Merger Arbitrage Mondays – August 11, 2014

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August 10, 2014 | Merger Arbitrage | | Author Asif

Merger Activity decreased last week with three new mergers announced and two 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 103
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 23
Stock Deals 20
Stock & Cash Deals 14
Special Conditions 7
Total Number of Pending Deals 64
Total Deal Size $465.89 billion

New Deals:

  1. The acquisition of NB&T Financial Group (NBTF) by Peoples Bancorp (PEBO) for $109 million in a cash plus stock deal. Under the terms of the agreement, shareholders of NB&T Financial Group will receive 0.9319 shares of Peoples common stock and $7.75 in cash for each share of NBTF common stock.
  2. The acquisition of Pike Corporation (PIKE) by Court Square Capital Partners & J. Eric Pike, the Company’s Chairman and Chief Executive Officer for $12.00 per share in cash.
  3. The acquisition of Peoples Federal Bancshares (PEOP) by Independent Bank (INDB) for $130.6 million in an all stock deal. Under the terms of the agreement, 60% of outstanding Peoples Federal Bancshares shares will be exchanged for Independent shares at a fixed exchange ratio of .5523 and the remaining 40% of outstanding Peoples Federal shares will be exchanged for $21.00 per share in cash. Peoples Federal shareholders will be able to elect between receiving cash or Independent shares, subject to proration and allocation so that 60% of outstanding Peoples Federal shares are exchanged for Independent stock and 40% exchanged for cash. We are treating this as an all stock deal.

Closed Deals:

  1. The acquisition of Idenix Pharmaceuticals (IDIX) by Merck & Co. (MRK) on August 5, 2014. It took 57 days for this deal to be completed.
  2. The acquisition of Nordion (NDZ) by Sterigenics on August 6, 2014. It took 131 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

DTV 05/18/2014 AT&T, Inc. (T) $95.00 $84.00 05/31/2015 13.10% 16.31%
COV 06/15/2014 Medtronic, Inc. (MDT) $94.61 $84.00 01/31/2015 12.63% 26.64%
LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $24.72 03/31/2015 12.54% 19.73%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $16.34 06/30/2015 11.69% 13.21%
BYI 08/01/2014 Scientific Games Corporation (SGMS) $83.30 $74.70 01/31/2015 11.51% 24.29%
LO 07/15/2014 Reynolds American Inc. (RAI) $67.10 $60.41 06/30/2015 11.08% 12.52%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $2.50 $2.30 11/15/2014 8.70% 33.06%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.64 09/30/2014 8.54% 62.32%
OABC 04/29/2014 Southside Bancshares Inc. (SBSI) $26.36 $24.52 12/31/2014 7.52% 19.33%
TRLA 07/28/2014 Zillow, Inc. (Z) $61.99 $58.13 03/31/2015 6.64% 10.45%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $84.00 2,318,176 05/31/2015 13.10% 16.31%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $94.61 $84.00 7,336,583 01/31/2015 12.63% 26.64%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $27.82 $24.72 115,725 03/31/2015 12.54% 19.73%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $16.34 6,730,587 06/30/2015 11.69% 13.21%
+ BYI 08/01/2014 Scientific Games Corporation (SGMS) All Cash $5.1 billion $83.30 $74.70 2,607,497 01/31/2015 11.51% 24.29%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $67.10 $60.41 2,857,542 06/30/2015 11.08% 12.52%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $2.50 $2.30 279,427 11/15/2014 8.70% 33.06%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.64 15,494 09/30/2014 8.54% 62.32%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $26.36 $24.52 39,240 12/31/2014 7.52% 19.33%
+ TRLA 07/28/2014 Zillow, Inc. (Z) All Stock $3.5 billion $61.99 $58.13 653,805 03/31/2015 6.64% 10.45%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $153.81 $145.71 1,635,676 12/31/2014 5.56% 14.29%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $21.48 299,961 09/30/2014 5.21% 38.06%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.47 2,145 09/30/2014 5.15% 37.56%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.60 $21.55 18,620 11/15/2014 4.87% 18.53%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.51 1,363,549 12/31/2014 4.75% 12.22%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.08 $9.64 1,523,695 12/31/2014 4.51% 11.60%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $3.34 $3.20 59,146 09/30/2014 4.51% 32.94%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $21.15 $20.37 357,560 01/31/2015 3.83% 8.09%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $4.02 $3.87 10,417 09/19/2014 3.78% 35.37%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $18.73 $18.16 2,100,415 12/31/2014 3.12% 8.02%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $67.55 $65.57 346,022 06/30/2015 3.01% 3.41%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $18.71 $18.18 2,610 12/31/2014 2.89% 7.42%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $20.43 $19.86 12,837 12/31/2014 2.85% 7.33%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (PEBO) Cash Plus Stock $109 million $29.62 $28.90 10,871 03/31/2015 2.50% 3.93%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.70 $8.52 303,144 10/31/2014 2.16% 9.74%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $21.88 110 03/31/2015 2.15% 3.38%
+ DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) All Stock N/A $5.99 $5.87 40,452 09/30/2014 2.02% 14.78%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $29.00 13,033 09/30/2014 1.90% 13.84%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $32.42 $31.84 1,685,783 12/31/2014 1.83% 4.69%
+ ENVE 06/30/2014 Consolidated Communications Holdings Inc. (CNSL) All Stock $350 million $16.62 $16.33 16,692 12/31/2014 1.76% 4.53%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $82.19 $80.95 160,972 09/30/2014 1.53% 11.19%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.33 13,355 12/31/2014 1.50% 3.87%
+ PIKE 08/04/2014 Court Square Capital Partners & J. Eric Pike, the Company�s Chairman and Chief Executive Officer (N/A) All Cash N/A $12.00 $11.84 874,715 12/31/2014 1.35% 3.47%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $42.41 $41.92 19 12/31/2014 1.17% 3.01%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $38.97 $38.53 1,176,868 12/31/2014 1.15% 2.96%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $79.91 $79.03 823,850 03/31/2015 1.11% 1.75%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.99 1,666,166 09/30/2015 0.96% 0.85%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $15.34 $15.20 3,550,586 12/31/2014 0.90% 2.32%
+ SPCHA 06/30/2014 Vestis Retail Group, LLC (N/A) All Cash N/A $1.20 $1.19 21,022 09/30/2014 0.84% 6.13%
+ URS 07/13/2014 AECOM Technology Corporation (ACM) Cash Plus Stock $6 billion $58.34 $57.87 685,193 10/31/2014 0.81% 3.64%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $40.31 $40.01 571 12/31/2014 0.75% 1.92%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $10.71 $10.63 1,623,684 12/31/2014 0.74% 1.90%
+ QCOR 04/07/2014 Mallinckrodt plc (MNK) Cash Plus Stock $5.6 billion $92.28 $91.69 1,817,751 09/30/2014 0.64% 4.69%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.65 759,354 01/31/2015 0.50% 1.06%
+ HSH 07/02/2014 Tyson Foods, Inc. (TSN) All Cash $8.55 billion $63.00 $62.77 1,036,738 09/27/2014 0.37% 2.85%
+ MCRS 06/23/2014 Oracle Corporation (ORCL) All Cash $4.6 billion $68.00 $67.78 766,994 12/31/2014 0.32% 0.83%
+ PLXT 06/24/2014 Avago Technologies Limited (AVGO) All Cash $293 million $6.50 $6.48 201,536 11/03/2014 0.31% 1.34%
+ ZIPR 07/15/2014 Realogy Holdings Corp. (RLGY) All Cash $166 million $6.75 $6.73 70,566 09/30/2014 0.30% 2.17%
+ MDCI 06/25/2014 Owens & Minor, Inc. (OMI) All Cash $208 million $13.80 $13.77 43,597 12/31/2014 0.22% 0.56%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $18.96 31,689 09/30/2014 0.21% 1.54%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $85.91 191,457 12/31/2014 0.10% 0.27%
+ VITC 07/02/2014 The Kroger Co. (KR) All Cash $280 million $8.00 $8.00 118,119 09/30/2014 0.00% 0.00%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $4.55 291,871 01/31/2015 0.00% 0.00%
+ PEOP 08/05/2014 Independent Bank Corp. (INDB) All Stock $130.6 million $19.50 $19.52 147,731 03/31/2015 -0.12% -0.19%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $21.48 $21.55 4,516 09/30/2014 -0.33% -2.41%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $21.24 $21.33 44,403 09/30/2014 -0.43% -3.18%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.63 155,821 12/31/2014 -0.63% -1.61%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $21.03 $21.25 7,422 09/30/2014 -1.05% -7.69%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.69 94,478 09/30/2014 -1.78% -12.97%
+ 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 $5.58 290,370 09/30/2014 -2.33% -17.01%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $77.09 813,454 01/31/2015 -3.36% -7.09%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $6.79 $7.14 175,156 12/31/2014 -4.91% -12.61%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $16.53 $17.78 994,228 12/31/2014 -7.05% -18.13%
+ 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 $23.79 82,690 12/31/2014 -18.03% -46.35%

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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