Merger Arbitrage Mondays – June 16, 2014

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June 15, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with five 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 77
Total Number of Pending Deals
Cash Deals 28
Stock Deals 17
Stock & Cash Deals 10
Special Conditions 8
Total Number of Pending Deals 63
Total Deal Size $363.07 billion

New Deals:

  1. The acquisition of Idenix Pharmaceuticals (IDIX) by Merck & Co. (MRK) for $3.85 billion or $24.50 per share in cash.
  2. The acquisition of Hittite Microwave Corporation (HITT) by Analog Devices (ADI) for $2 billion or $78.00 per share in cash.
  3. The acquisition of Montage Technology Group Limited (MONT) by Shanghai Pudong Science and Technology Investment Co. for $2 billion or $22.60 per share in cash.
  4. The acquisition of OpenTable (OPEN) by Priceline (PCLN) for $2.6 billion or $103 per share in cash.
  5. The acquisition of Covidien (COV) by Medtronic (MDT) for $42.9 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Covidien will receive $35.19 in cash and 0.956 of an ordinary share of Medtronic plc.

Deal Updates:

  1. On June 12, 2014, Nicholas Financial (NICK) terminated its arrangement agreement with Prospect Capital on the basis that certain conditions requisite to consummation of the Arrangement could not be satisfied by the termination deadline.

Closed Deals:

  1. The acquisition of DFC Global Corp. (DLLR) by an affiliate of Lone Star Funds on June 13, 2014. It took 72 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

PF 05/12/2014 The Hillshire Brands Company (HSH) $48.91 $33.04 09/30/2014 48.03% 165.40%
COV 06/15/2014 Medtronic, Inc. (MDT) $93.22 $72.02 01/31/2015 29.44% 46.92%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $2.50 $1.96 11/15/2014 27.55% 66.16%
CHTP 05/08/2014 H. Lundbeck A/S (N/A) $7.94 $6.555 09/30/2014 21.13% 72.76%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $83.07 05/31/2015 14.36% 15.02%
LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $25.38 03/31/2015 9.61% 12.18%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $3.93 $3.60 12/31/2014 9.22% 17.01%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $97.35 $89.37 09/30/2014 8.93% 30.73%
RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) $18.50 $17.06 06/30/2014 8.44% 220.06%
FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) $23.53 $21.76 11/15/2014 8.12% 19.51%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ PF 05/12/2014 The Hillshire Brands Company (HSH) Cash Plus Stock $4.3 billion $48.91 $33.04 1,398,569 09/30/2014 48.03% 165.40%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $93.22 $72.02 829,914 01/31/2015 29.44% 46.92%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $2.50 $1.96 365,028 11/15/2014 27.55% 66.16%
+ CHTP 05/08/2014 H. Lundbeck A/S (N/A) Special Conditions $658 million $7.94 $6.555 1,086,165 09/30/2014 21.13% 72.76%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $83.07 2,894,576 05/31/2015 14.36% 15.02%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $27.82 $25.38 256,118 03/31/2015 9.61% 12.18%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.93 $3.60 1,006 12/31/2014 9.22% 17.01%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $97.35 $89.37 2,450,705 09/30/2014 8.93% 30.73%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.06 115,925 06/30/2014 8.44% 220.06%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $23.53 $21.76 1,860 11/15/2014 8.12% 19.51%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $20.99 600,262 09/30/2014 7.67% 26.41%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.09 1,749,072 12/31/2014 6.04% 11.14%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $150.85 $142.26 956,972 12/31/2014 6.04% 11.13%
+ OVRL 05/15/2014 Sphere 3D Corporation (SPIHF) All Stock $81.13 million $4.13 $3.90 111,958 09/30/2014 5.92% 20.37%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.31 $9.85 2,270,071 12/31/2014 4.65% 8.57%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.50 25,884 09/30/2014 4.44% 15.30%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $44.23 $42.36 9,041 12/31/2014 4.40% 8.12%
+ DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) All Stock N/A $6.36 $6.10 7,427 09/30/2014 4.23% 14.57%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.71 21,250 03/31/2014 4.09% 0.00%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.46 $21.59 12,690 09/30/2014 4.02% 13.85%
+ IDIX 06/09/2014 Merck & Co. Inc. (MRK) All Cash $3.85 billion $24.50 $23.64 3,386,045 09/30/2014 3.64% 12.53%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.77 4,200 08/15/2014 2.89% 17.57%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.05 3,148 03/31/2014 2.84% 0.00%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $81.51 $79.36 220,389 09/30/2014 2.71% 9.33%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $42.28 $41.17 6,485 12/31/2014 2.70% 4.98%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.91 $8.68 95,686 10/31/2014 2.64% 7.03%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $25.31 $24.67 38,875 12/31/2014 2.60% 4.79%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $28.84 1,006 09/30/2014 2.46% 8.48%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.32 1,157 12/31/2014 2.27% 4.19%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $13.00 $12.72 214,483 12/31/2014 2.20% 4.06%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.76 770,327 12/31/2014 2.04% 3.76%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.44 240,949 06/30/2014 2.03% 53.05%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $6.97 7,298,630 09/30/2014 1.87% 6.42%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.95 5,855 06/30/2014 1.69% 44.19%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $21.75 $21.52 8,787 06/30/2014 1.08% 28.17%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.46 2,050,962 01/31/2015 0.78% 1.24%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $34.67 $34.45 1,044,494 12/31/2014 0.64% 1.18%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $31.45 $31.27 132,615 09/30/2014 0.59% 2.03%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $95.14 $94.58 1,342,582 06/30/2014 0.59% 15.31%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $16.58 $16.50 2,509,244 12/31/2014 0.50% 0.92%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.90 538,991 09/30/2014 0.48% 1.65%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) Special Conditions $296 million $9.00 $8.96 N/A 06/30/2014 0.45% 11.64%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.06 $19.99 39,292 09/30/2014 0.33% 1.13%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $48.49 $48.35 8,430 09/30/2014 0.29% 1.00%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $21.66 $21.61 33,361 06/30/2014 0.24% 6.24%
+ CBEY 04/21/2014 Birch Communications, Inc. (N/A) Special Conditions $323 million $9.97 $9.95 80,852 10/31/2014 0.20% 0.54%
+ 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 $92.47 $92.36 245,298 06/30/2014 0.12% 3.11%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $26.98 N/A 06/30/2014 0.07% 1.93%
+ JOSB 03/11/2014 The Men’s Wearhouse, Inc. (MW) All Cash $1.8 billion $65.00 $64.97 228,517 06/30/2014 0.05% 1.20%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.43 223,587 07/31/2014 0.00% 0.00%
+ HITT 06/09/2014 Analog Devices, Inc. (ADI) All Cash $2 billion $78.00 $78.02 832,764 09/30/2014 -0.03% -0.09%
+ ZIGO 04/11/2014 AMETEK, Inc. (AME) All Cash $280 million $19.25 $19.26 35,303 06/30/2014 -0.05% -1.35%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $10.74 $10.75 3,077,367 12/31/2014 -0.07% -0.13%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.52 330,650 09/30/2014 -0.19% -0.65%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.17 $7.21 41,842 12/31/2014 -0.57% -1.05%
+ 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 $5.50 52,263 09/30/2014 -0.91% -3.13%
+ OPEN 06/13/2014 The Priceline Group Inc. (PCLN) All Cash $2.6 billion $103.00 $104.48 11,041,501 09/30/2014 -1.42% -4.88%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $19.51 20,446 09/30/2014 -2.61% -9.00%
+ PDH 05/28/2014 Flint Hills Resources, LLC (N/A) All Cash $2.1 billion $14.00 $14.39 465,318 12/31/2014 -2.71% -5.00%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $5.90 $6.22 24,171 06/30/2014 -5.09% -132.82%
+ FURX 04/28/2014 Forest Laboratories Inc. (FRX) Special Conditions $1.1 billion $95.00 $104.26 125,059 09/30/2014 -8.88% -30.58%
+ 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 $23.70 25,853 12/31/2014 -17.72% -32.67%

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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