Merger Arbitrage Mondays – August 25, 2014

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August 24, 2014 | Merger Arbitrage | | Author Asif

Merger Activity decreased last week with two 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 111
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 21
Stock Deals 20
Stock & Cash Deals 14
Special Conditions 7
Total Number of Pending Deals 62
Total Deal Size $468.99 billion

New Deals:

  1. The acquisition of International Rectifier Corporation (IRF) by Infineon Technologies AG for $2.4 billion or $40.00 per share in cash.
  2. The acquisition of Peregrine Semiconductor Corporation (PSMI) by Murata Electronics North America for $471 million or $12.50 per share in cash.

Deal Updates:

  1. On August 20, 2014, LIN Media (LIN) and Media General (MEGannounced an amendment to their merger, where the merger consideration for each LIN Media common share will now be either $25.97 in cash or 1.4714 shares of the new holding company, subject to proration. The maximum cash amount that will be paid to the LIN shareholders remains $763 million.
  2. On August 21, 2014, Family Dollar Stores (FDO) announced that its Board of Directors has unanimously rejected the non-binding proposal made by Dollar General Corporation (DG) on the basis of antitrust regulatory considerations. In addition, the Family Dollar Board unanimously reaffirmed its recommendation in support of the merger agreement with Dollar Tree, Inc. (DLTR).

Closed Deals:

  1. The acquisition of Taylor Capital Group (TAYC) by MB Financial (MBFI) on August 18, 2014. It took 399 days for this deal to be completed.
  2. The acquisition of Digital Cinema Destinations (DCIN) by Carmike Cinemas (CKEC) on August 18, 2013. It took 95 days for this deal to be completed.
  3. The acquisition of Vitacost.com (VITC) by The Kroger Co.(KR) on August 18, 2013. It took 47 days for this deal to be completed.
  4. The acquisition of Sport Chalet (SPCHA) by Vestis Retail Group on August 19, 2014. It took 50 days for this deal to be completed.
  5. The acquisition of UNS Energy Corporation (UNS) by Fortis on August 20, 2014. It took 252 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 $2.11 11/15/2014 18.48% 82.27%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $84.55 05/31/2015 12.36% 16.17%
LO 07/15/2014 Reynolds American Inc. (RAI) $67.37 $60.47 06/30/2015 11.41% 13.48%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $4.01 $3.65 09/19/2014 9.74% 142.22%
LIN 03/22/2014 Media General, Inc. (MEG) $25.97 $23.85 03/31/2015 8.89% 14.88%
COV 06/15/2014 Medtronic, Inc. (MDT) $95.98 $88.26 01/31/2015 8.75% 20.08%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $16.79 06/30/2015 8.70% 10.27%
OVRL 05/15/2014 Sphere 3D Corporation (ANY) $3.74 $3.44 09/30/2014 8.65% 87.70%
OABC 04/29/2014 Southside Bancshares Inc. (SBSI) $27.43 $25.30 12/31/2014 8.43% 24.05%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.65 09/30/2014 7.88% 79.88%

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 $2.11 1,280,080 11/15/2014 18.48% 82.27%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $84.55 2,232,460 05/31/2015 12.36% 16.17%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $67.37 $60.47 1,583,038 06/30/2015 11.41% 13.48%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $4.01 $3.65 N/A 09/19/2014 9.74% 142.22%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $25.97 $23.85 466,131 03/31/2015 8.89% 14.88%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $95.98 $88.26 1,812,862 01/31/2015 8.75% 20.08%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $16.79 2,489,905 06/30/2015 8.70% 10.27%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $3.74 $3.44 154,695 09/30/2014 8.65% 87.70%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $27.43 $25.30 26,675 12/31/2014 8.43% 24.05%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.65 16,077 09/30/2014 7.88% 79.88%
+ BYI 08/01/2014 Scientific Games Corporation (SGMS) All Cash $5.1 billion $83.30 $77.69 309,392 01/31/2015 7.22% 16.58%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $23.18 $21.67 N/A 11/15/2014 6.97% 31.02%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $155.80 $146.45 1,145,881 12/31/2014 6.38% 18.20%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $21.37 138,070 09/30/2014 5.76% 58.36%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.31 $9.76 1,401,318 12/31/2014 5.61% 16.01%
+ TRLA 07/28/2014 Zillow, Inc. (Z) All Stock $3.5 billion $65.20 $62.10 714,587 03/31/2015 4.99% 8.36%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $21.74 $20.71 187,009 01/31/2015 4.98% 11.44%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.55 941,431 12/31/2014 4.63% 13.21%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $20.47 $19.73 7,509 12/31/2014 3.74% 10.67%
+ KMP 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $100.27 $97.27 2,064,801 12/31/2014 3.08% 8.80%
+ EPB 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $43.22 $42.00 1,669,573 12/31/2014 2.90% 8.28%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.90 $8.65 473,024 10/31/2014 2.89% 15.74%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $21.80 1,590 03/31/2015 2.52% 4.22%
+ KMR 08/10/2014 Kinder Morgan, Inc. (KMI) All Stock N/A $101.41 $98.92 373,273 12/31/2014 2.52% 7.17%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $19.09 $18.64 300 12/31/2014 2.42% 6.89%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.59 3,837 09/30/2014 2.40% 24.30%
+ ENVE 06/30/2014 Consolidated Communications Holdings Inc. (CNSL) All Stock $350 million $17.62 $17.22 10,158 12/31/2014 2.30% 6.57%
+ IRF 08/20/2014 Infineon Technologies AG (IFNNY) All Cash $2.4 billion $40.00 $39.10 7,138,399 01/31/2015 2.30% 5.28%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.321 2,778 12/31/2014 2.20% 6.26%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $68.19 $66.82 238,354 06/30/2015 2.05% 2.42%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $28.96 2,350 09/30/2014 2.04% 20.66%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $40.65 $39.94 N/A 12/31/2014 1.77% 5.06%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $19.78 $19.45 2,446,205 12/31/2014 1.71% 4.86%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (PEBO) Cash Plus Stock $109 million $30.40 $29.89 2,848 03/31/2015 1.69% 2.83%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $42.71 $42.01 125 12/31/2014 1.66% 4.73%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $11.07 $10.90 1,562,719 12/31/2014 1.59% 4.53%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $32.83 $32.35 177,344 12/31/2014 1.47% 4.20%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $40.07 $39.56 969,232 12/31/2014 1.29% 3.69%
+ SUSS 04/28/2014 Energy Transfer Partners, L.P. (ETP) All Stock $1.8 billion $81.92 $80.92 384,944 09/30/2014 1.23% 12.47%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $80.34 $79.44 531,935 03/31/2015 1.13% 1.89%
+ PEOP 08/05/2014 Independent Bank Corp. (INDB) All Stock $130.6 million $20.29 $20.06 8,789 03/31/2015 1.13% 1.89%
+ FRF 08/12/2014 Tiptree Financial Inc. (TIPT) All Cash $218 million $10.00 $9.89 32,507 01/31/2015 1.11% 2.55%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.24 467,375 01/31/2015 1.10% 2.52%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $21.64 $21.41 3,606 09/30/2014 1.07% 10.86%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.00 $21.79 400 09/30/2014 0.94% 9.55%
+ 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 $11.91 272,079 12/31/2014 0.76% 2.15%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $15.65 $15.54 3,100,923 12/31/2014 0.71% 2.02%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $4.53 849,996 01/31/2015 0.44% 1.01%
+ URS 07/13/2014 AECOM Technology Corporation (ACM) Cash Plus Stock $6 billion $60.32 $60.07 200,224 10/31/2014 0.42% 2.26%
+ HSH 07/02/2014 Tyson Foods, Inc. (TSN) All Cash $8.55 billion $63.00 $62.84 793,827 09/27/2014 0.25% 2.82%
+ MCRS 06/23/2014 Oracle Corporation (ORCL) All Cash $4.6 billion $68.00 $67.84 508,995 12/31/2014 0.24% 0.67%
+ MDCI 06/25/2014 Owens & Minor, Inc. (OMI) All Cash $208 million $13.80 $13.77 14,175 12/31/2014 0.22% 0.62%
+ DFZ 05/02/2014 Mill Road Capital (N/A) All Cash $215 million $19.00 $18.97 35,810 09/30/2014 0.16% 1.60%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $85.90 432,765 12/31/2014 0.12% 0.33%
+ PSMI 08/22/2014 Murata Electronics North America, Inc. (N/A) All Cash $471 million $12.50 $12.53 12,051,219 01/31/2015 -0.24% -0.55%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.38 766,226 09/30/2015 -0.47% -0.43%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.64 1,280,437 09/30/2014 -1.32% -13.34%
+ 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 $5.61 156,581 09/30/2014 -2.85% -28.92%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.10 $7.45 382,257 12/31/2014 -4.74% -13.52%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $79.67 1,864,792 01/31/2015 -6.49% -14.90%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $17.25 $18.47 899,277 12/31/2014 -6.62% -18.87%
+ 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 $23.89 122,298 12/31/2014 -18.38% -52.40%

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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