Merger Arbitrage Mondays – April 14, 2014

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April 14, 2014 | Merger Arbitrage | | Author Asif

Merger Activity remained consistent last week with three new mergers announced, and two 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 2014 47
Total Number of Pending Deals
Cash Deals 40
Stock Deals 13
Stock & Cash Deals 12
Total Number of Pending Deals 65
Total Deal Size $233.49 billion

New Deals:

  1. The acquisition of Vocus (VOCS) by the private equity firm GTCR LLC for $446.5 million or $18.00 per share in cash.
  2. The acquisition of Questcor Pharmaceuticals (QCOR) by Mallinckrodt plc (MNK) for $5.6 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Questcor Pharmaceuticals will receive $30.00 in cash and 0.897 Mallinckrodt shares for each share of Questcor common stock they own.
  3. The acquisition of OBA Financial Services (OBAF) by F.N.B. Corporation (FNB) for $94 million in an all stock deal. Under the terms of the agreement, shareholders of OBA Financial Services will receive 1.781 shares of F.N.B. Corporation common stock for each common share of OBA Financial Services.

Deal Updates:

  1. On April 9, 2014, Yongye International (YONGaccepted a revised ‘going private’ proposal at $7.10 per share and entered into an amended merger agreement.

Closed Deals:

  1. The acquisition of CapitalSource (CSE) by PacWest Bancorp (PACW) on April 8, 2014. It took 260 days for this deal to be completed.
  2. The acquisition of The Jones Group (JNY) by Sycamore Partners on April 8, 2014. It took 110 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

TWGP 01/06/2014 ACP Re Ltd. (N/A) $3.00 $2.45 06/30/2014 22.45% 106.41%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $4.51 $3.79 03/31/2014 19.09% -497.81%
EQU 12/09/2013 Petroflow Energy Corporation (N/A) $5.43 $4.68 03/31/2014 16.03% -417.81%
HOME 10/23/2013 Cascade Bancorp (CACB) $16.51 $14.58 03/31/2014 13.21% -344.53%
LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $24.60 03/31/2015 13.09% 13.61%
WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) $3.20 $2.84 05/31/2014 12.68% 98.44%
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 $5.07 09/30/2013 7.50% -13.96%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $86.11 $80.12 09/30/2014 7.47% 16.14%
HWG 06/05/2013 Hallwood Financial Limited (N/A) $13.00 $12.25 04/30/2014 6.12% 139.67%
SWY 03/06/2014 AB Acquisition LLC (N/A) $40.00 $37.89 12/31/2014 5.57% 7.79%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $3.00 $2.45 887,732 06/30/2014 22.45% 106.41%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $4.51 $3.79 77,481 03/31/2014 19.09% 0.00%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $4.68 943,047 03/31/2014 16.03% 0.00%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $16.51 $14.58 41,285 03/31/2014 13.21% 0.00%
+ LIN 03/22/2014 Media General, Inc. (MEG) All Cash $2.6 billion $27.82 $24.60 242,166 03/31/2015 13.09% 13.61%
+ WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) All Cash $893.6 million $3.20 $2.84 7,877 05/31/2014 12.68% 98.44%
+ 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 $5.07 136,936 09/30/2013 7.50% 0.00%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $86.11 $80.12 3,220,377 09/30/2014 7.47% 16.14%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $13.00 $12.25 1,750 04/30/2014 6.12% 139.67%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) All Cash N/A $40.00 $37.89 3,206,859 12/31/2014 5.57% 7.79%
+ NINE 01/29/2014 Ninetowns Holdings Limited (“Parent”) (N/A) All Cash N/A $1.80 $1.71 63,209 06/30/2014 5.26% 24.95%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.69 56,142 06/30/2014 4.58% 21.70%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $11.75 $11.27 2,165,760 12/31/2014 4.26% 5.96%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.48 $21.56 24,522 09/30/2014 4.25% 9.18%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $9.93 $9.55 2,704,438 12/31/2014 4.02% 5.62%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $137.89 $133.08 3,768,335 12/31/2014 3.61% 5.05%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.62 1,282,617 12/31/2014 3.27% 4.57%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.77 10,123 08/15/2014 2.89% 8.57%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.42 23,547 06/30/2014 2.63% 12.47%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.07 39,238 03/31/2014 2.55% 0.00%
+ JFBI 01/23/2014 HomeTrust Bancshares, Inc. (HTBI) All Cash $51.2 million $8.00 $7.81 74,168 06/30/2014 2.43% 11.53%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $33.82 $33.09 931,019 12/31/2014 2.19% 3.07%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.94 2,557 06/30/2014 2.04% 9.67%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $88.47 $86.76 2,722,869 06/30/2014 1.97% 9.33%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $30.04 $29.57 469,796 09/30/2014 1.59% 3.43%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.97 31,949 03/31/2014 1.52% 0.00%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $7.00 1,848,258 09/30/2014 1.43% 3.09%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.76 1,936 03/31/2014 1.14% 0.00%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $15.83 68,634 04/30/2014 1.07% 24.50%
+ EPL 03/12/2014 Energy XXI (Bermuda) Limited (EXXI) Cash Plus Stock $2.3 billion $38.31 $37.94 520,174 06/30/2014 0.99% 4.68%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.37 617,115 06/30/2014 0.98% 4.64%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $18.40 $18.23 967 06/30/2014 0.93% 4.42%
+ DLLR 04/02/2014 affiliate of Lone Star Funds (N/A) All Cash $1.3 billion $9.50 $9.42 2,862,312 09/30/2014 0.85% 1.83%
+ LSI 12/16/2013 Avago Technologies Limited (AVGO) All Cash $6.6 billion $11.15 $11.06 3,845,112 06/30/2014 0.81% 3.86%
+ TBOW 12/10/2013 Trunkbow Merger Group Limited (N/A) All Cash N/A $1.46 $1.45 187,391 03/31/2014 0.69% 0.00%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $22.75 $22.60 1,589 06/30/2014 0.67% 3.20%
+ CEDU 12/31/2013 ChinaEdu Holdings Limited (“Holdings”) and ChinaEdu Merger Sub Limited (“Merger Sub”) (N/A) All Cash N/A $7.00 $6.96 8,877 06/30/2014 0.57% 2.72%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $48.10 $47.84 15,846 09/30/2014 0.54% 1.17%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $87.09 $86.68 75,747 06/30/2014 0.47% 2.23%
+ LCAV 02/13/2014 PhotoMedex, Inc. (PHMD) All Cash $106.4 million $5.37 $5.345 62,603 06/30/2014 0.47% 2.22%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $59.98 222,051 12/31/2014 0.45% 0.63%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 2.12%
+ HITK 08/27/2013 Akorn, Inc. (AKRX) All Cash $640 million $43.50 $43.34 145,480 03/31/2014 0.37% 0.00%
+ UBNK 11/15/2013 Rockville Financial Inc. (RCKB) All Stock $369 million $17.90 $17.85 46,113 06/30/2014 0.30% 1.44%
+ BEAM 01/13/2014 Suntory Holdings Limited (N/A) All Cash $16 billion $83.50 $83.27 4,528,676 06/30/2014 0.28% 1.31%
+ STSA 09/11/2013 Umpqua Holdings Corporation (UMPQ) Cash Plus Stock $2.0 billion $31.89 $31.81 116,870 06/30/2014 0.25% 1.20%
+ ACCL 01/30/2014 Dassault Syst�mes (N/A) All Cash $750 million $12.50 $12.47 285,884 06/30/2014 0.24% 1.14%
+ KFN 12/16/2013 Kohlberg Kravis Roberts & Co. L.P. (KKR) All Stock $2.6 billion $11.15 $11.13 624,545 06/30/2014 0.21% 1.01%
+ TSH 01/13/2014 IberiaBank Corp. (IBKC) All Stock $161 million $76.59 $76.45 1,295 06/30/2014 0.18% 0.85%
+ TOFC 09/10/2013 Old National Bancorp. (ONB) Cash Plus Stock $107.7 million $23.56 $23.52 1,922 03/31/2014 0.18% 0.00%
+ VOCS 04/07/2014 GTCR Valor Merger Sub, Inc., an affiliate of GTCR LLC (N/A) All Cash $446.5 million $18.00 $17.97 1,344,287 06/30/2014 0.17% 0.79%
+ 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%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.44 $20.41 115,967 09/30/2014 0.15% 0.32%
+ ATMI 02/04/2014 Entegris, Inc. (ENTG) All Cash $1.15 billion $34.00 $33.95 405,490 06/30/2014 0.15% 0.70%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 0.35%
+ ACO 03/06/2014 Minerals Technologies Inc. (MTX) All Cash $1.7 billion $45.75 $45.72 254,121 04/30/2014 0.07% 1.50%
+ WBCO 10/23/2013 Heritage Financial Corp. (HFWA) Cash Plus Stock $265.1 million $17.29 $17.29 49,138 06/30/2014 0.02% 0.07%
+ CHDX 02/17/2014 a buyer consortium (the “Buyer Consortium”) of an affiliate of TPG (together with its affiliates, “TPG”), an affiliate of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun”), and Ms. Roberta Lipson, the CEO of the Company (N/A) All Cash $369 million $19.50 $19.51 195,322 12/31/2014 -0.05% -0.07%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.71 $7.72 160,740 12/31/2014 -0.09% -0.12%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $22.89 $22.94 39,097 06/30/2014 -0.22% -1.03%
+ ARTC 02/03/2014 Smith & Nephew (N/A) All Cash $1.7 billion $48.25 $48.50 221,543 06/30/2014 -0.52% -2.44%
+ ZLC 02/19/2014 Signet Jewelers Limited (SIG) All Cash $1.4 billion $21.00 $21.15 479,695 06/30/2014 -0.71% -3.36%
+ COA 02/27/2014 Essilor International (N/A) All Cash $430 million $11.21 $11.31 79,829 06/30/2014 -0.88% -4.19%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $12.98 $13.22 3,812,229 12/31/2014 -1.81% -2.53%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $6.20 $6.39 34,433 06/30/2014 -2.92% -13.86%

Voluntary Disclosure: I hold a long position in Safeway (SWY).

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




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