Merger Arbitrage Mondays – July 28, 2014

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July 28, 2014 | Merger Arbitrage | | Author Asif

Merger Activity decreased last week 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 97
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 24
Stock Deals 19
Stock & Cash Deals 14
Special Conditions 6
Total Number of Pending Deals 63
Total Deal Size $447.86 billion

New Deals:

  1. The acquisition of Intermountain Community Bancorp (IMCB) by Columbia Banking System (COLB) for $121.5 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Intermountain Community Bancorp will receive 0.6426 shares of Columbia common stock and $2.2930 in cash for each share of Intermountain common stock. Subject to proration procedures, Intermountain shareholders can elect to receive consideration consisting of all stock, all cash or a combination of stock and cash.
  2. The acquisition of QR Energy (QRE) by Breitburn Energy Partners (BBEP) for $3 billion in an all stock deal. Under the terms of the agreement, shareholders of QR Energy will receive 0.9856 of a BBEP unit for each unit of QRE.

Closed Deals:

  1. The acquisition of Hittite Microwave Corporation (HITT) by Analog Devices (ADI) on July 22, 2013. It took 43 days for this deal to be completed.
  2. The acquisition of Fusion-io (FIO) by SanDisk (SNDK) on July 23, 2014. It took 37 days for this deal to be completed.
  3. The acquisition of OpenTable (OPEN) by The Priceline Group (PCLN) on July 24, 2014. It took 41 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 $2.105 11/15/2014 18.76% 62.27%
LO 07/15/2014 Reynolds American Inc. (RAI) $67.04 $60.73 06/30/2015 10.39% 11.25%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $86.30 05/31/2015 10.08% 11.99%
COV 06/15/2014 Medtronic, Inc. (MDT) $95.32 $87.79 01/31/2015 8.58% 16.75%
QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) $21.48 $20.15 01/31/2015 6.58% 12.85%
OABC 04/29/2014 Southside Bancshares Inc. (SBSI) $26.39 $24.90 12/31/2014 6.00% 14.05%
MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) $22.60 $21.37 09/30/2014 5.76% 32.83%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $17.30 06/30/2015 5.49% 5.95%
TWC 02/13/2014 Comcast Corporation (CMCSA) $156.37 $148.36 12/31/2014 5.40% 12.63%
HCBK 08/27/2012 M&T Bank Corporation (MTB) $10.44 $9.94 12/31/2014 5.00% 11.69%

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 $2.105 1,645,943 11/15/2014 18.76% 62.27%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $67.04 $60.73 1,699,188 06/30/2015 10.39% 11.25%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $86.30 1,889,704 05/31/2015 10.08% 11.99%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $95.32 $87.79 3,822,292 01/31/2015 8.58% 16.75%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $21.48 $20.15 1,336,975 01/31/2015 6.58% 12.85%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $26.39 $24.90 59,744 12/31/2014 6.00% 14.05%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $21.37 305,338 09/30/2014 5.76% 32.83%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $17.30 3,041,674 06/30/2015 5.49% 5.95%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $156.37 $148.36 1,218,932 12/31/2014 5.40% 12.63%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.44 $9.94 3,111,871 12/31/2014 5.00% 11.69%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $85.64 $81.58 130,404 09/30/2014 4.98% 28.41%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.98 $3.80 21,600 12/31/2014 4.76% 11.15%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.49 5,407 09/30/2014 4.68% 26.67%
+ SPCHA 06/30/2014 Vestis Retail Group, LLC (N/A) All Cash N/A $1.20 $1.15 8,600 09/30/2014 4.35% 24.80%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $44.31 $42.61 7,014 12/31/2014 3.99% 9.33%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.60 $21.75 34,918 11/15/2014 3.91% 12.98%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.87 1,972,862 12/31/2014 3.67% 8.59%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $20.62 $19.92 21,515 12/31/2014 3.52% 8.25%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $21.60 175 03/31/2015 3.47% 5.15%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.311 2,664 12/31/2014 2.97% 6.96%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $27.82 $27.08 109,329 03/31/2015 2.73% 4.05%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.781 13,110 08/15/2014 2.48% 50.31%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $28.88 2,600 09/30/2014 2.32% 13.23%
+ DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) All Stock N/A $5.66 $5.54 42,734 09/30/2014 2.17% 12.40%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.65 $8.47 37,522 10/31/2014 2.13% 8.20%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $96.71 $94.93 2,004,913 09/30/2014 1.87% 10.69%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.75 2,884 07/30/2014 1.71% 312.86%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.40 $22.04 400 09/30/2014 1.66% 9.44%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $42.12 $41.50 1,000 12/31/2014 1.50% 3.52%
+ ENVE 06/30/2014 Consolidated Communications Holdings Inc. (CNSL) All Stock $350 million $15.74 $15.54 21,269 12/31/2014 1.31% 3.07%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $41.96 $41.43 544,426 12/31/2014 1.28% 3.00%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $33.77 $33.39 311,606 12/31/2014 1.14% 2.67%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $69.51 $68.85 182,683 06/30/2015 0.96% 1.04%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $18.24 $18.07 6,201,621 12/31/2014 0.94% 2.21%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.40 618,478 01/31/2015 0.86% 1.69%
+ IDIX 06/09/2014 Merck & Co. Inc. (MRK) All Cash $3.85 billion $24.50 $24.33 1,159,072 09/30/2014 0.70% 3.98%
+ URS 07/13/2014 AECOM Technology Corporation (ACM) Cash Plus Stock $6 billion $58.73 $58.33 1,795,250 10/31/2014 0.68% 2.61%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $83.82 $83.33 1,315,346 03/31/2015 0.59% 0.88%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $18.89 37,125 09/30/2014 0.58% 3.32%
+ MCRS 06/23/2014 Oracle Corporation (ORCL) All Cash $4.6 billion $68.00 $67.72 1,245,188 12/31/2014 0.41% 0.97%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $13.00 $12.95 56,460 12/31/2014 0.39% 0.90%
+ HSH 07/02/2014 Tyson Foods, Inc. (TSN) All Cash $8.55 billion $63.00 $62.78 3,105,561 09/27/2014 0.35% 2.10%
+ VITC 07/02/2014 The Kroger Co. (KR) All Cash $280 million $8.00 $7.985 171,299 09/30/2014 0.19% 1.07%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $10.84 $10.82 1,098,353 12/31/2014 0.17% 0.40%
+ ZIPR 07/15/2014 Realogy Holdings Corp. (RLGY) All Cash $166 million $6.75 $6.74 32,790 09/30/2014 0.15% 0.85%
+ MDCI 06/25/2014 Owens & Minor, Inc. (OMI) All Cash $208 million $13.80 $13.78 57,512 12/31/2014 0.15% 0.34%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.73 $20.71 17,000 09/30/2014 0.11% 0.62%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $33.87 $33.84 143,640 09/30/2014 0.08% 0.46%
+ PLXT 06/24/2014 Avago Technologies Limited (AVGO) All Cash $293 million $6.50 $6.495 768,158 11/03/2014 0.08% 0.29%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $3.73 $3.73 36,136 09/30/2014 0.07% 0.37%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $86.00 70,607 12/31/2014 0.00% 0.00%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $21.85 $21.87 51,966 09/30/2014 -0.07% -0.40%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.44 319,581 07/31/2014 -0.18% -22.37%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.41 447,900 12/31/2014 -0.26% -0.62%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $21.21 $21.28 10,090 09/30/2014 -0.35% -2.00%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.55 59,411 09/30/2014 -0.47% -2.70%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.40 539,959 09/30/2015 -0.55% -0.47%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $19.10 $19.30 2,273 12/31/2014 -1.05% -2.46%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $15.71 $15.94 4,012,803 12/31/2014 -1.45% -3.39%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.06 $7.17 144,534 12/31/2014 -1.54% -3.61%
+ 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 $5.55 31,421 09/30/2014 -1.80% -10.28%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $17.56 $18.92 1,310,527 12/31/2014 -7.18% -16.81%
+ 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 $23.41 64,479 12/31/2014 -16.70% -39.08%

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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  1. [...] to this blog entry, 97 deals were completed, only 2 deals failed. However, many others remain unresolved and sometimes [...]

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