Merger Arbitrage Mondays – August 18, 2014

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August 17, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with four new mergers announced and three deals closing. Three of the four new deals are related to combining the various Kinder Morgan entities into a single publicly traded company and effectively getting rid of the MLP structure it had pioneered.

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 106
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 22
Stock Deals 21
Stock & Cash Deals 15
Special Conditions 7
Total Number of Pending Deals 65
Total Deal Size $466.12 billion

New Deals:

  1. The acquisition of Kinder Morgan Management (KMR) by Kinder Morgan, Inc. (KMI) in an all stock deal. Under the terms of the agrement, shareholders of Kinder Morgan Management will receive 2.4849 KMI shares for each share of KMR.
  2. The acquisition of Kinder Morgan Energy Partners (KMP) by Kinder Morgan, Inc. (KMI) in a cash plus stock deal. Under the terms of the agreement, shareholders of Kinder Morgan Energy Partners will receive 2.1931 KMI shares and $10.77 in cash for each KMP unit.
  3. The acquisition of El Paso Pipeline Partners (EPB) by Kinder Morgan, Inc. (KMI) in a cash plus stock deal. Under the terms of the agreement, shareholders of El Paso Pipieline Partners will receive 0.9451 KMI shares and $4.65 in cash for each EPB unit.
  4. The acquisition of Fortegra Financial Corporation (FRF) by Tiptree Financial (TIPT) for $218 million or $10.00 per share in cash.

Closed Deals:

  1. The acquisition of PLX Technology (PLXT) by Avago Technologies Limited (AVGO) on August 12, 2014. It took 49 days for this deal to be completed.
  2. The acquisition of Questcor Pharmaceuticals (QCOR) by Mallinckrodt (MNK) on August 14, 2014. It took 129 days for this deal to be completed.
  3. The acquisition of zipRealty (ZIPR) by Realogy Holdings (RLGY) on August 14, 2014. It took 30 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

LIN 03/22/2014 Media General, Inc. (MEG) $27.82 $22.41 03/31/2015 24.14% 39.16%
OVRL 05/15/2014 Sphere 3D Corporation (ANY) $3.47 $3.03 09/30/2014 14.59% 123.83%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $84.20 05/31/2015 12.83% 16.37%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $2.50 $2.24 11/15/2014 11.61% 47.60%
LO 07/15/2014 Reynolds American Inc. (RAI) $67.13 $60.55 06/30/2015 10.86% 12.55%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.61 09/30/2014 10.56% 89.63%
COV 06/15/2014 Medtronic, Inc. (MDT) $95.66 $87.11 01/31/2015 9.81% 21.57%
BYI 08/01/2014 Scientific Games Corporation (SGMS) $83.30 $76.30 01/31/2015 9.17% 20.17%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $16.81 06/30/2015 8.57% 9.89%
OABC 04/29/2014 Southside Bancshares Inc. (SBSI) $26.61 $24.60 12/31/2014 8.18% 22.13%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $27.82 $22.41 763,937 03/31/2015 24.14% 39.16%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $3.47 $3.03 23,707 09/30/2014 14.59% 123.83%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $84.20 2,514,587 05/31/2015 12.83% 16.37%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $2.50 $2.24 114,563 11/15/2014 11.61% 47.60%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $67.13 $60.55 1,716,473 06/30/2015 10.86% 12.55%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.61 148,216 09/30/2014 10.56% 89.63%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $95.66 $87.11 3,957,233 01/31/2015 9.81% 21.57%
+ BYI 08/01/2014 Scientific Games Corporation (SGMS) All Cash $5.1 billion $83.30 $76.30 441,412 01/31/2015 9.17% 20.17%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $16.81 2,238,676 06/30/2015 8.57% 9.89%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $26.61 $24.60 26,004 12/31/2014 8.18% 22.13%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.94 $3.67 2,050 09/19/2014 7.48% 85.26%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $23.18 $21.80 2,350 11/15/2014 6.33% 25.96%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $157.03 $148.31 1,676,172 12/31/2014 5.88% 15.90%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $21.47 194,594 09/30/2014 5.26% 44.68%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.08 $9.605 2,304,469 12/31/2014 4.95% 13.38%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $21.47 $20.49 269,304 01/31/2015 4.77% 10.48%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.60 1,590,636 12/31/2014 4.48% 12.11%
+ TRLA 07/28/2014 Zillow, Inc. (Z) All Stock $3.5 billion $61.66 $59.14 983,547 03/31/2015 4.27% 6.92%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $21.55 890 03/31/2015 3.71% 6.02%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.54 1,110 09/30/2014 3.52% 29.91%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $20.64 $19.99 24,427 12/31/2014 3.23% 8.74%
+ KMP 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $101.63 $98.90 9,652,506 12/31/2014 2.76% 7.46%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $40.35 $39.33 2,648 12/31/2014 2.60% 7.04%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $83.50 $81.55 344,317 09/30/2014 2.39% 20.26%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.32 5,884 12/31/2014 2.27% 6.14%
+ ENVE 06/30/2014 Consolidated Communications Holdings Inc. (CNSL) All Stock $350 million $17.63 $17.24 35,621 12/31/2014 2.27% 6.14%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $19.33 $18.91 3,306,872 12/31/2014 2.22% 6.00%
+ EPB 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $43.81 $42.92 3,880,869 12/31/2014 2.06% 5.58%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $67.61 $66.30 1,358,808 06/30/2015 1.98% 2.29%
+ KMR 08/10/2014 Kinder Morgan, Inc. (KMI) All Stock N/A $102.95 $101.01 1,780,054 12/31/2014 1.92% 5.19%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $29.00 2,334 09/30/2014 1.90% 16.10%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.70 $8.54 110,602 10/31/2014 1.82% 8.97%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $32.78 $32.23 300,368 12/31/2014 1.71% 4.62%
+ SPCHA 06/30/2014 Vestis Retail Group, LLC (N/A) All Cash N/A $1.20 $1.181 54 09/30/2014 1.61% 13.66%
+ DCIN 05/15/2014 Carmike Cinemas Inc. (CKEC) All Stock N/A $6.07 $5.99 27,091 09/30/2014 1.34% 11.41%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $39.39 $38.90 1,804,186 12/31/2014 1.25% 3.38%
+ FRF 08/12/2014 Tiptree Financial Inc. (TIPT) All Cash $218 million $10.00 $9.88 217,017 01/31/2015 1.21% 2.67%
+ 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 $11.86 509,000 12/31/2014 1.18% 3.19%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.22 780,663 01/31/2015 1.13% 2.48%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $18.41 $18.22 N/A 12/31/2014 1.04% 2.81%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $10.96 $10.85 1,631,056 12/31/2014 1.02% 2.75%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (PEBO) Cash Plus Stock $109 million $29.38 $29.10 241 03/31/2015 0.96% 1.56%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $42.16 $41.76 3,023 12/31/2014 0.95% 2.58%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $14.98 $14.87 3,870,703 12/31/2014 0.71% 1.93%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $80.03 $79.48 2,080,758 03/31/2015 0.69% 1.11%
+ URS 07/13/2014 AECOM Technology Corporation (ACM) Cash Plus Stock $6 billion $59.75 $59.42 601,162 10/31/2014 0.56% 2.78%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.11 1,794,271 09/30/2015 0.52% 0.46%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $4.53 508,252 01/31/2015 0.44% 0.97%
+ PEOP 08/05/2014 Independent Bank Corp. (INDB) All Stock $130.6 million $19.80 $19.72 25,045 03/31/2015 0.41% 0.66%
+ HSH 07/02/2014 Tyson Foods, Inc. (TSN) All Cash $8.55 billion $63.00 $62.75 1,836,790 09/27/2014 0.40% 3.64%
+ MCRS 06/23/2014 Oracle Corporation (ORCL) All Cash $4.6 billion $68.00 $67.77 897,606 12/31/2014 0.34% 0.92%
+ MDCI 06/25/2014 Owens & Minor, Inc. (OMI) All Cash $208 million $13.80 $13.78 47,022 12/31/2014 0.15% 0.39%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $85.99 145,217 12/31/2014 0.01% 0.03%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $19.00 47,612 09/30/2014 0.00% 0.00%
+ VITC 07/02/2014 The Kroger Co. (KR) All Cash $280 million $8.00 $8.00 262,203 09/30/2014 0.00% 0.00%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $21.04 $21.05 152,243 09/30/2014 -0.03% -0.23%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $21.08 $21.09 5,070 09/30/2014 -0.03% -0.29%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $60.59 4,142,752 12/31/2014 -0.56% -1.52%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $21.25 $21.42 408 09/30/2014 -0.81% -6.84%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $76.06 1,716,208 01/31/2015 -2.05% -4.51%
+ 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 $5.57 127,852 09/30/2014 -2.15% -18.29%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.76 81,629 09/30/2014 -2.42% -20.51%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $6.93 $7.24 181,209 12/31/2014 -4.25% -11.50%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $16.09 $17.35 864,282 12/31/2014 -7.28% -19.68%
+ 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 $23.80 38,890 12/31/2014 -18.07% -48.85%

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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