Merger Arbitrage Mondays – May 26, 2014

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May 25, 2014 | Merger Arbitrage | | Author Asif

Merger Activity declined with two new mergers announced, and three 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 66
Total Number of Pending Deals
Cash Deals 39
Stock Deals 17
Stock & Cash Deals 10
Total Number of Pending Deals 66
Total Deal Size $301.65 billion

New Deals:

  1. The acquisition of Charm Communications (CHRM) by Engadin Parent Limited in a going private transaction. Under the terms of the agreement, shareholders of Charm Communications will receive US$4.70 in cash per American Depositary Share of the Company (“ADS”, each ADS representing two Class A ordinary shares of the Company).
  2. The acquisition of Aeroflex Holding (ARX) by Cobham plc for $1.46 billion or $10.50 per share in cash.

Closed Deals:

  1. The acquisition of Home Federal Bancorp (HOME) by Cascade Bancorp (CACB) on May 19, 2014. It took 208 days for this deal to be completed.
  2. The acquisition of UNS Energy Corporation (UNS) by Fortis on May 21, 2014. It took 161 days for this deal to be completed.
  3. The acquisition of Pepco Holdings (POM) by Exelon Corporation (EXC) on May 22, 2014. It took 22 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 $2.19 05/31/2014 46.12% 3366.67%
CHTP 05/08/2014 H. Lundbeck A/S (N/A) $7.94 $6.565 09/30/2014 20.94% 60.19%
OVRL 05/15/2014 Sphere 3D Corporation (SPIHF) $4.22 $3.51 09/30/2014 20.30% 58.35%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $4.36 $3.79 03/31/2014 15.07% -98.25%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $83.59 05/31/2015 13.65% 13.47%
LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $24.63 03/31/2015 12.95% 15.30%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $2.50 $2.22 11/15/2014 12.61% 26.61%
RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) $18.50 $16.64 06/30/2014 11.18% 116.57%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $101.02 $91.20 09/30/2014 10.77% 30.96%
DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) $5.85 $5.31 09/30/2014 10.24% 29.44%

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 $2.19 41,950 05/31/2014 46.12% 3366.67%
+ CHTP 05/08/2014 H. Lundbeck A/S (N/A) All Cash $658 million $7.94 $6.565 1,808,981 09/30/2014 20.94% 60.19%
+ OVRL 05/15/2014 Sphere 3D Corporation (SPIHF) All Stock $81.13 million $4.22 $3.51 156,080 09/30/2014 20.30% 58.35%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $4.36 $3.79 70,803 03/31/2014 15.07% 0.00%
+ DTV 05/18/2014 AT&T, Inc. (T) All Cash $48.5 billion $95.00 $83.59 7,391,615 05/31/2015 13.65% 13.47%
+ LIN 03/22/2014 Media General, Inc. (MEG) All Cash $2.6 billion $27.82 $24.63 378,521 03/31/2015 12.95% 15.30%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $2.50 $2.22 304,330 11/15/2014 12.61% 26.61%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $16.64 91,188 06/30/2014 11.18% 116.57%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $101.02 $91.20 951,456 09/30/2014 10.77% 30.96%
+ DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) All Stock N/A $5.85 $5.31 316,581 09/30/2014 10.24% 29.44%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.62 16,985 03/31/2014 9.88% 0.00%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $14.57 59,937 06/12/2014 9.81% 210.73%
+ PF 05/12/2014 The Hillshire Brands Company (HSH) Cash Plus Stock $4.3 billion $36.51 $33.27 2,727,884 09/30/2014 9.74% 27.99%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $149.41 $141.28 864,331 12/31/2014 5.76% 9.60%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) All Cash N/A $36.15 $34.24 1,348,471 12/31/2014 5.58% 9.30%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.90 $3.70 8 12/31/2014 5.45% 9.08%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) All Cash N/A $4.70 $4.47 33,001 09/30/2014 5.15% 14.79%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.88 $21.85 N/A 11/15/2014 4.71% 9.93%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.67 $8.30 152,847 10/31/2014 4.44% 10.26%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.18 $9.80 1,070,981 12/31/2014 3.90% 6.50%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.30 6,850 12/31/2014 3.85% 6.41%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $34.67 $33.50 244,424 12/31/2014 3.50% 5.83%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.25 184,209 07/31/2014 3.43% 18.96%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $21.85 $21.15 203 09/30/2014 3.32% 9.55%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $28.65 24,259 09/30/2014 3.14% 9.03%
+ NINE 01/29/2014 Ninetowns Holdings Limited (“Parent”) (N/A) All Cash N/A $1.80 $1.75 4,553 06/30/2014 2.86% 29.80%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $80.99 $78.91 126,859 09/30/2014 2.63% 7.56%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.42 223,740 06/30/2014 2.63% 27.44%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.78 19,876 08/15/2014 2.52% 11.35%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $24.62 $24.05 108,269 12/31/2014 2.39% 3.98%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.96 69,200 03/31/2014 2.04% 0.00%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.79 788,503 12/31/2014 1.78% 2.97%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.95 1,678 06/30/2014 1.69% 17.68%
+ DLLR 04/02/2014 affiliate of Lone Star Funds (N/A) All Cash $1.3 billion $9.50 $9.38 194,994 09/30/2014 1.28% 3.68%
+ JFBI 01/23/2014 HomeTrust Bancshares, Inc. (HTBI) All Cash $51.2 million $8.00 $7.90 12,636 06/30/2014 1.27% 13.20%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $96.71 $95.57 1,076,582 06/30/2014 1.20% 12.47%
+ CBEY 04/21/2014 Birch Communications, Inc. (N/A) All Cash $323 million $9.97 $9.87 228,040 10/31/2014 1.01% 2.34%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $15.83 $15.67 4,938,911 12/31/2014 1.01% 1.69%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.18 54 03/31/2014 0.97% 0.00%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $21.83 $21.63 10,615 06/30/2014 0.92% 9.54%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $7.04 116,919 09/30/2014 0.85% 2.45%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.57 138,754 06/30/2014 0.67% 6.94%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 4.66%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.91 421,488 09/30/2014 0.43% 1.24%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $18.92 24,864 09/30/2014 0.42% 1.22%
+ TSH 01/13/2014 IberiaBank Corp. (IBKC) All Stock $161 million $72.43 $72.16 1,929 06/30/2014 0.37% 3.87%
+ EPL 03/12/2014 Energy XXI (Bermuda) Limited (EXXI) Cash Plus Stock $2.3 billion $37.86 $37.72 243,979 06/30/2014 0.37% 3.85%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $31.45 $31.34 375,118 09/30/2014 0.34% 0.96%
+ 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%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $86.60 $86.47 73,130 06/30/2014 0.15% 1.62%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $21.34 $21.31 43,564 06/30/2014 0.14% 1.47%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 0.77%
+ VOCS 04/07/2014 GTCR Valor Merger Sub, Inc., an affiliate of GTCR LLC (N/A) All Cash $446.5 million $18.00 $17.99 250,311 06/30/2014 0.06% 0.58%
+ ZIGO 04/11/2014 AMETEK, Inc. (AME) All Cash $280 million $19.25 $19.24 43,122 06/30/2014 0.05% 0.54%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.10 $20.10 118,147 09/30/2014 0.01% 0.04%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.53 729,961 09/30/2014 -0.28% -0.82%
+ 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 52,468 09/30/2014 -0.55% -1.57%
+ ARTC 02/03/2014 Smith & Nephew (N/A) All Cash $1.7 billion $48.25 $48.58 151,706 06/30/2014 -0.68% -7.08%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $6.98 $7.04 168,553 12/31/2014 -0.83% -1.38%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $48.05 $48.50 3,117 09/30/2014 -0.93% -2.68%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $5.91 $6.07 68,692 06/30/2014 -2.65% -27.60%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $11.75 $12.14 115,729 12/31/2014 -3.21% -5.35%
+ ZLC 02/19/2014 Signet Jewelers Limited (SIG) All Cash $1.4 billion $21.00 $21.75 1,162,952 06/30/2014 -3.45% -35.96%
+ FURX 04/28/2014 Forest Laboratories Inc. (FRX) All Cash $1.1 billion $95.00 $104.25 113,246 09/30/2014 -8.87% -25.50%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $18.91 $20.86 24,679 06/30/2014 -9.35% -97.49%
+ 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 $23.79 15,394 12/31/2014 -18.03% -30.05%

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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