Merger Arbitrage Mondays – September 22, 2014

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September 21, 2014 | Merger Arbitrage | | Author Asif

Merger Activity decreased last week with three 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 119
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 24
Stock Deals 19
Stock & Cash Deals 16
Special Conditions 8
Total Number of Pending Deals 67
Total Deal Size $513.59 billion

New Deals:

  1. The acquisition of TRW Automotive Holdings (TRW) by ZF Friedrichshafen AG for $13.5 billion or $105.60 per share in cash.
  2. The acquisition of Glimcher Realty Trust (GRT) by Washington Prime Group (WPG) in a cash plus stock deal. Under the terms of the agreement, shareholders of Glimcher Realty Trust will receive, for each Glimcher share, $10.40 in cash and 0.1989 of a share in WPG stock at closing.
  3. The acquisition of Concur Technologies (CNQR) by SAP SE (SAP) for $8.3 billion or $129 per share in cash.

Deal Updates:

  1. On September 16, 2014, Endo International (ENDP) announced that it has delivered a proposal to acquire all of the outstanding shares of Auxilium Pharmaceuticals (AUXL) for a per share consideration of $28.10 in a cash and stock transaction valued at $2.2 billion.
  2. On September 17, 2014, the Board of Directors of Family Dollar Stores (FDO) unanimously recommended that Family Dollars shareholders reject the unsolicited conditional tender offer made by Dollar General Corporation (DG) and not tender their shares. In conjunction with its rejection of Dollar Generals offer, Family Dollars Board unanimously reaffirmed its recommendation in support of the transaction with Dollar Tree (DLTR).
  3. On September 18, 2014, RF Micro Devices (RFMD) and TriQuint Semiconductor (TQNT) revealed that the holding company under which the companies will combine in a merger of equals will be named QorvoTM, Inc. Qorvo is expected to be traded on the NASDAQ Global Stock Market under the ticker symbol QRVO following closing of the merger.

Closed Deals:

  1. The acquisition of Aeroflex Holding (ARX) by Cobham plc on September 15, 2014. It took 118 days for this deal to be completed.
  2. The acquisition of Tower Group International (TWGP) by ACP Re Ltd. on September 16, 2014. It took 253 days for this deal to be completed.
  3. The acquisition of OBA Financial Services (OBAF) by F.N.B. Corporation (FNB) on September 19, 2014. It took 164 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

LO 07/15/2014 Reynolds American Inc. (RAI) $67.22 $59.40 06/30/2015 13.17% 17.11%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $4.09 $3.63 09/19/2014 12.62% -1535.61%
LIN 03/22/2014 Media General, Inc. (MEG) $25.97 $23.44 03/31/2015 10.79% 20.73%
MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) $22.60 $20.73 09/30/2014 9.02% 411.57%
COV 06/15/2014 Medtronic, Inc. (MDT) $98.50 $90.85 01/31/2015 8.42% 23.45%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $87.72 05/31/2015 8.30% 12.07%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $16.88 06/30/2015 8.12% 10.54%
OABC 04/29/2014 Southside Bancshares Inc. (SBSI) $28.17 $26.07 12/31/2014 8.07% 29.46%
TWC 02/13/2014 Comcast Corporation (CMCSA) $163.13 $153.16 12/31/2014 6.51% 23.75%
SWY 03/06/2014 AB Acquisition LLC (N/A) $36.15 $34.28 12/31/2014 5.46% 19.91%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $67.22 $59.40 3,337,343 06/30/2015 13.17% 17.11%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $4.09 $3.63 17,968 09/19/2014 12.62% 0.00%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $25.97 $23.44 531,331 03/31/2015 10.79% 20.73%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $20.73 257,853 09/30/2014 9.02% 411.57%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $98.50 $90.85 3,370,227 01/31/2015 8.42% 23.45%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $87.72 6,932,713 05/31/2015 8.30% 12.07%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $16.88 2,916,059 06/30/2015 8.12% 10.54%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $28.17 $26.07 63,726 12/31/2014 8.07% 29.46%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $163.13 $153.16 2,398,813 12/31/2014 6.51% 23.75%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.28 1,299,837 12/31/2014 5.46% 19.91%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.73 $10.23 3,603,790 12/31/2014 4.88% 17.80%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.70 25,713 09/30/2014 4.71% 214.71%
+ TRLA 07/28/2014 Zillow, Inc. (Z) All Stock $3.5 billion $58.09 $55.59 558,988 03/31/2015 4.49% 8.63%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.60 $21.67 106 11/15/2014 4.29% 29.02%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $21.24 $20.37 443,165 01/31/2015 4.27% 11.90%
+ BYI 08/01/2014 Scientific Games Corporation (SGMS) All Cash $5.1 billion $83.30 $80.71 589,402 01/31/2015 3.21% 8.94%
+ TRW 09/15/2014 ZF Friedrichshafen AG (“ZF”) (N/A) All Cash $13.5 billion $105.60 $102.50 3,405,964 06/30/2015 3.02% 3.93%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $19.81 $19.25 59,428 12/31/2014 2.91% 10.62%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $68.44 $66.77 564,715 06/30/2015 2.50% 3.24%
+ CNVR 09/11/2014 Alliance Data Systems Corporation (ADS) Special Conditions $2.3 billion $35.00 $34.27 3,172,426 12/31/2014 2.13% 7.78%
+ CPWR 09/02/2014 Thoma Bravo, LLC (N/A) All Cash $2.5 billion $10.92 $10.70 3,629,855 01/31/2015 2.06% 5.73%
+ KMP 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $94.04 $92.15 4,375,665 12/31/2014 2.05% 7.49%
+ EPB 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $40.54 $39.72 1,849,797 12/31/2014 2.05% 7.49%
+ KMR 08/10/2014 Kinder Morgan, Inc. (KMI) All Stock N/A $94.35 $92.61 932,409 12/31/2014 1.88% 6.86%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $41.95 $41.21 51,227 12/31/2014 1.79% 6.53%
+ BKYF 09/08/2014 BB&T Corporation (BBT) Cash Plus Stock $363 million $48.51 $47.67 36,056 03/31/2015 1.76% 3.37%
+ CNQR 09/18/2014 SAP SE (SAP) All Cash $8.3 billion $129.00 $126.82 23,670,174 03/31/2015 1.72% 3.30%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $22.00 1,000 03/31/2015 1.59% 3.06%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.63 7,756 09/30/2014 1.51% 68.98%
+ IRF 08/20/2014 Infineon Technologies AG (IFNNY) All Cash $2.4 billion $40.00 $39.42 1,144,768 01/31/2015 1.47% 4.10%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $19.83 $19.57 5,321,826 12/31/2014 1.34% 4.89%
+ ENVE 06/30/2014 Consolidated Communications Holdings Inc. (CNSL) All Stock $350 million $18.54 $18.31 47,412 12/31/2014 1.27% 4.62%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $14.20 $14.04 4,881,141 12/31/2014 1.14% 4.18%
+ FRF 08/12/2014 Tiptree Financial Inc. (TIPT) All Cash $218 million $10.00 $9.89 103,501 01/31/2015 1.11% 3.10%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $29.25 442 09/30/2014 1.03% 46.79%
+ GRT 09/16/2014 Washington Prime Group Inc. (WPG) Cash Plus Stock $4.3 billion $13.81 $13.68 11,527,480 03/31/2015 0.94% 1.81%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $43.06 $42.69 1,214,139 12/31/2014 0.87% 3.17%
+ PSMI 08/22/2014 Murata Electronics North America, Inc. (N/A) All Cash $471 million $12.50 $12.40 502,287 01/31/2015 0.81% 2.25%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.48 701,557 01/31/2015 0.75% 2.09%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $31.99 $31.76 451,778 12/31/2014 0.72% 2.64%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.92 $8.86 143,649 10/31/2014 0.65% 6.11%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (PEBO) Cash Plus Stock $109 million $29.99 $29.83 221 03/31/2015 0.55% 1.06%
+ COBR 08/28/2014 Monomoy Capital Partners II, L.P. (N/A) All Cash N/A $4.30 $4.28 129,548 12/31/2014 0.47% 1.71%
+ BOLT 09/03/2014 Teledyne Technologies Inc. (TDY) All Cash $171 million $22.00 $21.92 52,241 12/31/2014 0.36% 1.33%
+ 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 $11.96 898,241 12/31/2014 0.33% 1.22%
+ COBK 09/10/2014 Cape Bancorp, Inc. (CBNJ) All Stock $55 million $13.34 $13.30 25,160 06/30/2014 0.33% 0.00%
+ MDCI 06/25/2014 Owens & Minor, Inc. (OMI) All Cash $208 million $13.80 $13.76 46,694 12/31/2014 0.29% 1.06%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $85.82 212,318 12/31/2014 0.21% 0.77%
+ ITMN 08/24/2014 Roche (N/A) All Cash $8.3 billion $74.00 $73.85 5,492,703 12/31/2014 0.20% 0.74%
+ MGAM 09/08/2014 Global Cash Access Holdings, Inc. (GCA) All Cash $1.2 billion $36.50 $36.43 485,901 03/31/2015 0.19% 0.37%
+ BNNY 09/08/2014 General Mills, Inc. (GIS) All Cash $820 million $46.00 $45.94 503,218 12/31/2014 0.13% 0.48%
+ URS 07/13/2014 AECOM Technology Corporation (ACM) Cash Plus Stock $6 billion $60.15 $60.10 555,996 10/31/2014 0.08% 0.79%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $81.41 $81.37 719,758 03/31/2015 0.05% 0.10%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.35 58,717 12/31/2014 0.00% 0.00%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.30 1,190,276 09/30/2015 -0.18% -0.18%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $19.37 $19.41 2,903 12/31/2014 -0.22% -0.81%
+ PEOP 08/05/2014 Independent Bank Corp. (INDB) All Stock $130.6 million $20.39 $20.50 9,649 03/31/2015 -0.56% -1.07%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $6.99 $7.06 468,422 12/31/2014 -0.96% -3.52%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $40.92 $41.34 582 12/31/2014 -1.01% -3.70%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $10.32 $10.43 2,806,817 12/31/2014 -1.08% -3.95%
+ TAM 09/11/2014 Eastman Chemical Co. (EMN) All Cash $2.8 billion $26.00 $26.44 430,354 12/31/2014 -1.66% -6.07%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $21.86 $22.55 15,863 09/30/2014 -3.08% -140.36%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $78.76 1,150,432 01/31/2015 -5.41% -15.07%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $3.60 $3.82 88,118 09/30/2014 -5.77% -263.13%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $5.47 2,616,134 01/31/2015 -16.82% -46.86%
+ 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 $23.92 227,674 12/31/2014 -18.48% -67.45%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $16.31 $31.14 3,218,241 12/31/2014 -47.63% -173.87%

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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