Merger Arbitrage Mondays – May 19, 2014

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May 18, 2014 | Merger Arbitrage | | Author Asif

Merger Activity remained the same 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 62
Total Number of Pending Deals
Cash Deals 39
Stock Deals 16
Stock & Cash Deals 11
Special Conditions 1
Total Number of Pending Deals 67
Total Deal Size $300.11 billion

New Deals:

  1. The acquisition of Pinnacle Foods (PF) by The Hillshire Brands Company (HSH) for $4.3 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Pinnacle Foods will receive $18.00 in cash for each share held, along with Hillshire common stock at a fixed exchange ratio of 0.50 Hillshire shares for each Pinnacle share.
  2. The acquisition of Digital Cinema Destinations (DCIN) by Carmike Cinemas (CKEC) in an all stock deal. Under the terms of the agreement, shareholders of Digital Cinema Destinations will receive 0.1775 shares (subject to certain potential reductions) of Carmike common stock.
  3. The acquisition of DIRECTV (DTV) by AT&T, Inc. (T) in a stock and cash deal valued at $48.5 billion. Under the terms of the agreement, DIRECTV shareholders will receive $95.00 per share under the terms of the merger, comprised of $28.50 per share in cash and $66.50 per share in AT&T stock. The stock portion will be subject to a collar such that DIRECTV shareholders will receive 1.905 AT&T shares if AT&T stock price is below $34.90 at closing and 1.724 AT&T shares if AT&T stock price is above $38.58 at closing. If AT&T stock price at closing is between $34.90 and $38.58, DIRECTV shareholders will receive a number of shares between 1.724 and 1.905, equal to $66.50 in value. On account of the collar, we are treating this deal as an all cash deal.

Closed Deals:

  1. The acquisition of LCA-Vision (LCAV) by PhotoMedex (PHMD) on May 13, 2014. It took 89 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 $2.31 05/31/2014 38.53% 1171.90%
CHTP 05/08/2014 H. Lundbeck A/S (N/A) $7.94 $6.55 09/30/2014 21.22% 57.80%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $3.92 $3.30 03/31/2014 18.89% -140.69%
DTV 05/18/2014 AT&T, Inc. (T) $98.49 $86.18 05/31/2015 14.28% 13.83%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $2.50 $2.21 11/15/2014 13.12% 26.61%
LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $24.84 03/31/2015 12.00% 13.86%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $100.74 $90.02 09/30/2014 11.91% 32.43%
RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) $18.50 $16.69 06/30/2014 10.84% 94.25%
NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) $16.00 $14.54 04/30/2014 10.04% -192.90%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.62 03/31/2014 9.88% -73.57%

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 $2.31 102,846 05/31/2014 38.53% 1171.90%
+ CHTP 05/08/2014 H. Lundbeck A/S (N/A) All Cash $658 million $7.94 $6.55 4,472,129 09/30/2014 21.22% 57.80%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $3.92 $3.30 55,505 03/31/2014 18.89% 0.00%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $98.49 $86.18 5,209,608 05/31/2015 14.28% 13.83%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $2.50 $2.21 425,652 11/15/2014 13.12% 26.61%
+ LIN 03/22/2014 Media General, Inc. (MEG) All Cash $2.6 billion $27.82 $24.84 493,027 03/31/2015 12.00% 13.86%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $100.74 $90.02 1,872,473 09/30/2014 11.91% 32.43%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $16.69 53,956 06/30/2014 10.84% 94.25%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $14.54 20,719 04/30/2014 10.04% 0.00%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.62 34,050 03/31/2014 9.88% 0.00%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.98 $3.65 3,350 12/31/2014 8.99% 14.51%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.49 $8.00 674,249 10/31/2014 6.13% 13.57%
+ PF 05/12/2014 The Hillshire Brands Company (HSH) Cash Plus Stock $4.3 billion $36.31 $34.28 1,578,657 09/30/2014 5.92% 16.13%
+ DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) All Stock N/A $5.72 $5.40 347,782 09/30/2014 5.88% 16.00%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $144.30 $136.68 1,555,687 12/31/2014 5.57% 9.00%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $13.00 $12.34 1,750 04/30/2014 5.35% 0.00%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) All Cash N/A $36.15 $34.45 1,965,334 12/31/2014 4.93% 7.97%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $16.00 $15.29 40,133 03/31/2014 4.67% 0.00%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $34.30 $32.84 583,365 12/31/2014 4.45% 7.19%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.20 115,525 03/31/2014 4.42% 0.00%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $9.96 $9.56 5,512,014 12/31/2014 4.21% 6.80%
+ NINE 01/29/2014 Ninetowns Holdings Limited (“Parent”) (N/A) All Cash N/A $1.80 $1.73 N/A 06/30/2014 4.05% 35.16%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.88 $22.00 155 11/15/2014 3.99% 8.10%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.30 43,182 12/31/2014 3.85% 6.21%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $28.56 594 09/30/2014 3.47% 9.44%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $81.45 $78.86 474,102 09/30/2014 3.29% 8.95%
+ DLLR 04/02/2014 affiliate of Lone Star Funds (N/A) All Cash $1.3 billion $9.50 $9.21 914,830 09/30/2014 3.15% 8.58%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.41 76,111 06/30/2014 2.93% 25.49%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.78 N/A 08/15/2014 2.52% 10.44%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $24.69 $24.15 101,694 12/31/2014 2.24% 3.62%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.94 3,669 06/30/2014 2.04% 17.74%
+ JFBI 01/23/2014 HomeTrust Bancshares, Inc. (HTBI) All Cash $51.2 million $8.00 $7.85 320 06/30/2014 1.91% 16.61%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.78 378,521 12/31/2014 1.87% 3.02%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $21.88 $21.48 31,707 06/30/2014 1.84% 15.99%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $94.64 $93.28 2,341,053 06/30/2014 1.46% 12.67%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.15 N/A 03/31/2014 1.40% 0.00%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.973 109,795 03/31/2014 1.37% 0.00%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $20.37 $20.14 6,645 06/30/2014 1.14% 9.92%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $7.02 285,268 09/30/2014 1.14% 3.10%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $14.72 $14.59 1,996,155 12/31/2014 0.91% 1.48%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $21.48 $21.31 29,584 09/30/2014 0.79% 2.16%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $18.86 23,188 09/30/2014 0.74% 2.02%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $29.68 $29.48 409,290 09/30/2014 0.67% 1.83%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.89 312,273 09/30/2014 0.53% 1.43%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $83.53 $83.12 115,626 06/30/2014 0.49% 4.30%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.69 250,967 06/30/2014 0.48% 4.16%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 3.88%
+ CBEY 04/21/2014 Birch Communications, Inc. (N/A) All Cash $323 million $9.97 $9.93 453,956 10/31/2014 0.40% 0.89%
+ EPL 03/12/2014 Energy XXI (Bermuda) Limited (EXXI) Cash Plus Stock $2.3 billion $37.42 $37.27 208,320 06/30/2014 0.39% 3.39%
+ TSH 01/13/2014 IberiaBank Corp. (IBKC) All Stock $161 million $71.59 $71.33 22,944 06/30/2014 0.37% 3.18%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $46.51 $46.38 6,294 09/30/2014 0.29% 0.79%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.12 $20.07 29,751 09/30/2014 0.25% 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% 0.00%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 0.64%
+ VOCS 04/07/2014 GTCR Valor Merger Sub, Inc., an affiliate of GTCR LLC (N/A) All Cash $446.5 million $18.00 $17.99 342,029 06/30/2014 0.06% 0.48%
+ ZIGO 04/11/2014 AMETEK, Inc. (AME) All Cash $280 million $19.25 $19.25 86,025 06/30/2014 0.00% 0.00%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.31 178,090 12/31/2014 -0.10% -0.16%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $20.88 $20.90 38,279 06/30/2014 -0.11% -0.95%
+ 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 $5.47 33,041 09/30/2013 -0.37% 0.00%
+ ARTC 02/03/2014 Smith & Nephew (N/A) All Cash $1.7 billion $48.25 $48.53 249,565 06/30/2014 -0.58% -5.01%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.60 6,838,225 09/30/2015 -1.27% -0.93%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $5.72 $5.79 20,452 06/30/2014 -1.28% -11.16%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.04 $7.20 51,248 12/31/2014 -2.16% -3.49%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $11.75 $12.36 445,154 12/31/2014 -4.94% -7.97%
+ ZLC 02/19/2014 Signet Jewelers Limited (SIG) All Cash $1.4 billion $21.00 $22.29 691,789 06/30/2014 -5.79% -50.29%
+ FURX 04/28/2014 Forest Laboratories Inc. (FRX) All Cash $1.1 billion $95.00 $103.84 266,467 09/30/2014 -8.51% -23.19%
+ 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 $23.80 73,311 12/31/2014 -18.07% -29.18%

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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