Merger Arbitrage Mondays – September 29, 2014

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September 28, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with five new mergers announced and one deal 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 120
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 28
Stock Deals 19
Stock & Cash Deals 17
Special Conditions 7
Total Number of Pending Deals 71
Total Deal Size $539.23 billion

New Deals:

  1. The acquisition of Dresser-Rand Group (DRC) by Siemens for $7.6 billion or $83.00 per share in cash. Additional per share cash consideration of $0.55 shall be applied on the first day of each month starting March 1, 2015, until the closing occurs.
  2. The acquisition of Viasystems Group (VIAS) by TTM Technologies (TTMI) for $927 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Viasystems will receive per share consideration equal to $11.33 in cash and 0.706 shares of TTM common stock for each Viasystems share.
  3. The acquisition of Sigma-Aldrich Corporation (SIAL) by Merck KGaA for $17 billion or $140 per share in cash.
  4. The acquisition of CMS Bancorp (CMSB) by Putnam County Savings Bank for $25.4 million or $13.25 per share in cash.
  5. The acquisition of LipoScience (LPDX) by Laboratory Corp. of America Holdings (LH) for $85.3 million or $5.25 per share in cash.

Deal Updates:

  1. On September 23, 2014, Auxilium Pharma (AUXL) reviewed Endo International (ENDP)’s $2.2 billion or 28.10 per share offer and turned it down as it felt that the proposal grossly undervalued the company.

Closed Deals:

  1. The acquisition of Charm Communications (CHRM) by Engadin Parent Limited on September 24, 2014. It took 138 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) $25.97 $22.26 03/31/2015 16.67% 33.24%
LO 07/15/2014 Reynolds American Inc. (RAI) $67.46 $59.95 06/30/2015 12.53% 16.69%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $87.09 05/31/2015 9.08% 13.59%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $4.00 $3.69 09/30/2014 8.51% 3106.06%
MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) $22.60 $20.96 09/30/2014 7.82% 2855.92%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $16.94 06/30/2015 7.73% 10.30%
OABC 04/29/2014 Southside Bancshares Inc. (SBSI) $28.19 $26.20 12/31/2014 7.59% 29.77%
TWC 02/13/2014 Comcast Corporation (CMCSA) $155.94 $145.09 12/31/2014 7.48% 29.35%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.66 09/30/2014 7.23% 2638.55%
COV 06/15/2014 Medtronic, Inc. (MDT) $95.74 $89.98 01/31/2015 6.40% 18.85%

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 $25.97 $22.26 225,507 03/31/2015 16.67% 33.24%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $67.46 $59.95 1,294,079 06/30/2015 12.53% 16.69%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $87.09 2,903,461 05/31/2015 9.08% 13.59%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $4.00 $3.69 404 09/30/2014 8.51% 3106.06%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $20.96 115,958 09/30/2014 7.82% 2855.92%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $16.94 2,210,953 06/30/2015 7.73% 10.30%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $28.19 $26.20 42,189 12/31/2014 7.59% 29.77%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $155.94 $145.09 1,483,665 12/31/2014 7.48% 29.35%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.66 69,748 09/30/2014 7.23% 2638.55%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $95.74 $89.98 4,895,863 01/31/2015 6.40% 18.85%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $3.50 $3.29 36,797 09/30/2014 6.23% 2274.49%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.49 $9.89 1,609,369 12/31/2014 6.06% 23.79%
+ TRLA 07/28/2014 Zillow, Inc. (Z) All Stock $3.5 billion $54.09 $51.29 535,113 03/31/2015 5.46% 10.90%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.35 952,602 12/31/2014 5.24% 20.57%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.60 $21.69 104 11/15/2014 4.20% 32.60%
+ TRW 09/15/2014 ZF Friedrichshafen AG (“ZF”) (N/A) All Cash $13.5 billion $105.60 $101.81 1,727,102 06/30/2015 3.72% 4.96%
+ BYI 08/01/2014 Scientific Games Corporation (SGMS) All Cash $5.1 billion $83.30 $80.52 462,488 01/31/2015 3.45% 10.16%
+ CMSB 09/25/2014 Putnam County Savings Bank (N/A) All Cash $25.4 million $13.25 $12.83 21,660 06/30/2015 3.27% 4.36%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $66.88 $64.91 274,508 06/30/2015 3.04% 4.04%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $20.26 $19.71 339,409 01/31/2015 2.81% 8.27%
+ CPWR 09/02/2014 Thoma Bravo, LLC (N/A) All Cash $2.5 billion $10.92 $10.66 3,383,358 01/31/2015 2.44% 7.18%
+ SIAL 09/22/2014 Merck KGaA (N/A) All Cash $17 billion $140.00 $136.77 1,241,940 06/30/2015 2.36% 3.15%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $18.58 $18.19 1,070 12/31/2014 2.12% 8.34%
+ CNVR 09/11/2014 Alliance Data Systems Corporation (ADS) Special Conditions $2.3 billion $35.00 $34.34 1,200,716 12/31/2014 1.92% 7.54%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $29.01 901 09/30/2014 1.86% 679.42%
+ GRT 09/16/2014 Washington Prime Group Inc. (WPG) Cash Plus Stock $4.3 billion $13.84 $13.59 4,574,653 03/31/2015 1.86% 3.71%
+ BKYF 09/08/2014 BB&T Corporation (BBT) Cash Plus Stock $363 million $47.40 $46.55 105,138 03/31/2015 1.83% 3.65%
+ EPB 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $40.93 $40.22 1,526,008 12/31/2014 1.77% 6.95%
+ VIAS 09/22/2014 TTM Technologies Inc. (TTMI) Cash Plus Stock $927 million $16.20 $15.92 28,903 06/30/2015 1.77% 2.35%
+ CNQR 09/18/2014 SAP SE (SAP) All Cash $8.3 billion $129.00 $126.78 1,430,939 03/31/2015 1.75% 3.49%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $79.89 $78.57 993,015 03/31/2015 1.68% 3.35%
+ KMP 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $94.96 $93.45 1,014,527 12/31/2014 1.62% 6.35%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $22.00 N/A 03/31/2015 1.59% 3.17%
+ IRF 08/20/2014 Infineon Technologies AG (IFNNY) All Cash $2.4 billion $40.00 $39.38 1,639,937 01/31/2015 1.57% 4.63%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $19.31 $19.01 37,779 12/31/2014 1.56% 6.11%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $19.90 $19.63 1,263,825 12/31/2014 1.37% 5.38%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.89 1,080,623 09/30/2015 1.34% 1.34%
+ KMR 08/10/2014 Kinder Morgan, Inc. (KMI) All Stock N/A $95.40 $94.15 332,156 12/31/2014 1.32% 5.19%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.68 $8.57 55,431 10/31/2014 1.25% 14.31%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (PEBO) Cash Plus Stock $109 million $29.83 $29.48 507 03/31/2015 1.18% 2.35%
+ LPDX 09/25/2014 Laboratory Corp. of America Holdings (LH) All Cash $85.3 million $5.25 $5.19 375,810 12/31/2014 1.16% 4.54%
+ PSMI 08/22/2014 Murata Electronics North America, Inc. (N/A) All Cash $471 million $12.50 $12.36 535,435 01/31/2015 1.13% 3.33%
+ FRF 08/12/2014 Tiptree Financial Inc. (TIPT) All Cash $218 million $10.00 $9.89 17,908 01/31/2015 1.11% 3.27%
+ ENVE 06/30/2014 Consolidated Communications Holdings Inc. (CNSL) All Stock $350 million $19.04 $18.85 17,646 12/31/2014 1.00% 3.91%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $41.21 $40.82 505,886 12/31/2014 0.95% 3.71%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.47 1,084,659 01/31/2015 0.76% 2.25%
+ MGAM 09/08/2014 Global Cash Access Holdings, Inc. (GCA) All Cash $1.2 billion $36.50 $36.30 223,336 03/31/2015 0.55% 1.10%
+ DRC 09/21/2014 Siemens (N/A) All Cash $7.6 billion $83.00 $82.61 2,312,747 06/30/2015 0.47% 0.63%
+ COBR 08/28/2014 Monomoy Capital Partners II, L.P. (N/A) All Cash N/A $4.30 $4.28 383,682 12/31/2014 0.47% 1.83%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $14.06 $14.00 2,894,588 12/31/2014 0.43% 1.71%
+ 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 $11.95 317,618 12/31/2014 0.42% 1.64%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $32.11 $31.98 627,999 12/31/2014 0.40% 1.55%
+ BNNY 09/08/2014 General Mills, Inc. (GIS) All Cash $820 million $46.00 $45.88 1,246,255 12/31/2014 0.26% 1.03%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $85.80 101,599 12/31/2014 0.23% 0.91%
+ URS 07/13/2014 AECOM Technology Corporation (ACM) Cash Plus Stock $6 billion $58.36 $58.25 348,847 10/31/2014 0.19% 2.15%
+ BOLT 09/03/2014 Teledyne Technologies Inc. (TDY) All Cash $171 million $22.00 $21.96 18,892 12/31/2014 0.18% 0.71%
+ ITMN 08/24/2014 Roche (N/A) All Cash $8.3 billion $74.00 $73.89 5,707,473 12/31/2014 0.15% 0.58%
+ MDCI 06/25/2014 Owens & Minor, Inc. (OMI) All Cash $208 million $13.80 $13.78 68,186 12/31/2014 0.15% 0.57%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.35 2,315 12/31/2014 0.00% 0.00%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $10.52 $10.53 881,789 12/31/2014 -0.08% -0.32%
+ COBK 09/10/2014 Cape Bancorp, Inc. (CBNJ) All Stock $55 million $13.27 $13.31 3,778 03/31/2015 -0.28% -0.56%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $21.47 $21.55 3,751 09/30/2014 -0.37% -136.33%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $41.74 $41.91 4,778 12/31/2014 -0.42% -1.63%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $40.29 $40.50 1,198 12/31/2014 -0.53% -2.08%
+ PEOP 08/05/2014 Independent Bank Corp. (INDB) All Stock $130.6 million $19.98 $20.15 2,170 03/31/2015 -0.86% -1.72%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.04 $7.14 149,900 12/31/2014 -1.38% -5.40%
+ TAM 09/11/2014 Eastman Chemical Co. (EMN) All Cash $2.8 billion $26.00 $26.50 568,983 12/31/2014 -1.89% -7.41%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $77.54 925,080 01/31/2015 -3.92% -11.54%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $5.45 696,338 01/31/2015 -16.51% -48.61%
+ 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 $23.99 27,733 12/31/2014 -18.72% -73.46%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $14.74 $31.03 1,552,041 12/31/2014 -52.50% -206.05%

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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