Merger Arbitrage Mondays – April 28, 2014

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April 28, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with two new mergers 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 2014 51
Total Number of Pending Deals
Cash Deals 40
Stock Deals 15
Stock & Cash Deals 11
Total Number of Pending Deals 66
Total Deal Size $235.68 billion

New Deals:

  1. The acquisition of Cbeyond (CBEY) by Birch Communications for $323 million. Cbeyond stockholders will receive between $9.97 and $10.00 per share in cash. The exact amount will be determined based on stock transactions relating to previously granted stock awards to employees that occur after execution of the definitive agreement.
  2. The acquisition of First Financial Service (FFKY) by Community Bank Shares of Indiana (CBIN) for $17.9 million in an all stock deal. Upon completion of the merger, shareholders of First Financial Service will receive 0.153 shares of CBIN common stock. This exchange ratio is subject to adjustment based on conditions related to the book value of First Financial and the ability of the company to gain $3 million from specifically identified special assets.

Closed Deals:

  1. The acquisition of ChinaEdu Corporation (CEDU) by ChinaEdu Holdings Limited (“Holdings”) and ChinaEdu Merger Sub Limited (“Merger Sub”) on April 23, 2014. It took 113 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

EQU 12/09/2013 Petroflow Energy Corporation (N/A) $5.43 $4.54 03/31/2014 19.60% -255.55%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $3.00 $2.53 06/30/2014 18.58% 107.63%
WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) $3.20 $2.721 05/31/2014 17.60% 194.71%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $4.37 $3.74 03/31/2014 16.92% -220.54%
LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $23.86 03/31/2015 16.60% 17.98%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $91.96 $79.05 09/30/2014 16.34% 38.47%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.61 03/31/2014 10.56% -137.64%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $3.93 $3.56 12/31/2014 10.32% 15.26%
FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) $24.05 $21.95 11/15/2014 9.56% 17.37%
HOME 10/23/2013 Cascade Bancorp (CACB) $16.19 $15.03 03/31/2014 7.70% -100.43%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $4.54 205,503 03/31/2014 19.60% 0.00%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $3.00 $2.53 356,194 06/30/2014 18.58% 107.63%
+ WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) All Cash $893.6 million $3.20 $2.721 1,084 05/31/2014 17.60% 194.71%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $4.37 $3.74 62,324 03/31/2014 16.92% 0.00%
+ LIN 03/22/2014 Media General, Inc. (MEG) All Cash $2.6 billion $27.82 $23.86 94,406 03/31/2015 16.60% 17.98%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $91.96 $79.05 3,963,798 09/30/2014 16.34% 38.47%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.61 63,233 03/31/2014 10.56% 0.00%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.93 $3.56 11,410 12/31/2014 10.32% 15.26%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $24.05 $21.95 900 11/15/2014 9.56% 17.37%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $16.19 $15.03 18,461 03/31/2014 7.70% 0.00%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $13.00 $12.20 393 04/30/2014 6.56% 1196.72%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) All Cash N/A $36.15 $34.16 2,628,677 12/31/2014 5.83% 8.61%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.52 224,966 06/30/2014 5.59% 32.41%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $148.64 $140.95 3,587,510 12/31/2014 5.45% 8.06%
+ NINE 01/29/2014 Ninetowns Holdings Limited (“Parent”) (N/A) All Cash N/A $1.80 $1.73 1,219 06/30/2014 4.05% 23.44%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.24 $9.89 1,990,151 12/31/2014 3.56% 5.27%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $35.03 $33.88 1,080,955 12/31/2014 3.40% 5.02%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.40 115,438 06/30/2014 3.24% 18.74%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.78 19,359 08/15/2014 2.52% 8.43%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.73 810,364 12/31/2014 2.30% 3.40%
+ DLLR 04/02/2014 affiliate of Lone Star Funds (N/A) All Cash $1.3 billion $9.50 $9.30 990,139 09/30/2014 2.15% 5.06%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.10 1,800 03/31/2014 2.11% 0.00%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.24 $21.79 2 09/30/2014 2.09% 4.91%
+ JFBI 01/23/2014 HomeTrust Bancshares, Inc. (HTBI) All Cash $51.2 million $8.00 $7.84 329 06/30/2014 2.04% 11.82%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $91.14 $89.50 2,218,989 06/30/2014 1.83% 10.58%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $6.98 492,868 09/30/2014 1.72% 4.05%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $15.73 24,373 04/30/2014 1.72% 313.25%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.65 1,038,010 09/30/2014 1.69% 3.99%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.97 56,205 03/31/2014 1.52% 0.00%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $30.09 $29.65 308,040 09/30/2014 1.47% 3.47%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $49.35 $48.65 5,286 09/30/2014 1.43% 3.38%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $11.75 $11.59 1,035,175 12/31/2014 1.38% 2.04%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.67 $7.57 270,666 12/31/2014 1.36% 2.02%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $22.72 $22.45 4,694 06/30/2014 1.22% 7.07%
+ CBEY 04/21/2014 Birch Communications, Inc. (N/A) All Cash $323 million $9.97 $9.85 1,285,868 10/31/2014 1.22% 2.39%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.97 6,324 06/30/2014 1.01% 5.85%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $17.40 $17.23 4,223 06/30/2014 0.99% 5.72%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.42 518,273 06/30/2014 0.90% 5.22%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.14 $19.98 203,308 09/30/2014 0.81% 1.91%
+ EPL 03/12/2014 Energy XXI (Bermuda) Limited (EXXI) Cash Plus Stock $2.3 billion $39.07 $38.81 688,208 06/30/2014 0.68% 3.94%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $81.82 $81.44 209,455 06/30/2014 0.47% 2.72%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 2.59%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.00 270,918 12/31/2014 0.42% 0.62%
+ LCAV 02/13/2014 PhotoMedex, Inc. (PHMD) All Cash $106.4 million $5.37 $5.35 1,266,756 06/30/2014 0.37% 2.17%
+ TSH 01/13/2014 IberiaBank Corp. (IBKC) All Stock $161 million $73.64 $73.38 9,722 06/30/2014 0.35% 2.02%
+ ZIGO 04/11/2014 AMETEK, Inc. (AME) All Cash $280 million $19.25 $19.19 353,266 06/30/2014 0.31% 1.81%
+ VOCS 04/07/2014 GTCR Valor Merger Sub, Inc., an affiliate of GTCR LLC (N/A) All Cash $446.5 million $18.00 $17.95 328,879 06/30/2014 0.28% 1.61%
+ TOFC 09/10/2013 Old National Bancorp. (ONB) Cash Plus Stock $107.7 million $23.60 $23.54 N/A 03/31/2014 0.25% 0.00%
+ ACCL 01/30/2014 Dassault Syst�mes (N/A) All Cash $750 million $12.50 $12.48 266,369 06/30/2014 0.16% 0.93%
+ WBCO 10/23/2013 Heritage Financial Corp. (HFWA) Cash Plus Stock $265.1 million $17.18 $17.15 20,842 06/30/2014 0.16% 0.91%
+ 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%
+ LSI 12/16/2013 Avago Technologies Limited (AVGO) All Cash $6.6 billion $11.15 $11.14 6,319,830 06/30/2014 0.09% 0.52%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 0.43%
+ KFN 12/16/2013 Kohlberg Kravis Roberts & Co. L.P. (KKR) All Stock $2.6 billion $11.84 $11.83 546,028 06/30/2014 0.06% 0.35%
+ ATMI 02/04/2014 Entegris, Inc. (ENTG) All Cash $1.15 billion $34.00 $33.98 224,719 06/30/2014 0.06% 0.34%
+ BEAM 01/13/2014 Suntory Holdings Limited (N/A) All Cash $16 billion $83.50 $83.46 1,395,616 06/30/2014 0.05% 0.28%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $5.88 $5.88 31,281 06/30/2014 0.02% 0.12%
+ 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 $5.45 231,957 09/30/2013 0.00% 0.00%
+ UBNK 11/15/2013 Rockville Financial Inc. (RCKB) All Stock $369 million $17.77 $17.78 35,100 06/30/2014 -0.06% -0.34%
+ ACO 03/06/2014 Minerals Technologies Inc. (MTX) All Cash $1.7 billion $45.75 $45.78 245,009 05/02/2014 -0.07% -5.98%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $13.58 $13.60 3,433,047 12/31/2014 -0.12% -0.17%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $21.85 $21.95 28,046 06/30/2014 -0.46% -2.69%
+ ARTC 02/03/2014 Smith & Nephew (N/A) All Cash $1.7 billion $48.25 $48.55 522,839 06/30/2014 -0.62% -3.58%
+ COA 02/27/2014 Essilor International (N/A) All Cash $430 million $11.21 $11.29 21,072 06/30/2014 -0.71% -4.11%
+ ZLC 02/19/2014 Signet Jewelers Limited (SIG) All Cash $1.4 billion $21.00 $21.27 696,032 06/30/2014 -1.27% -7.35%
+ 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 $23.68 185,899 12/31/2014 -17.65% -26.08%

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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