Merger Arbitrage Mondays – May 12, 2014

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May 11, 2014 | Merger Arbitrage | | Author Asif

Merger Activity decreased last week with three 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 60
Total Number of Pending Deals
Cash Deals 41
Stock Deals 15
Stock & Cash Deals 10
Total Number of Pending Deals 66
Total Deal Size $247.31 billion

New Deals:

  1. The acquisition of SP Bancorp (SPBC) by Green Bank for $46.2 million or $29.55 per share in cash.
  2. The acquisition of 1st United Bancorp (FUBC) by Valley National Bancorp (VLY) for $312 million in an all stock deal. Under the terms of the agreement, shareholders of 1st United Bancorp will receive 0.89 shares of Valley National Bancorp common stock for each share of 1st United common stock. In the event Valley’s average share price during the 20 business day period ending 5 days prior to closing is less than $8.09, then Valley will increase the 0.89 exchange ratio so that 1st United shareholders receive $7.20 in Valley common stock or $7.20 in Valley common stock and cash for each 1st United share they hold. In the event Valley’s average share price during the 20 business day period ending 5 days prior to closing is greater than $12.13, then Valley will decrease the 0.89 exchange ratio so that 1st United shareholders receive $10.80 in Valley common stock for each 1st United share they hold.
  3. The acquisition of Chelsea Therapeutics International (CHTP) by H. Lundbeck A/S for $658 million. Under the terms of the agreement, shareholders of Chelsea Therapeutics International will receive $6.44 per share in cash and CVRs that may pay up to $1.50, for a total potential consideration of up to $7.94 per share.

Deal Updates:

  1. On May 9, 2014, Tower Group (TWGP) revised its merger terms with ACP Re. Tower Group’s shareholders will now receive $2.50 in cash compared to the prior agreement of $3.00 per share cash payment.The time limit for finalization of merger has been extended to November 15, 2014.

Closed Deals:

  1. The acquisition of LSI Corporation (LSI) by Avago Technologies Limited (AVGO) on May 6, 2014. It took 141 days for this deal to be completed.

Top 10 deals with the 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 $2.63 05/31/2014 21.67% 416.35%
CHTP 05/08/2014 H. Lundbeck A/S (N/A) $7.94 $6.57 09/30/2014 20.85% 53.98%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $3.86 $3.35 03/31/2014 15.18% -131.92%
LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $24.46 03/31/2015 13.74% 15.52%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $2.50 $2.24 11/15/2014 11.61% 22.66%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $3.97 $3.61 12/31/2014 10.07% 15.77%
RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) $18.50 $16.81 06/30/2014 10.05% 74.89%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $95.57 $87.34 09/30/2014 9.42% 24.39%
NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) $16.00 $14.71 04/30/2014 8.77% -266.74%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.64 03/31/2014 8.54% -74.19%

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 $2.63 10,892 05/31/2014 21.67% 416.35%
+ CHTP 05/08/2014 H. Lundbeck A/S (N/A) All Cash $658 million $7.94 $6.57 10,562,235 09/30/2014 20.85% 53.98%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $3.86 $3.35 13,777 03/31/2014 15.18% 0.00%
+ LIN 03/22/2014 Media General, Inc. (MEG) All Cash $2.6 billion $27.82 $24.46 111,025 03/31/2015 13.74% 15.52%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $2.50 $2.24 1,016,475 11/15/2014 11.61% 22.66%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.97 $3.61 10,855 12/31/2014 10.07% 15.77%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $16.81 93,780 06/30/2014 10.05% 74.89%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $95.57 $87.34 911,565 09/30/2014 9.42% 24.39%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $14.71 33,263 04/30/2014 8.77% 0.00%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.64 63,051 03/31/2014 8.54% 0.00%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $16.17 $15.05 13,715 03/31/2014 7.45% 0.00%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.62 $8.09 1,923,038 10/31/2014 6.49% 13.78%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $13.00 $12.22 11,271 04/30/2014 6.38% 0.00%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $146.63 $138.88 1,461,726 12/31/2014 5.58% 8.74%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) All Cash N/A $36.15 $34.29 1,161,633 12/31/2014 5.42% 8.50%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $23.18 $22.15 1,100 11/15/2014 4.65% 9.08%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.08 $21.30 33,824 09/30/2014 3.68% 9.53%
+ JFBI 01/23/2014 HomeTrust Bancshares, Inc. (HTBI) All Cash $51.2 million $8.00 $7.72 29,766 06/30/2014 3.63% 27.02%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $28.52 2,457 09/30/2014 3.61% 9.35%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $34.47 $33.29 1,306,785 12/31/2014 3.55% 5.57%
+ NINE 01/29/2014 Ninetowns Holdings Limited (“Parent”) (N/A) All Cash N/A $1.80 $1.74 14,100 06/30/2014 3.45% 25.69%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $81.41 $78.73 645,065 09/30/2014 3.40% 8.80%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.20 $9.87 8,138,147 12/31/2014 3.33% 5.22%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.31 19,239 12/31/2014 3.05% 4.78%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.41 29,540 06/30/2014 2.93% 21.84%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.28 200,484 03/31/2014 2.84% 0.00%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $25.22 $24.58 186,196 12/31/2014 2.59% 4.06%
+ DLLR 04/02/2014 affiliate of Lone Star Funds (N/A) All Cash $1.3 billion $9.50 $9.26 229,541 09/30/2014 2.59% 6.71%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.78 16,201 08/15/2014 2.52% 9.67%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.72 2,061,147 12/31/2014 2.39% 3.74%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.13 200 03/31/2014 1.68% 0.00%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $90.90 $89.50 1,704,303 06/30/2014 1.56% 11.63%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.97 12,977 03/31/2014 1.52% 0.00%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $22.22 $21.90 13,568 06/30/2014 1.48% 11.03%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.96 5,905 06/30/2014 1.35% 10.07%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $7.01 160,434 09/30/2014 1.28% 3.32%
+ TSH 01/13/2014 IberiaBank Corp. (IBKC) All Stock $161 million $72.06 $71.42 918 06/30/2014 0.89% 6.63%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.83 838,859 09/30/2014 0.82% 2.11%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $29.32 $29.12 607,433 09/30/2014 0.68% 1.75%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $18.88 25,446 09/30/2014 0.64% 1.65%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.60 184,649 06/30/2014 0.62% 4.61%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $14.72 $14.65 2,675,668 12/31/2014 0.50% 0.78%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 3.33%
+ EPL 03/12/2014 Energy XXI (Bermuda) Limited (EXXI) Cash Plus Stock $2.3 billion $37.60 $37.44 370,295 06/30/2014 0.43% 3.23%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $83.24 $82.96 90,406 06/30/2014 0.33% 2.49%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.17 $20.11 134,297 09/30/2014 0.32% 0.83%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.28 $7.26 156,378 12/31/2014 0.23% 0.35%
+ ZIGO 04/11/2014 AMETEK, Inc. (AME) All Cash $280 million $19.25 $19.22 47,242 06/30/2014 0.16% 1.16%
+ 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%
+ VOCS 04/07/2014 GTCR Valor Merger Sub, Inc., an affiliate of GTCR LLC (N/A) All Cash $446.5 million $18.00 $17.98 469,351 06/30/2014 0.11% 0.83%
+ CBEY 04/21/2014 Birch Communications, Inc. (N/A) All Cash $323 million $9.97 $9.96 530,201 10/31/2014 0.10% 0.21%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 0.55%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $19.51 $19.50 2,792 06/30/2014 0.05% 0.38%
+ ACO 03/06/2014 Minerals Technologies Inc. (MTX) All Cash $1.7 billion $45.75 $45.74 1,646,754 05/02/2014 0.02% 0.00%
+ LCAV 02/13/2014 PhotoMedex, Inc. (PHMD) All Cash $106.4 million $5.37 $5.37 217,438 06/30/2014 0.00% 0.00%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.37 197,617 12/31/2014 -0.20% -0.31%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $47.22 $47.43 8,477 09/30/2014 -0.45% -1.17%
+ 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 $5.48 153,843 09/30/2013 -0.55% 0.00%
+ ARTC 02/03/2014 Smith & Nephew (N/A) All Cash $1.7 billion $48.25 $48.54 360,750 06/30/2014 -0.60% -4.45%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $21.37 $21.54 37,880 06/30/2014 -0.78% -5.80%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.57 3,914,453 09/30/2015 -1.16% -0.84%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $5.85 $5.96 58,122 06/30/2014 -1.85% -13.75%
+ ZLC 02/19/2014 Signet Jewelers Limited (SIG) All Cash $1.4 billion $21.00 $21.85 2,897,255 06/30/2014 -3.89% -28.98%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $11.75 $12.41 341,604 12/31/2014 -5.32% -8.33%
+ FURX 04/28/2014 Forest Laboratories Inc. (FRX) All Cash $1.1 billion $95.00 $103.64 485,837 09/30/2014 -8.34% -21.58%
+ 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 $23.76 17,136 12/31/2014 -17.93% -28.09%

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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