Merger Arbitrage Mondays – September 8, 2014

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September 7, 2014 | Merger Arbitrage | | Author Asif

Merger Activity continued to stay flat last week with two 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 115
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 22
Stock Deals 19
Stock & Cash Deals 14
Special Conditions 7
Total Number of Pending Deals 62
Total Deal Size $479.96 billion

New Deals:

  1. The acquisition of Compuware Corporation (CPWR) by Thoma Bravo for $2.5 billion or approximately $10.92 per share in cash. The number is approximate because it includes an estimated payment $0.67 per Compuware share related to distribution of Covisint (COVS) shares owned by Compuware.
  2. The acquisition of Bolt Technology (BOLT) by Teledyne Technologies (TDY) for $171 million or $22.00 per share in cash.

Deal Updates:

  1. On September 5, 2014, Family Dollar Stores (FDO) announced that its Board of Directors unanimously rejected the revised, non-binding proposal made by Dollar General Corporation (DG) on September 2, 2014, on the basis of antitrust regulatory considerations.

Closed Deals:

  1. The acquisition of R.G. Barry Corporation (DFZ) by Mill Road Capital on September 4, 2014. It took 125 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 $1.98 11/15/2014 26.26% 140.97%
LO 07/15/2014 Reynolds American Inc. (RAI) $67.65 $59.80 06/30/2015 13.13% 16.25%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $3.99 $3.60 09/19/2014 10.71% 355.46%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $16.62 06/30/2015 9.81% 12.13%
LIN 03/22/2014 Media General, Inc. (MEG) $25.97 $23.68 03/31/2015 9.67% 17.30%
COV 06/15/2014 Medtronic, Inc. (MDT) $96.67 $88.44 01/31/2015 9.31% 23.43%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $87.26 05/31/2015 8.87% 12.22%
OABC 04/29/2014 Southside Bancshares Inc. (SBSI) $27.31 $25.59 12/31/2014 6.74% 21.56%
TWC 02/13/2014 Comcast Corporation (CMCSA) $160.14 $150.20 12/31/2014 6.62% 21.18%
MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) $22.60 $21.38 09/30/2014 5.71% 94.67%

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 $1.98 1,212,673 11/15/2014 26.26% 140.97%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $67.65 $59.80 1,626,723 06/30/2015 13.13% 16.25%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $3.99 $3.60 1,716 09/19/2014 10.71% 355.46%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $16.62 4,632,279 06/30/2015 9.81% 12.13%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $25.97 $23.68 258,074 03/31/2015 9.67% 17.30%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $96.67 $88.44 2,778,816 01/31/2015 9.31% 23.43%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $87.26 2,684,974 05/31/2015 8.87% 12.22%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $27.31 $25.59 27,331 12/31/2014 6.74% 21.56%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $160.14 $150.20 1,724,217 12/31/2014 6.62% 21.18%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $21.38 373,753 09/30/2014 5.71% 94.67%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.69 3,100 09/30/2014 5.33% 88.35%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.46 $9.98 1,020,837 12/31/2014 4.81% 15.40%
+ TRLA 07/28/2014 Zillow, Inc. (Z) All Stock $3.5 billion $60.92 $58.27 516,996 03/31/2015 4.54% 8.13%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $22.30 $21.38 385,266 01/31/2015 4.32% 10.88%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.70 834,861 12/31/2014 4.18% 13.38%
+ PTEK 04/30/2014 Multimedia Games, Inc. (N/A) All Cash N/A $1.35 $1.30 33,000 12/31/2014 3.85% 12.31%
+ BYI 08/01/2014 Scientific Games Corporation (SGMS) All Cash $5.1 billion $83.30 $80.39 198,511 01/31/2015 3.62% 9.11%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.60 $21.90 N/A 11/15/2014 3.20% 17.17%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $20.45 $19.89 13,558 12/31/2014 2.84% 9.08%
+ CPWR 09/02/2014 Thoma Bravo, LLC (N/A) All Cash $2.5 billion $10.92 $10.63 7,390,740 01/31/2015 2.73% 6.87%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (PEBO) Cash Plus Stock $109 million $30.14 $29.44 100 03/31/2015 2.39% 4.28%
+ EPB 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $41.80 $40.85 1,003,800 12/31/2014 2.33% 7.46%
+ KMP 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $96.98 $94.87 1,931,241 12/31/2014 2.22% 7.12%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.94 $8.75 71,052 10/31/2014 2.22% 15.31%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $21.87 275 03/31/2015 2.19% 3.93%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $69.98 $68.50 267,160 06/30/2015 2.16% 2.68%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $19.12 $18.72 351 12/31/2014 2.12% 6.78%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $42.58 $41.78 1,278 12/31/2014 1.91% 6.13%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $29.00 1,900 09/30/2014 1.90% 31.47%
+ PEOP 08/05/2014 Independent Bank Corp. (INDB) All Stock $130.6 million $20.48 $20.10 22,982 03/31/2015 1.89% 3.38%
+ KMR 08/10/2014 Kinder Morgan, Inc. (KMI) All Stock N/A $97.68 $95.91 614,055 12/31/2014 1.85% 5.91%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $3.41 $3.35 18,375 09/30/2014 1.81% 30.10%
+ CHRM 05/19/2014 Engadin Parent Limited (N/A) Special Conditions N/A $4.70 $4.62 3,185 09/30/2014 1.73% 28.73%
+ IRF 08/20/2014 Infineon Technologies AG (IFNNY) All Cash $2.4 billion $40.00 $39.40 1,567,459 01/31/2015 1.52% 3.83%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $11.14 $10.98 2,500,162 12/31/2014 1.46% 4.69%
+ ENVE 06/30/2014 Consolidated Communications Holdings Inc. (CNSL) All Stock $350 million $18.02 $17.76 50,401 12/31/2014 1.44% 4.62%
+ FRF 08/12/2014 Tiptree Financial Inc. (TIPT) All Cash $218 million $10.00 $9.87 82,057 01/31/2015 1.32% 3.32%
+ NOVB 01/21/2014 TriCo Bancshares (TCBK) All Stock $178.4 million $22.35 $22.08 7,983 09/30/2014 1.21% 20.05%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $20.62 $20.41 4,704,711 12/31/2014 1.03% 3.28%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $32.47 $32.15 217,030 12/31/2014 0.98% 3.15%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $15.52 $15.37 2,642,070 12/31/2014 0.95% 3.04%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $41.94 $41.60 339,176 12/31/2014 0.82% 2.62%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.51 401,983 01/31/2015 0.70% 1.77%
+ ITMN 08/24/2014 Roche (N/A) All Cash $8.3 billion $74.00 $73.49 2,986,437 12/31/2014 0.69% 2.22%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $81.25 $80.71 303,636 03/31/2015 0.67% 1.21%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $40.56 $40.35 100 12/31/2014 0.52% 1.65%
+ PSMI 08/22/2014 Murata Electronics North America, Inc. (N/A) All Cash $471 million $12.50 $12.44 195,942 01/31/2015 0.48% 1.21%
+ COBR 08/28/2014 Monomoy Capital Partners II, L.P. (N/A) All Cash N/A $4.30 $4.28 46,671 12/31/2014 0.47% 1.50%
+ BOLT 09/03/2014 Teledyne Technologies Inc. (TDY) All Cash $171 million $22.00 $21.91 579,831 12/31/2014 0.41% 1.32%
+ 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 $11.96 225,026 12/31/2014 0.33% 1.07%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $85.73 59,481 12/31/2014 0.31% 1.01%
+ URS 07/13/2014 AECOM Technology Corporation (ACM) Cash Plus Stock $6 billion $60.43 $60.37 202,258 10/31/2014 0.10% 0.68%
+ MCRS 06/23/2014 Oracle Corporation (ORCL) All Cash $4.6 billion $68.00 $67.99 294,227 12/31/2014 0.01% 0.05%
+ MDCI 06/25/2014 Owens & Minor, Inc. (OMI) All Cash $208 million $13.80 $13.80 24,363 12/31/2014 0.00% 0.00%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $4.55 1,061,271 01/31/2015 0.00% 0.00%
+ ARX 05/20/2014 Cobham plc (N/A) All Cash $1.46 billion $10.50 $10.53 129,896 09/30/2014 -0.28% -4.73%
+ OBAF 04/08/2014 F.N.B. Corporation (FNB) All Stock $94 million $22.53 $22.61 7,050 09/30/2014 -0.36% -5.90%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.49 1,261,446 09/30/2015 -0.87% -0.82%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.10 $7.29 165,178 12/31/2014 -2.62% -8.38%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $79.11 6,121,900 01/31/2015 -5.83% -14.67%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $18.44 $20.15 725,756 12/31/2014 -8.49% -27.19%
+ 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 $23.88 99,969 12/31/2014 -18.34% -58.73%

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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