Merger Arbitrage Mondays – July 7, 2014

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July 6, 2014 | Merger Arbitrage | | Author Asif

Merger Activity decreased last week with four new mergers announced and five 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 85
Total Number of Deals Not Completed in 2014 1
Total Number of Pending Deals
Cash Deals 33
Stock Deals 17
Stock & Cash Deals 10
Special Conditions 6
Total Number of Pending Deals 66
Total Deal Size $392.29 billion

New Deals:

  1. The acquisition of Sport Chalet (SPCHA, SPCHB) by Vestis Retail Group. Under the terms of the agreement, shareholders of Sport Chalet will receive $1.20 per share in cash. If the total number of shares tendered in the Offer, together with the shares to be purchased from the founding family members immediately after consummation of the Offer, do not constitute 90 percent of each class of shares of Sport Chalet on a fully diluted basis, the price to be paid to stockholders in the Offer would be reduced from $1.20 to $1.04 per share.
  2. The acquisition of Enventis Corporation (ENVE) by Consolidated Communications Holdings (CNSL) for $350 million in an all stock deal. Under the terms of the agreement, sharheolders of Enventis Corporation will receive 0.7402 shares of CNSL common stock for each share of ENVE common stock they own.
  3. The acquisition of Vitacost.com (VITC) by The Kroger Co. (KR) for $280 million or $8.00 per share in cash.
  4. The acquisition of The Hillshire Brands Company (HSH) by Tyson Foods (TSN) for $8.55 billion or $63.00 per share in cash.

Deal Updates:

  1. On July 1, 2014, Taylor Capital Group (TAYC) and MB Financial (MBFIentered into an amendment to the Merger Agreement.The Amendment extends the date after which either the Company or MB Financial would be able to terminate the Merger Agreement if the Merger has not yet occurred, from June 30, 2014 to September 30, 2014, provided that the Termination Date may be extended beyond September 30, 2014 one or more times, but not to a date later than December 31, 2014, by either the Company or MB Financial if the only condition to the closing of the Merger that has not been satisfied by the tenth day prior to the then-current Termination Date is the receipt of a requisite regulatory approval.
  2. On July 1, 2014, Pinnacle Foods (PF) opted to receive a $163 million breakup fee by terminating an agreement to be taken over by Hillshire Brands (HSH), clearing the way for its would-be acquirer to be bought out by Tyson Foods (TSN)

Closed Deals:

  1. The acquisition of ConnectOne Bancorp (CNOB) by Center Bancorp (CNBC) on July 1, 2014. It took 161 days for this deal to be completed.
  2. The acquisition of Forest Laboratories (FRX) by Actavis plc (ACT) on July 1, 2014. It took 160 days for this deal to be completed.
  3. The acquisition of Furiex Pharmaceuticals (FURX) by Actavis plc (ACT) on July 2, 2014.  It took 65 days for this deal to be completed.
  4. The acquisition of Texas Industries (TXI) by Martin Marietta Materials (MLM) on July 3, 2014. It took 156 days for this deal to be completed.
  5. The acquisition of Yongye International (YONG) by Full Alliance International Limited on July 3, 2014. It took 85 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 $1.96 11/15/2014 27.55% 76.76%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $85.93 05/31/2015 10.56% 11.75%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $3.99 $3.65 12/31/2014 9.41% 19.40%
QCOR 04/07/2014 Mallinckrodt plc (MNK) $102.90 $95.00 09/30/2014 8.31% 35.71%
OVRL 05/15/2014 Sphere 3D Corporation (SPIHF) $5.23 $4.85 09/30/2014 7.91% 33.96%
RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) $18.50 $17.38 08/08/2014 6.44% 73.50%
SWY 03/06/2014 AB Acquisition LLC (N/A) $36.15 $34.01 12/31/2014 6.29% 12.98%
MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) $22.60 $21.28 09/30/2014 6.20% 26.64%
THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) $45.79 $43.23 12/31/2014 5.91% 12.20%
COV 06/15/2014 Medtronic, Inc. (MDT) $96.90 $91.76 01/31/2015 5.60% 9.83%

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 $1.96 599,844 11/15/2014 27.55% 76.76%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $85.93 1,241,979 05/31/2015 10.56% 11.75%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.99 $3.65 7,500 12/31/2014 9.41% 19.40%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $102.90 $95.00 1,397,804 09/30/2014 8.31% 35.71%
+ OVRL 05/15/2014 Sphere 3D Corporation (SPIHF) All Stock $81.13 million $5.23 $4.85 34,041 09/30/2014 7.91% 33.96%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.38 148,286 08/08/2014 6.44% 73.50%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.01 3,272,627 12/31/2014 6.29% 12.98%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $21.28 301,069 09/30/2014 6.20% 26.64%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $45.79 $43.23 36,080 12/31/2014 5.91% 12.20%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $96.90 $91.76 2,486,736 01/31/2015 5.60% 9.83%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.50 $9.97 1,082,902 12/31/2014 5.30% 10.94%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $157.84 $150.51 1,155,222 12/31/2014 4.87% 10.04%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.49 4,304 09/30/2014 4.68% 20.08%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $26.22 $25.06 54,755 12/31/2014 4.62% 9.52%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.89 $22.00 105 11/15/2014 4.05% 11.27%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $83.84 $80.83 91,720 09/30/2014 3.73% 16.02%
+ SPCHA 06/30/2014 Vestis Retail Group, LLC (N/A) All Cash N/A $1.20 $1.16 33,208 09/30/2014 3.45% 14.81%
+ DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) All Stock N/A $6.22 $6.02 11,075 09/30/2014 3.29% 14.11%
+ NDZ 03/28/2014 Sterigenics (N/A) All Cash $727 million $13.00 $12.59 107,691 12/31/2014 3.26% 6.72%
+ ENVE 06/30/2014 Consolidated Communications Holdings Inc. (CNSL) All Stock $350 million $16.64 $16.14 102,797 12/31/2014 3.10% 6.38%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $43.67 $42.50 10,900 12/31/2014 2.75% 5.66%
+ NED 04/02/2014 Rainbow Education Holding Limited (N/A) All Cash N/A $2.85 $2.78 500 08/15/2014 2.52% 23.57%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $23.15 $22.63 8,347 09/30/2014 2.31% 9.92%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $28.89 7 09/30/2014 2.28% 9.81%
+ CHC 01/13/2014 CPT Wyndham Holdings Ltd. (N/A) All Cash N/A $3.51 $3.44 113,899 07/31/2014 2.03% 30.95%
+ HAST 03/17/2014 Affiliate of Joel Weinshanker (N/A) All Cash $21.4 million $3.00 $2.95 2,100 07/31/2014 1.69% 25.78%
+ IDIX 06/09/2014 Merck & Co. Inc. (MRK) All Cash $3.85 billion $24.50 $24.12 1,073,463 09/30/2014 1.58% 6.77%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.94 $8.80 90,883 10/31/2014 1.54% 4.85%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.33 26,533 12/31/2014 1.50% 3.10%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $35.35 $34.92 598,941 12/31/2014 1.22% 2.51%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.76 12,843 07/30/2014 1.14% 18.03%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $41.12 $40.67 1,477,864 12/31/2014 1.11% 2.29%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $69.24 $68.50 860,870 06/30/2015 1.08% 1.10%
+ GA 03/16/2014 Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A) All Cash $3 billion $12.00 $11.88 485,698 12/31/2014 1.01% 2.08%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.18 2,806 07/31/2014 0.97% 14.83%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.45 516,704 01/31/2015 0.79% 1.39%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $22.70 $22.53 8,261 09/30/2014 0.74% 3.16%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $16.55 $16.45 762,915 12/31/2014 0.60% 1.24%
+ AMAP 04/11/2014 affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A) All Cash $1.5 billion $21.00 $20.89 186,540 09/30/2014 0.53% 2.26%
+ HSH 07/02/2014 Tyson Foods, Inc. (TSN) All Cash $8.55 billion $63.00 $62.68 3,612,831 09/27/2014 0.51% 2.27%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $22.25 1,000 03/31/2015 0.45% 0.61%
+ VSB 01/27/2014 Yadkin Financial Corporation (YDKN) All Stock $299 million $6.07 $6.04 44,580 07/04/2014 0.42% 0.00%
+ PLXT 06/24/2014 Avago Technologies Limited (AVGO) All Cash $293 million $6.50 $6.48 879,459 11/03/2014 0.31% 0.95%
+ VITC 07/02/2014 The Kroger Co. (KR) All Cash $280 million $8.00 $7.98 2,835,982 09/30/2014 0.25% 1.08%
+ ESC 02/20/2014 Brookdale Senior Living Inc. (BKD) All Stock $2.8 billion $32.61 $32.55 160,981 09/30/2014 0.20% 0.84%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $18.97 13,904 09/30/2014 0.16% 0.68%
+ CBEY 04/21/2014 Birch Communications, Inc. (N/A) Special Conditions $323 million $9.97 $9.96 154,453 10/31/2014 0.10% 0.32%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $22.68 $22.66 16,609 09/30/2014 0.08% 0.34%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $10.79 $10.78 995,870 12/31/2014 0.07% 0.15%
+ MDCI 06/25/2014 Owens & Minor, Inc. (OMI) All Cash $208 million $13.80 $13.80 178,096 12/31/2014 0.00% 0.00%
+ HITT 06/09/2014 Analog Devices, Inc. (ADI) All Cash $2 billion $78.00 $78.04 295,275 09/30/2014 -0.05% -0.22%
+ SGK 03/17/2014 Matthews International Corporation (MATW) Cash Plus Stock $577 million $20.60 $20.62 12,828 09/30/2014 -0.07% -0.31%
+ MCRS 06/23/2014 Oracle Corporation (ORCL) All Cash $4.6 billion $68.00 $68.05 3,110,775 12/31/2014 -0.07% -0.15%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $86.10 89,682 12/31/2014 -0.12% -0.24%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.39 $7.40 15,942 12/31/2014 -0.12% -0.24%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.36 141,688 12/31/2014 -0.18% -0.38%
+ FIO 06/16/2014 SanDisk Corp. (SNDK) All Cash $1.1 billion $11.25 $11.29 2,013,161 09/30/2014 -0.35% -1.52%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.45 277,414 07/31/2014 -0.37% -5.58%
+ OPEN 06/13/2014 The Priceline Group Inc. (PCLN) All Cash $2.6 billion $103.00 $103.54 347,962 09/30/2014 -0.52% -2.24%
+ 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 35,612 09/30/2014 -0.91% -3.90%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $27.82 $28.18 99,867 03/31/2015 -1.28% -1.75%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.69 1,835,446 09/30/2015 -1.59% -1.29%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.70 886,935 09/30/2014 -1.87% -8.03%
+ PDH 05/28/2014 Flint Hills Resources, LLC (N/A) All Cash $2.1 billion $14.00 $14.39 142,531 12/31/2014 -2.71% -5.59%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $19.57 $20.33 914,676 12/31/2014 -3.75% -7.73%
+ 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 $23.68 14,282 12/31/2014 -17.65% -36.40%

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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