Merger Arbitrage Mondays – October 20, 2014

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October 19, 2014 | Merger Arbitrage | | Author Asif

Merger Activity decreased last week with three new mergers announced and two 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 129
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 29
Stock Deals 18
Stock & Cash Deals 20
Special Conditions 8
Total Number of Pending Deals 75
Total Deal Size $577.68 billion

New Deals:

  1. The acquisition of Atlas Pipeline Partners (APL) by Targa Resources Partners (NGLS) for $5.8 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Atlas Pipeline Partners will receive a fixed ratio of 0.5846 units of Targa Resources Partners and $1.26 for each outstanding Atlas Pipeline common unit.
  2. The acquisition of Atlas Energy (ATLS) by Targa Resources (TRGP) for $1.9 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of Atlas Energy will receive $9.12 in cash, 0.1809 of a share of TRGP common stock and a pro rata share in 100% of ATLS’ distributed non-midstream assets.
  3. The acquisition of Penford Corporation (PENX) by Ingredion Incorporated (INGR) for $340 million or $19.00 per share in cash.

Closed Deals:

  1. The acquisition of Enventis Corporation (ENVE) by Consolidated Communications Holdings (CNSL) on October 16, 2014. It took 108 days for this deal to be completed.
  2. The acquisition of URS Corporation (URS) by AECOM Technology Corporation (ACM) on October 17, 2014. It took 96 days for this deal to be completed.

Top 10 deals with largest spread:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

LO 07/15/2014 Reynolds American Inc. (RAI) $67.51 $58.59 06/30/2015 15.23% 21.97%
COV 06/15/2014 Medtronic, Inc. (MDT) $94.45 $82.20 01/31/2015 14.91% 52.82%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $16.00 06/30/2015 14.06% 20.29%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $4.05 $3.605 10/30/2014 12.47% 455.11%
LIN 03/22/2014 Media General, Inc. (MEG) $25.97 $23.15 03/31/2015 12.18% 27.45%
MGAM 09/08/2014 Global Cash Access Holdings, Inc. (GCA) $36.50 $32.63 03/31/2015 11.86% 26.72%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $85.02 05/31/2015 11.74% 19.21%
CPWR 09/02/2014 Thoma Bravo, LLC (N/A) $10.92 $9.86 01/31/2015 10.75% 38.10%
AUXL 10/09/2014 Endo International plc (ENDP) $33.25 $30.63 06/30/2015 8.55% 12.34%
OVRL 05/15/2014 Sphere 3D Corporation (ANY) $2.76 $2.54 09/30/2014 8.55% -156.06%

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 $67.51 $58.59 4,759,072 06/30/2015 15.23% 21.97%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $94.45 $82.20 18,361,364 01/31/2015 14.91% 52.82%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $16.00 2,257,620 06/30/2015 14.06% 20.29%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $4.05 $3.605 31,351 10/30/2014 12.47% 455.11%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $25.97 $23.15 287,018 03/31/2015 12.18% 27.45%
+ MGAM 09/08/2014 Global Cash Access Holdings, Inc. (GCA) All Cash $1.2 billion $36.50 $32.63 352,077 03/31/2015 11.86% 26.72%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $85.02 2,629,817 05/31/2015 11.74% 19.21%
+ CPWR 09/02/2014 Thoma Bravo, LLC (N/A) All Cash $2.5 billion $10.92 $9.86 3,516,846 01/31/2015 10.75% 38.10%
+ AUXL 10/09/2014 Endo International plc (ENDP) Special Conditions $2.6 billion $33.25 $30.63 1,883,111 06/30/2015 8.55% 12.34%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $2.76 $2.54 14,452 09/30/2014 8.55% 0.00%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.65 3,715 09/30/2014 7.88% 0.00%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $145.71 $135.35 4,053,683 12/31/2014 7.65% 38.78%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $33.69 2,230,322 12/31/2014 7.30% 37.02%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $76.87 $71.64 2,697,021 03/31/2015 7.30% 16.45%
+ BYI 08/01/2014 Scientific Games Corporation (SGMS) All Cash $5.1 billion $83.30 $77.73 657,148 01/31/2015 7.17% 25.39%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $9.48 $8.88 8,188,787 12/31/2014 6.80% 34.46%
+ TRLA 07/28/2014 Zillow, Inc. (Z) All Stock $3.5 billion $46.69 $43.83 740,235 03/31/2015 6.52% 14.68%
+ DWSN 10/09/2014 TGC Industries Inc. (TGE) All Stock N/A $18.59 $17.45 91,113 03/31/2015 6.51% 14.66%
+ SMPL 09/29/2014 HomeStreet, Inc. (HMST) All Stock N/A $17.02 $16.14 45,002 03/31/2015 5.45% 12.28%
+ TRW 09/15/2014 ZF Friedrichshafen AG (“ZF”) (N/A) All Cash $13.5 billion $105.60 $100.50 1,334,486 06/30/2015 5.07% 7.32%
+ APL 10/13/2014 Targa Resources Partners LP (NGLS) Cash Plus Stock $5.8 billion $38.39 $36.64 1,147,472 03/31/2015 4.79% 10.78%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $71.81 $68.72 421,194 06/30/2015 4.50% 6.49%
+ SIAL 09/22/2014 Merck KGaA (N/A) All Cash $17 billion $140.00 $134.03 1,215,496 06/30/2015 4.45% 6.43%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $21.66 288,746 10/08/2014 4.34% 0.00%
+ TIBX 09/29/2014 Vista Equity Partners (N/A) All Cash $4.3 billion $24.00 $23.02 4,722,090 12/31/2014 4.26% 21.58%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $27.77 $26.65 19,069 12/31/2014 4.21% 21.36%
+ CFN 10/05/2014 Becton, Dickinson and Company (BDX) Cash Plus Stock $12.2 billion $58.46 $56.34 4,318,521 06/30/2015 3.76% 5.42%
+ CMSB 09/25/2014 Putnam County Savings Bank (N/A) All Cash $25.4 million $13.25 $12.86 3,578 06/30/2015 3.03% 4.38%
+ DRC 09/21/2014 Siemens (N/A) All Cash $7.6 billion $83.00 $80.75 1,766,525 06/30/2015 2.79% 4.02%
+ GRT 09/16/2014 Washington Prime Group Inc. (WPG) Cash Plus Stock $4.3 billion $13.70 $13.34 6,312,469 03/31/2015 2.68% 6.04%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $20.43 $19.90 22,882 12/31/2014 2.64% 13.40%
+ BKYF 09/08/2014 BB&T Corporation (BBT) Cash Plus Stock $363 million $45.04 $43.96 28,115 03/31/2015 2.46% 5.55%
+ GTIV 10/09/2014 Kindred Healthcare Inc. (KND) Cash Plus Stock $1.8 billion $19.69 $19.24 271,770 03/31/2015 2.35% 5.29%
+ CNVR 09/11/2014 Alliance Data Systems Corporation (ADS) Special Conditions $2.3 billion $35.00 $34.20 1,873,512 12/31/2014 2.34% 11.86%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.66 1,356,677 09/30/2015 2.21% 2.34%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $17.14 $16.77 4,266,164 12/31/2014 2.18% 11.04%
+ VIAS 09/22/2014 TTM Technologies Inc. (TTMI) Cash Plus Stock $927 million $15.54 $15.21 8,137 06/30/2015 2.15% 3.11%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $15.54 $15.25 1,076,893 01/31/2015 1.92% 6.81%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (PEBO) Cash Plus Stock $109 million $30.89 $30.32 1,013 03/31/2015 1.88% 4.23%
+ PENX 10/15/2014 Ingredion Incorporated (INGR) All Cash $340 million $19.00 $18.66 72,703 12/31/2014 1.82% 9.24%
+ KMP 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $91.50 $89.91 3,333,613 12/31/2014 1.77% 8.95%
+ IRF 08/20/2014 Infineon Technologies AG (IFNNY) All Cash $2.4 billion $40.00 $39.33 1,127,770 01/31/2015 1.70% 6.04%
+ PEOP 08/05/2014 Independent Bank Corp. (INDB) All Stock $130.6 million $20.74 $20.40 40,179 03/31/2015 1.69% 3.80%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $11.21 $11.03 3,024,855 12/31/2014 1.63% 8.27%
+ FRF 08/12/2014 Tiptree Financial Inc. (TIPT) All Cash $218 million $10.00 $9.84 15,375 01/31/2015 1.63% 5.76%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $22.00 N/A 03/31/2015 1.59% 3.58%
+ SPBC 05/05/2014 Green Bank (N/A) All Cash $46.2 million $29.55 $29.10 N/A 09/30/2014 1.55% 0.00%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.03 $6.93 129,369 12/31/2014 1.43% 7.27%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.31 $22.00 793 11/15/2014 1.41% 19.83%
+ EPB 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $39.44 $38.89 2,663,288 12/31/2014 1.41% 7.16%
+ KMR 08/10/2014 Kinder Morgan, Inc. (KMI) All Stock N/A $91.47 $90.21 841,478 12/31/2014 1.40% 7.08%
+ TAM 09/11/2014 Eastman Chemical Co. (EMN) All Cash $2.8 billion $26.00 $25.65 838,688 12/31/2014 1.36% 6.92%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $10.48 $10.34 6,131,888 12/31/2014 1.34% 6.79%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $30.71 $30.32 373,668 12/31/2014 1.29% 6.55%
+ 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 $11.85 883,792 12/31/2014 1.27% 6.42%
+ CNQR 09/18/2014 SAP SE (SAP) All Cash $8.3 billion $129.00 $127.53 999,737 03/31/2015 1.15% 2.60%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $38.86 $38.43 811,879 12/31/2014 1.12% 5.69%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.32 $8.23 82,458 10/31/2014 1.11% 36.89%
+ ATHL 09/29/2014 Encana Corporation (ECA) All Cash $7.1 billion $58.50 $57.93 4,107,319 12/31/2014 0.98% 4.99%
+ PSMI 08/22/2014 Murata Electronics North America, Inc. (N/A) All Cash $471 million $12.50 $12.39 228,178 01/31/2015 0.89% 3.15%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.44 750,835 01/31/2015 0.81% 2.86%
+ LPDX 09/25/2014 Laboratory Corp. of America Holdings (LH) All Cash $85.3 million $5.25 $5.21 69,130 12/31/2014 0.77% 3.89%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $18.27 $18.13 330 12/31/2014 0.76% 3.86%
+ MOVE 09/30/2014 News Corp (N/A) All Cash $950 million $21.00 $20.86 2,900,625 12/31/2014 0.67% 3.40%
+ BOLT 09/03/2014 Teledyne Technologies Inc. (TDY) All Cash $171 million $22.00 $21.88 85,024 12/31/2014 0.55% 2.78%
+ BAGL 09/29/2014 JAB Holding Company (N/A) All Cash $374 million $20.25 $20.18 216,196 12/31/2014 0.35% 1.76%
+ BNNY 09/08/2014 General Mills, Inc. (GIS) All Cash $820 million $46.00 $45.98 239,291 12/31/2014 0.04% 0.22%
+ COBK 09/10/2014 Cape Bancorp, Inc. (CBNJ) All Stock $55 million $12.89 $12.96 1,100 03/31/2015 -0.53% -1.19%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $38.97 $39.21 1,801 11/01/2014 -0.61% -18.63%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $39.98 $40.49 500 12/31/2014 -1.25% -6.33%
+ DRTX 10/06/2014 Actavis plc (ACT) All Cash $675 million $23.00 $23.64 272,438 01/31/2015 -2.71% -9.59%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $76.77 2,379,259 01/31/2015 -2.96% -10.48%
+ AMBI 09/29/2014 Daiichi Sankyo Company, Ltd. (N/A) All Cash $410 million $15.00 $15.55 32,402 12/31/2014 -3.54% -17.93%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $5.17 324,677 01/31/2015 -11.99% -42.50%
+ ATLS 10/13/2014 Targa Resources Corp. (TRGP) Cash Plus Stock $1.9 billion $31.44 $40.04 999,124 03/31/2015 -21.47% -48.37%

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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