Merger Arbitrage Mondays – June 30, 2014

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June 29, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with six 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 80
Total Number of Deals Not Completed in 2014 1
Total Number of Pending Deals
Cash Deals 31
Stock Deals 18
Stock & Cash Deals 11
Special Conditions 7
Total Number of Pending Deals 67
Total Deal Size $383.12 billion

New Deals:

  1. The acquisition of Integrys Energy Group (TEG) by Wisconsin Energy (WEC) for $9.1 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Integrys Energy Group will receive common stock at a fixed exchange ratio of 1.128 Wisconsin Energy shares plus $18.50 in cash per Integrys share.
  2. The acquisition of PLX Technology (PLXT) by Avago Technologies Limited (AVGO) for $293 million or $6.50 per share in cash.
  3. The acquisition of MICROS Systems (MCRS) by Oracle Corporation (ORCL) for $4.6 billion or $68.00 per share in cash.
  4. The acquisition of Georgia Carolina Bancshares (GECR) by State Bank Financial Corporation (STBZ) for $82 million. The exchange ratio will depend on the average closing price of State Bank’s common stock during the twenty trading day period ending five business days before the closing of the transaction (the “Final State Bank Price”). If the Final State Bank Price is above $14.00 but below $17.00, the exchange ratio will be equal to $13.50 divided by the Final State Bank Price. If the Final State Bank Price is at or above $17.00, the exchange ratio will be 0.794. If the Final State Bank Price is at or below $14.00, the exchange ratio will be 0.964.
  5. The acquisition of Medical Action Industries (MDCI) by Owens & Minor (OMI) for $208 million or $13.80 per share in cash.
  6. The acquisition of Auxilium Pharmaceuticals (AUXL) by QLT Inc. (QLTI) in an all stock deal. Under the terms of the agreement, shareholders of Auxilium Pharmaceuticals will receive 3.1359 QLT common shares. Upon consummation of the Merger, each outstanding share of Auxilium common stock, other than shares owned by Auxilium, QLT, HoldCo or AcquireCo, will be converted into the right to receive 3.1359 QLT common shares (the “Equity Exchange Ratio“), subject to adjustment as described in the immediately following sentence. If at or immediately after the effective time of the Merger, QLT receives an aggregate cash consideration pursuant to any sale, license, sublicense or similar transaction related to its proprietary synthetic retinoid product in development known as “QLT091001″, which is:

(a)   less than $25 million but equal to or greater than $20 million then, the Equity Exchange Ratio shall be increased by 0.0192;

(b)   less than $20 million but equal to or greater than $15 million, then the Equity Exchange Ratio shall be increased by 0.0385;

(c)   less than $15 million but equal to or greater than $10 million, then the Equity Exchange Ration shall be increased by 0.0577;

(d)   less than $10 million but equal to or greater than $5 million, then the Equity Exchange Ratio shall be increased by 0.0770; or

(e)   less than $5 million, or in the event that no such transaction is consummated at or immediately after the effective time of the Merger, then the Equity Exchange Ratio shall be increased by 0.0962.

Upon completion of the Merger, Auxilium stockholders will own approximately 76% of the outstanding common shares of the Combined Company on a fully diluted basis and current QLT stockholders will own approximately 24% of the outstanding common shares of the Combined Company on a fully diluted basis, subject to certain adjustments.

Closed Deals:

  1. The acquisition of Chelsea Therapeutics International (CHTP) by H. Lundbeck A/S on June 24, 2014. It took 47 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

TWGP 01/06/2014 ACP Re Ltd. (N/A) $2.50 $2.025 11/15/2014 23.46% 62.04%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $84.59 05/31/2015 12.31% 13.41%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $4.00 $3.64 12/31/2014 9.96% 19.75%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $100.10 $91.35 09/30/2014 9.58% 38.00%
MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) $22.60 $20.64 09/30/2014 9.50% 37.67%
RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) $18.50 $17.13 06/30/2014 8.00% 0.00%
COV 06/15/2014 Medtronic, Inc. (MDT) $96.49 $90.43 01/31/2015 6.70% 11.37%
HCBK 08/27/2012 M&T Bank Corporation (MTB) $10.43 $9.86 12/31/2014 5.78% 11.46%
SWY 03/06/2014 AB Acquisition LLC (N/A) $36.15 $34.29 12/31/2014 5.42% 10.76%
TWC 02/13/2014 Comcast Corporation (CMCSA) $155.62 $147.84 12/31/2014 5.26% 10.44%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $2.50 $2.025 4,738,682 11/15/2014 23.46% 62.04%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $84.59 2,853,559 05/31/2015 12.31% 13.41%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $4.00 $3.64 200 12/31/2014 9.96% 19.75%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $100.10 $91.35 3,846,303 09/30/2014 9.58% 38.00%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $20.64 173,934 09/30/2014 9.50% 37.67%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.13 161,097 06/30/2014 8.00% 0.00%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $96.49 $90.43 7,468,134 01/31/2015 6.70% 11.37%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.43 $9.86 3,477,715 12/31/2014 5.78% 11.46%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.29 2,699,006 12/31/2014 5.42% 10.76%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $155.62 $147.84 1,351,667 12/31/2014 5.26% 10.44%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $6.05 $5.76 467,706 06/30/2014 4.98% 0.00%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $21.36 5,893 03/31/2015 4.63% 6.17%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $44.86 $42.90 9,916 12/31/2014 4.57% 9.06%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.89 $21.90 1,084 11/15/2014 4.52% 11.96%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.50 6,400 09/30/2014 4.44% 17.63%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $42.76 $41.01 4,029 12/31/2014 4.26% 8.46%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $83.57 $80.60 277,894 09/30/2014 3.68% 14.61%
+ DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) All Stock N/A $6.25 $6.05 53,536 09/30/2014 3.33% 13.22%
+ YONG 04/09/2014 Full Alliance International Limited (N/A) All Cash $339 million $7.10 $6.88 879,424 09/30/2014 3.20% 12.69%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $25.99 $25.20 81,017 12/31/2014 3.15% 6.25%
+ OVRL 05/15/2014 Sphere 3D Corporation (SPIHF) All Stock $81.13 million $4.62 $4.48 183,032 09/30/2014 3.14% 12.48%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.91 $8.68 209,739 10/31/2014 2.64% 7.83%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.42 26,642 06/30/2014 2.63% 0.00%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $13.00 $12.67 212,207 12/31/2014 2.60% 5.17%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.78 132,741 08/15/2014 2.52% 19.98%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $28.85 108 09/30/2014 2.43% 9.63%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.74 46,430 03/31/2014 2.30% 0.00%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.326 1,472 12/31/2014 1.81% 3.59%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.95 1,697 06/30/2014 1.69% 0.00%
+ IDIX 06/09/2014 Merck & Co. Inc. (MRK) All Cash $3.85 billion $24.50 $24.12 2,470,232 09/30/2014 1.58% 6.25%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $15.68 $15.45 4,319,052 12/31/2014 1.48% 2.93%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.85 1,926,779 12/31/2014 1.27% 2.51%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $40.79 $40.33 992,567 12/31/2014 1.15% 2.28%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $34.45 $34.11 5,226,319 12/31/2014 0.98% 1.95%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.40 1,428,280 01/31/2015 0.86% 1.47%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $22.19 $22.01 15,114 06/30/2014 0.80% 0.00%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.67 $22.50 15,819 09/30/2014 0.77% 3.04%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.20 9,439 03/31/2014 0.69% 0.00%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.87 202,227 09/30/2014 0.62% 2.47%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $71.36 $70.92 816,749 06/30/2015 0.62% 0.62%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $27.82 $27.65 651,645 03/31/2015 0.61% 0.82%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $10.83 $10.78 13,504,274 12/31/2014 0.43% 0.86%
+ MCRS 06/23/2014 Oracle Corporation (ORCL) All Cash $4.6 billion $68.00 $67.72 4,664,447 12/31/2014 0.41% 0.82%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $21.53 $21.45 55,904 06/30/2014 0.36% 0.00%
+ CNOB 01/21/2014 Center Bancorp, Inc. (CNBC) All Stock $243 million $50.00 $49.83 206,973 09/30/2014 0.34% 1.34%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $18.94 135,872 09/30/2014 0.32% 1.26%
+ PLXT 06/24/2014 Avago Technologies Limited (AVGO) All Cash $293 million $6.50 $6.48 3,390,635 11/03/2014 0.31% 0.89%
+ CBEY 04/21/2014 Birch Communications, Inc. (N/A) Special Conditions $323 million $9.97 $9.94 127,687 10/31/2014 0.30% 0.90%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.49 270,505 09/30/2014 0.10% 0.38%
+ FRX 02/18/2014 Actavis plc (ACT) Cash Plus Stock $25 billion $99.85 $99.77 2,678,572 06/30/2014 0.08% 0.00%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $85.95 439,737 12/31/2014 0.06% 0.12%
+ HITT 06/09/2014 Analog Devices, Inc. (ADI) All Cash $2 billion $78.00 $77.96 538,953 09/30/2014 0.05% 0.20%
+ TXI 01/28/2014 Martin Marietta Materials Inc. (MLM) All Stock $2.7 billion $92.56 $92.55 209,158 06/30/2014 0.01% 0.00%
+ MDCI 06/25/2014 Owens & Minor, Inc. (OMI) All Cash $208 million $13.80 $13.80 3,171,078 12/31/2014 0.00% 0.00%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $31.99 $32.01 646,621 09/30/2014 -0.07% -0.29%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.44 394,196 07/31/2014 -0.18% -2.16%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.40 327,537 12/31/2014 -0.25% -0.49%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.37 $20.45 190,229 09/30/2014 -0.41% -1.63%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.40 959,705 09/30/2015 -0.55% -0.44%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.27 $7.32 86,133 12/31/2014 -0.73% -1.45%
+ FIO 06/16/2014 SanDisk Corp. (SNDK) All Cash $1.1 billion $11.25 $11.34 5,646,765 09/30/2014 -0.79% -3.15%
+ 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 39,660 09/30/2014 -0.91% -3.61%
+ OPEN 06/13/2014 The Priceline Group Inc. (PCLN) All Cash $2.6 billion $103.00 $104.01 725,302 09/30/2014 -0.97% -3.85%
+ PDH 05/28/2014 Flint Hills Resources, LLC (N/A) All Cash $2.1 billion $14.00 $14.45 238,839 12/31/2014 -3.11% -6.18%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $20.16 $21.26 2,119,648 12/31/2014 -5.16% -10.23%
+ FURX 04/28/2014 Forest Laboratories Inc. (FRX) Special Conditions $1.1 billion $95.00 $104.96 139,514 09/30/2014 -9.49% -37.65%
+ 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 $23.67 89,140 12/31/2014 -17.62% -34.95%

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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