13.26% 76.83%
+ TBOW 12/10/2013 Trunkbow Merger Group Limited (N/A) All Cash N/A $1.46 $1.35 129,742 03/31/2014 8.15% 47.21%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.36 66,262 06/30/2014 4.46% 10.58%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $10.00 $9.60 2 09/30/2013 4.17% 0.00%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.71 37,156 03/31/2014 4.09% 23.72%
+ CAFI 10/10/2013 Huntington Bancshares Incorporated (HBAN) All Stock $97 million $6.84 $6.59 100,944 06/30/2014 3.83% 9.09%
+ 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 $5.26 71,421 09/30/2013 3.61% 0.00%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $9.35 $9.045 4,317,759 01/31/2014 3.37% 307.72%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $25.27 $24.46 134,068 06/30/2014 3.32% 7.86%
+ PACT 10/17/2013 Blackstone (N/A) All Cash $625 million $7.30 $7.08 707,991 03/31/2014 3.11% 18.00%
+ JFBI 01/23/2014 HomeTrust Bancshares, Inc. (HTBI) All Cash $51.2 million $8.00 $7.77 80,704 06/30/2014 2.96% 7.02%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.28 302,525 03/31/2014 2.84% 16.46%
+ CIS 09/18/2013 Camelot Employee Scheme Inc. (N/A) All Cash N/A $2.05 $2.00 36,418 01/15/2014 2.50% 0.00%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $18.10 488,846 06/30/2014 2.21% 5.24%
+ YONG 09/23/2013 Full Alliance International Limited (N/A) All Cash $339 million $6.69 $6.55 736,639 03/31/2014 2.14% 12.38%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $47.79 $46.85 12,755 09/30/2014 2.00% 2.97%
+ TSH 01/13/2014 IberiaBank Corp. (IBKC) All Stock $161 million $73.25 $72.00 4,354 06/30/2014 1.74% 4.12%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $15.73 133,713 04/30/2014 1.72% 6.74%
+ UBNK 11/15/2013 Rockville Financial Inc. (RCKB) All Stock $369 million $19.18 $18.90 50,417 06/30/2014 1.50% 3.56%
+ LSI 12/16/2013 Avago Technologies Limited (AVGO) All Cash $6.6 billion $11.15 $11.00 9,347,523 06/30/2014 1.36% 3.23%
+ CEDU 12/31/2013 ChinaEdu Holdings Limited (“Holdings”) and ChinaEdu Merger Sub Limited (“Merger Sub”) (N/A) All Cash N/A $7.00 $6.912 3,659 06/30/2014 1.27% 3.02%
+ VIFL 12/06/2013 Sterigenics International LLC (N/A) All Cash N/A $7.23 $7.15 1,849 03/31/2014 1.12% 6.48%
+ KFN 12/16/2013 Kohlberg Kravis Roberts & Co. L.P. (KKR) All Stock $2.6 billion $12.53 $12.40 1,469,981 06/30/2014 1.01% 2.40%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.98 86,454 03/31/2014 1.01% 5.85%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.91 569,644 06/30/2014 1.01% 2.39%
+ JNY 12/19/2013 Sycamore Partners (N/A) All Cash $1.2 billion $15.00 $14.86 3,575,747 06/30/2014 0.94% 2.23%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $59.71 1,382,233 12/31/2014 0.90% 0.98%
+ BRD 12/16/2013 Primero Mining Corp. (PPP) All Stock N/A $0.97 $0.961 839,363 03/31/2014 0.88% 5.12%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $19.01 $18.85 4,868 03/31/2014 0.85% 4.92%
+ CSE 07/22/2013 PacWest Bancorp (PACW) Cash Plus Stock $2.3 billion $14.67 $14.55 1,781,307 03/31/2014 0.82% 4.74%
+ PVR 10/10/2013 Regency Energy Partners LP (RGP) Cash Plus Stock $5.6 billion $27.49 $27.29 414,264 03/31/2014 0.74% 4.31%
+ VTNC 12/30/2013 TransForce Inc. (N/A) All Cash $136 million $6.50 $6.46 375,344 03/15/2014 0.62% 4.81%
+ BCSB 06/14/2013 F.N.B. Corporation (FNB) All Stock $79 million $25.73 $25.58 300 12/31/2013 0.58% 0.00%
+ WBCO 10/23/2013 Heritage Financial Corp. (HFWA) Cash Plus Stock $265.1 million $18.01 $17.91 50,832 06/30/2014 0.58% 1.37%
+ COLE 10/23/2013 American Realty Capital Properties, Inc. (ARCP) All Stock $11.2 billion $15.33 $15.26 5,935,789 06/30/2014 0.48% 1.14%
+ HITK 08/27/2013 Akorn, Inc. (AKRX) All Cash $640 million $43.50 $43.33 45,578 03/31/2014 0.39% 2.27%
+ BRE 12/19/2013 Essex Property Trust Inc. (ESS) Cash Plus Stock $15.4 billion $57.66 $57.45 490,046 03/31/2014 0.37% 2.13%
+ ZOLT 09/26/2013 Toray Industries, Inc. (N/A) All Cash $584 million $16.75 $16.69 1,102,467 01/31/2014 0.36% 32.80%
+ VCBI 01/30/2013 United Bankshares Inc. (UBSI) All Stock $490.6 million $16.13 $16.08 38,518 01/31/2014 0.31% 28.42%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.23 10,478 03/31/2014 0.28% 1.60%
+ TOFC 09/10/2013 Old National Bancorp. (ONB) Cash Plus Stock $107.7 million $24.11 $24.05 885 03/31/2014 0.27% 1.54%
+ FLOW 09/25/2013 American Industrial Partners (N/A) All Cash $200 million $4.05 $4.04 266,176 01/31/2014 0.25% 22.59%
+ GIVN 12/08/2013 Covidien plc (COV) All Cash $860 million $30.00 $29.95 139,089 03/31/2014 0.17% 0.97%
+ ANLY 08/28/2013 ACS Motion Control, Ltd. (ACSEF) All Cash $35 million $6.45 $6.44 N/A 12/31/2013 0.16% 0.00%
+ CCIX 12/20/2013 Southwire Company (N/A) All Cash $786 million $26.25 $26.21 255,260 03/31/2014 0.15% 0.88%
+ STSA 09/11/2013 Umpqua Holdings Corporation (UMPQ) Cash Plus Stock $2.0 billion $33.49 $33.45 99,142 06/30/2014 0.13% 0.32%
+ GENT 12/19/2013 Jazz Pharmaceuticals Public Limited Company (JAZZ) All Cash $1 billion $57.00 $56.95 125,702 03/31/2014 0.09% 0.51%
+ DRCO 12/23/2013 Engility Holdings, Inc. (EGL) All Cash $120.9 million $11.50 $11.49 48,134 03/31/2014 0.09% 0.50%
+ VPHM 11/11/2013 Shire plc (SHPG) All Cash $4.2 billion $50.00 $49.96 N/A 03/31/2014 0.08% 0.46%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 1,471,815 06/30/2014 0.07% 0.18%
+ ANEN 11/04/2013 an affiliate of The Veritas Capital Fund IV, L.P. (N/A) All Cash $381 million $28.00 $27.98 40,599 03/31/2014 0.07% 0.41%
+ BEAM 01/13/2014 Suntory Holdings Limited (N/A) All Cash $16 billion $83.50 $83.45 2,383,337 06/30/2014 0.06% 0.14%
+ LIFE 04/15/2013 Thermo Fisher Scientific, Inc. (TMO) All Cash $13.6 billion $76.00 $75.96 3,240,861 01/31/2014 0.05% 4.81%
+ CGX 10/24/2013 R.R. Donnelley & Sons Company (RRD) Cash Plus Stock $620 million $65.03 $65.00 73,475 03/31/2014 0.05% 0.29%
+ HTSI 07/09/2013 The Kroger Co. (KR) All Cash $2.5 billion $49.38 $49.36 396,102 12/31/2013 0.04% 0.00%
+ CRTX 09/16/2013 Chiesi Farmaceutici (N/A) All Cash N/A $9.50 $9.50 99,495 03/31/2014 0.00% 0.00%
+ VCI 12/18/2013 Harland Clarke Holdings Corp. (N/A) All Cash $1.84 billion $34.04 $34.04 1,425,939 03/31/2014 0.00% 0.00%
+ TFCO 12/20/2013 Tufco Holdings, LLC (N/A) All Cash N/A $6.07 $6.07 6,506 03/31/2014 0.00% 0.00%
+ MASC 01/09/2014 Zink Acquisition Holdings Inc. (N/A) All Cash $139 million $12.75 $12.75 72,890 05/15/2014 0.00% 0.00%
+ XRTX 12/23/2013 Seagate Technology Public Limited Company (STX) All Cash $374 million $13.25 $13.26 1,066,462 06/30/2014 -0.08% -0.18%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $23.02 $23.04 32,978 06/30/2014 -0.09% -0.22%
+ CEC 01/16/2014 An affiliate of Apollo Global Management, LLC (APO) All Cash $1.3 billion $54.00 $54.16 593,506 03/31/2014 -0.30% -1.71%
+ HPOL 11/25/2013 Nielsen Holdings N.V. (NLSN) All Cash $117 million $2.00 $2.03 202,563 03/31/2014 -1.48% -8.56%
+ PATH 12/16/2013 Teva Pharmaceutical Industries (TEVA) All Cash $105 million $3.65 $4.16 281,356 01/31/2014 -12.26% -1118.69%
+ LEAP 07/12/2013 AT&T, Inc. (T) All Cash $1.19 billion $15.00 $17.45 485,187 03/31/2014 -14.04% -81.34%

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




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