Merger Arbitrage Mondays – May 5, 2014

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May 4, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with six new mergers announced, and eight 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 59
Total Number of Pending Deals
Cash Deals 39
Stock Deals 14
Stock & Cash Deals 10
Total Number of Pending Deals 63
Total Deal Size $246.08 billion

New Deals:

  1. The acquisition of Susser Holdings Corporation (SUSS) by Energy Transfer Partners (ETP) for $1.8 billion in a cash or stock deal. Under the terms of the agreement, shareholders of Susser Holdings Corporation can elect to receive either $80.25 in cash or 1.4506 ETP common units, or a combination of both, for each share held. The shareholder election is subject to proration to ensure that aggregate cash paid and common units issued will each represent 50% of the aggregate merger consideration.
  2. The acquisition of Furiex Pharmaceuticals (FURX) by Forest Laboratories (FRX) for $1.1 billion or $95.00 per share in cash and up to $30 per share (approximately $360 million in aggregate) in a Contingent Value Right (CVR) that may be payable based on the status of eluxadoline, Furiex’s lead product, as a controlled drug following approval.
  3. The acquisition of Orbital Sciences (ORB) by Alliant Techsystems (ATK) for $5 billion in an all stock deal. Under the terms of the agrement, shareholders of Orbital Sciences will receive 0.449 shares of Alliant Techsystems common stock for each share of Orbital common stock held. Before the completion of the merger, there will be a spin-off from ATK of its Sporting Goods. We are not including this deal in our Merger Arbitrage tool.
  4. The acquisition of Omniamerican Bancorp (OABC) by Southside Bancshares (SBSI) for $307 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Omniamerican Bancorp will receive 0.4459 shares of Southside common stock plus $13.125 in cash for each outstanding share of OmniAmerican common stock.
  5. The acquisition of PokerTek (PTEK) by Multimedia Games for $1.35 per share in cash.
  6. The acquisition of Pepco Holdings (POM) by Exelon Corporation (EXC) for $7.2 billion or $27.25 per share in cash.

Closed Deals:

  1. The acquisition of Coastal Contacts (COA) by Essilor International on April 28, 2014. It took 60 days for this deal to be completed.
  2. The acquisition of Tower Financial Corporation (TOFC) by Old National Bancorp (ONB) on April 28, 2014. It took 230 days for this deal to be completed.
  3. The acquisition of Accelrys (ACCL) by Dassault Systèmes on April 29, 2014. It took 89 days for this deal to be completed.
  4. The acquisition of United Financial Bancorp (UBNK) by Rockville Financial (RCKB) on April 30, 2014. It took 166 days for this deal to be completed.
  5. The acquisition of KKR Financial Holdings (KFN) by Kohlberg Kravis Roberts & Co. L.P.(KKR) on April 30, 2014. It took 135 days for this deal to be completed.
  6. The acquisition of Washington Banking (WBCO) by Heritage Financial (HFWA) on May 1, 2014. It took 190 days for this deal to be completed.
  7. The acquisition of ATMI Inc. (ATMI) by Entegris (ENTG) on May 1, 2014. It took 86 days for this deal to be completed.
  8. The acquisition of Beam Inc. (BEAM) by Suntory Holdings Limited on May 2, 2014. t took 109 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 $2.66 05/31/2014 20.30% 284.99%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $4.41 $3.73 03/31/2014 18.15% -189.28%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $3.00 $2.58 06/30/2014 16.28% 106.10%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $96.23 $83.05 09/30/2014 15.88% 39.15%
RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) $18.50 $16.43 06/30/2014 12.60% 82.12%
HOME 10/23/2013 Cascade Bancorp (CACB) $16.71 $15.08 03/31/2014 10.80% -112.59%
LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $25.25 03/31/2015 10.18% 11.26%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.63 03/31/2014 9.20% -95.97%
FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) $24.05 $22.10 11/15/2014 8.82% 16.59%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $4.03 $3.71 12/31/2014 8.50% 12.93%

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 $2.66 33,840 05/31/2014 20.30% 284.99%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $4.41 $3.73 17,940 03/31/2014 18.15% 0.00%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $3.00 $2.58 381,684 06/30/2014 16.28% 106.10%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $96.23 $83.05 2,014,573 09/30/2014 15.88% 39.15%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $16.43 339,209 06/30/2014 12.60% 82.12%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $16.71 $15.08 29,398 03/31/2014 10.80% 0.00%
+ LIN 03/22/2014 Media General, Inc. (MEG) All Cash $2.6 billion $27.82 $25.25 740,109 03/31/2015 10.18% 11.26%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.63 47,408 03/31/2014 9.20% 0.00%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $24.05 $22.10 5,480 11/15/2014 8.82% 16.59%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $4.03 $3.71 5,600 12/31/2014 8.50% 12.93%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $13.00 $12.21 50 04/30/2014 6.47% 0.00%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) All Cash N/A $36.15 $34.18 1,106,007 12/31/2014 5.76% 8.77%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $149.59 $142.13 1,630,777 12/31/2014 5.25% 7.98%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.18 1,312,799 03/31/2014 4.83% 0.00%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.03 $21.22 33,189 09/30/2014 3.82% 9.43%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.3050 168,882 12/31/2014 3.45% 5.24%
+ NINE 01/29/2014 Ninetowns Holdings Limited (“Parent”) (N/A) All Cash N/A $1.80 $1.74 601 06/30/2014 3.45% 22.48%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $81.23 $78.72 703,502 09/30/2014 3.19% 7.87%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.23 $9.93 2,161,233 12/31/2014 3.07% 4.67%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.41 63,000 06/30/2014 2.93% 19.11%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $24.91 $24.28 410,284 12/31/2014 2.61% 3.97%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.73 723,503 12/31/2014 2.30% 3.50%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $15.66 15,027 04/30/2014 2.17% 0.00%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.79 11,750 08/15/2014 2.15% 7.70%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $35.03 $34.31 286,068 12/31/2014 2.10% 3.19%
+ JFBI 01/23/2014 HomeTrust Bancshares, Inc. (HTBI) All Cash $51.2 million $8.00 $7.84 6,172 06/30/2014 2.04% 13.30%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.11 927 03/31/2014 1.97% 0.00%
+ DLLR 04/02/2014 affiliate of Lone Star Funds (N/A) All Cash $1.3 billion $9.50 $9.325 1,043,279 09/30/2014 1.88% 4.63%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $92.93 $91.51 1,939,038 06/30/2014 1.56% 10.14%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $11.75 $11.58 306,891 12/31/2014 1.47% 2.23%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.72 1,792,234 09/30/2014 1.35% 3.33%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.96 1,250 06/30/2014 1.35% 8.81%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $17.56 $17.33 3,295 06/30/2014 1.33% 8.65%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.49 $7.39 67,228 12/31/2014 1.30% 1.98%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $22.76 $22.47 9,828 06/30/2014 1.30% 8.47%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $7.01 362,754 09/30/2014 1.28% 3.17%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.98 23,355 03/31/2014 1.01% 0.00%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.98 14,347,619 09/30/2015 1.00% 0.71%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $14.49 $14.37 3,228,392 12/31/2014 0.83% 1.26%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $29.97 $29.78 215,420 09/30/2014 0.65% 1.59%
+ EPL 03/12/2014 Energy XXI (Bermuda) Limited (EXXI) Cash Plus Stock $2.3 billion $38.61 $38.37 629,284 06/30/2014 0.62% 4.02%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.06 $19.94 119,416 09/30/2014 0.58% 1.43%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.66 149,150 06/30/2014 0.53% 3.43%
+ CBEY 04/21/2014 Birch Communications, Inc. (N/A) All Cash $323 million $9.97 $9.92 650,002 10/31/2014 0.50% 1.03%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 2.91%
+ ZIGO 04/11/2014 AMETEK, Inc. (AME) All Cash $280 million $19.25 $19.17 122,888 06/30/2014 0.42% 2.72%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $88.38 $88.04 211,205 06/30/2014 0.38% 2.48%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.11 366,606 12/31/2014 0.23% 0.35%
+ VOCS 04/07/2014 GTCR Valor Merger Sub, Inc., an affiliate of GTCR LLC (N/A) All Cash $446.5 million $18.00 $17.96 423,788 06/30/2014 0.22% 1.45%
+ 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%
+ TSH 01/13/2014 IberiaBank Corp. (IBKC) All Stock $161 million $73.29 $73.21 9,503 06/30/2014 0.11% 0.69%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 0.48%
+ ACO 03/06/2014 Minerals Technologies Inc. (MTX) All Cash $1.7 billion $45.75 $45.73 244,638 05/02/2014 0.04% 0.00%
+ LSI 12/16/2013 Avago Technologies Limited (AVGO) All Cash $6.6 billion $11.15 $11.15 6,017,684 06/30/2014 0.00% 0.00%
+ LCAV 02/13/2014 PhotoMedex, Inc. (PHMD) All Cash $106.4 million $5.37 $5.37 130,158 06/30/2014 0.00% 0.00%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $47.48 $47.65 5,239 09/30/2014 -0.37% -0.90%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $21.38 $21.46 32,717 06/30/2014 -0.38% -2.47%
+ ARTC 02/03/2014 Smith & Nephew (N/A) All Cash $1.7 billion $48.25 $48.48 993,120 06/30/2014 -0.47% -3.09%
+ 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 $5.49 29,740 09/30/2013 -0.73% 1.23%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $5.93 $6.00 19,480 06/30/2014 -1.15% -7.47%
+ ZLC 02/19/2014 Signet Jewelers Limited (SIG) All Cash $1.4 billion $21.00 $21.26 411,116 06/30/2014 -1.22% -7.97%
+ FURX 04/28/2014 Forest Laboratories Inc. (FRX) All Cash $1.1 billion $95.00 $103.20 524,733 09/30/2014 -7.95% -19.60%
+ 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 47,811 12/31/2014 -18.07% -27.48%

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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