Merger Arbitrage Mondays – October 6, 2014

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October 5, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with seven 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 125
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 29
Stock Deals 19
Stock & Cash Deals 18
Special Conditions 7
Total Number of Pending Deals 73
Total Deal Size $564.57 billion

New Deals:

  1. The acquisition of Athlon Energy (ATHL) by Encana Corporation (ECA) for $7.1 billion or $58.50 per share in cash.
  2. The acquisition of Simplicity Bancorp (SMPL) by HomeStreet (HMST) in an all stock deal. Under the terms of the agreement, Simplicity stockholders are expected to receive one share of HomeStreet common stock for each share owned of Simplicity common stock, subject to adjustment if HomeStreet’s closing stock price during a specified measurement period prior to closing is more than $20 or less than $15 per share.
  3. The acquisition of TIBCO Software (TIBX) by Vista Equity Partners for $4.3 billion or $24.00 per share in cash.
  4. The acquisition of Einstein Noah Restaurant Group (BAGL) by JAB Holding Company for $374 million or $20.25 per share in cash.
  5. The acquisition of Ambit Biosciences Corporation (AMBI) by Daiichi Sankyo Company for $410 million or $15.00 per share in cash. In addition to the upfront cash payment, each Ambit Biosciences stockholder will receive one Contingent Value Right (CVR), entitling the holder to receive an additional cash payment of up to $4.50 for each share they own if certain commercialization related milestones are achieved.
  6. The acquisition of Move (MOVE) by News Corp for $950 million or $21.00 per share in cash.
  7. The acquisition of CareFusion Corporation (CFN) by Becton, Dickinson and Company (BDX) in a cash plus stock deal. Under the terms of the agreement, shareholders of CareFusion Corporation will receive $49.00 in cash and 0.0777 of a share of BD for each share of CareFusion.

Closed Deals:

  1. The acquisition of InterMune (ITMN) by Roche on September 29, 2014. It took 36 days for this deal to be completed.
  2. The acquisition of Medical Action Industries (MDCI) by Owens & Minor (OMI) on September 30, 2014. It took 97 days for this deal to be completed.
  3. The acquisition of Chindex International (CHDX) by 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 on September 30, 2014. It took 225 days for this deal to be completed.
  4. The acquisition of PokerTek (PTEK) by Multimedia Games on October 1, 2014. It took 154 days for this deal to be completed.
  5. The acquisition of North Valley Bancorp (NOVB) by TriCo Bancshares (TCBK) on October 5, 2014. It took 257 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

CFN 10/05/2014 Becton, Dickinson and Company (BDX) $58.00 $46.17 06/30/2015 25.62% 35.03%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $4.05 $3.60 10/30/2014 12.63% 192.01%
LO 07/15/2014 Reynolds American Inc. (RAI) $67.79 $60.27 06/30/2015 12.48% 17.06%
LIN 03/22/2014 Media General, Inc. (MEG) $25.97 $23.35 03/31/2015 11.22% 23.27%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $87.70 05/31/2015 8.32% 12.82%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.65 09/30/2014 7.88% -479.29%
MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) $22.60 $21.11 10/08/2014 7.06% 1288.13%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $17.05 06/30/2015 7.04% 9.62%
TWC 02/13/2014 Comcast Corporation (CMCSA) $154.24 $144.51 12/31/2014 6.74% 28.59%
HCBK 08/27/2012 M&T Bank Corporation (MTB) $10.37 $9.73 12/31/2014 6.53% 27.70%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ CFN 10/05/2014 Becton, Dickinson and Company (BDX) Cash Plus Stock $12.2 billion $58.00 $46.17 1,156,750 06/30/2015 25.62% 35.03%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $4.05 $3.60 100 10/30/2014 12.63% 192.01%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $67.79 $60.27 2,069,376 06/30/2015 12.48% 17.06%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $25.97 $23.35 255,909 03/31/2015 11.22% 23.27%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $87.70 2,391,460 05/31/2015 8.32% 12.82%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.65 28,896 09/30/2014 7.88% 0.00%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $21.11 189,696 10/08/2014 7.06% 1288.13%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $17.05 3,991,579 06/30/2015 7.04% 9.62%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $154.24 $144.51 2,001,759 12/31/2014 6.74% 28.59%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.37 $9.73 3,314,885 12/31/2014 6.53% 27.70%
+ TRLA 07/28/2014 Zillow, Inc. (Z) All Stock $3.5 billion $50.05 $47.31 628,768 03/31/2015 5.80% 12.02%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.36 2,736,446 12/31/2014 5.21% 22.11%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $78.98 $75.70 2,254,276 03/31/2015 4.33% 8.98%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $27.94 $26.86 13,107 12/31/2014 4.01% 17.03%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.60 $21.74 23,627 11/15/2014 3.96% 36.12%
+ VIAS 09/22/2014 TTM Technologies Inc. (TTMI) Cash Plus Stock $927 million $16.02 $15.44 8,557 06/30/2015 3.74% 5.12%
+ TRW 09/15/2014 ZF Friedrichshafen AG (“ZF”) (N/A) All Cash $13.5 billion $105.60 $101.83 1,161,193 06/30/2015 3.70% 5.06%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $97.35 $93.89 20,526,190 01/31/2015 3.68% 11.49%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $68.00 $65.62 348,845 06/30/2015 3.62% 4.95%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $19.54 $18.87 278,073 01/31/2015 3.57% 11.15%
+ GRT 09/16/2014 Washington Prime Group Inc. (WPG) Cash Plus Stock $4.3 billion $13.85 $13.44 5,262,465 03/31/2015 3.04% 6.31%
+ SIAL 09/22/2014 Merck KGaA (N/A) All Cash $17 billion $140.00 $136.08 1,057,839 06/30/2015 2.88% 3.94%
+ CMSB 09/25/2014 Putnam County Savings Bank (N/A) All Cash $25.4 million $13.25 $12.88 778 06/30/2015 2.87% 3.93%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $19.43 $18.97 12,341 12/31/2014 2.44% 10.34%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $18.59 $18.15 400 12/31/2014 2.42% 10.27%
+ SMPL 09/29/2014 HomeStreet, Inc. (HMST) All Stock N/A $17.00 $16.60 174,850 03/31/2015 2.41% 5.00%
+ CPWR 09/02/2014 Thoma Bravo, LLC (N/A) All Cash $2.5 billion $10.92 $10.67 2,179,923 01/31/2015 2.34% 7.31%
+ MGAM 09/08/2014 Global Cash Access Holdings, Inc. (GCA) All Cash $1.2 billion $36.50 $35.74 450,275 03/31/2015 2.13% 4.41%
+ BYI 08/01/2014 Scientific Games Corporation (SGMS) All Cash $5.1 billion $83.30 $81.64 952,353 01/31/2015 2.03% 6.34%
+ ENVE 06/30/2014 Consolidated Communications Holdings Inc. (CNSL) All Stock $350 million $18.52 $18.16 13,328 12/31/2014 1.98% 8.41%
+ BKYF 09/08/2014 BB&T Corporation (BBT) Cash Plus Stock $363 million $47.48 $46.57 53,812 03/31/2015 1.96% 4.07%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (PEBO) Cash Plus Stock $109 million $30.33 $29.79 400 03/31/2015 1.81% 3.76%
+ CNVR 09/11/2014 Alliance Data Systems Corporation (ADS) Special Conditions $2.3 billion $35.00 $34.39 2,465,168 12/31/2014 1.77% 7.53%
+ TIBX 09/29/2014 Vista Equity Partners (N/A) All Cash $4.3 billion $24.00 $23.59 7,435,440 12/31/2014 1.74% 7.38%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.79 1,717,918 09/30/2015 1.72% 1.75%
+ KMP 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $95.99 $94.45 2,214,412 12/31/2014 1.63% 6.94%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $22.00 N/A 03/31/2015 1.59% 3.30%
+ 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%
+ EPB 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $41.38 $40.75 814,321 12/31/2014 1.54% 6.53%
+ IRF 08/20/2014 Infineon Technologies AG (IFNNY) All Cash $2.4 billion $40.00 $39.40 2,044,387 01/31/2015 1.52% 4.75%
+ CNQR 09/18/2014 SAP SE (SAP) All Cash $8.3 billion $129.00 $127.09 1,573,822 03/31/2015 1.50% 3.12%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $18.88 $18.62 2,590,927 12/31/2014 1.38% 5.86%
+ KMR 08/10/2014 Kinder Morgan, Inc. (KMI) All Stock N/A $96.56 $95.41 680,031 12/31/2014 1.21% 5.13%
+ LPDX 09/25/2014 Laboratory Corp. of America Holdings (LH) All Cash $85.3 million $5.25 $5.19 81,797 12/31/2014 1.16% 4.91%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $31.80 $31.44 1,136,884 12/31/2014 1.15% 4.87%
+ DRC 09/21/2014 Siemens (N/A) All Cash $7.6 billion $83.00 $82.13 2,458,527 06/30/2015 1.06% 1.45%
+ PSMI 08/22/2014 Murata Electronics North America, Inc. (N/A) All Cash $471 million $12.50 $12.37 186,307 01/31/2015 1.05% 3.28%
+ 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 $11.88 695,547 12/31/2014 1.01% 4.29%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $40.53 $40.13 493,520 12/31/2014 0.99% 4.20%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.58 $8.50 76,402 10/31/2014 0.94% 13.67%
+ FRF 08/12/2014 Tiptree Financial Inc. (TIPT) All Cash $218 million $10.00 $9.91 52,131 01/31/2015 0.91% 2.83%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $13.01 $12.90 3,753,095 12/31/2014 0.85% 3.60%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.46 717,274 01/31/2015 0.78% 2.43%
+ ATHL 09/29/2014 Encana Corporation (ECA) All Cash $7.1 billion $58.50 $58.20 10,282,794 12/31/2014 0.52% 2.19%
+ COBR 08/28/2014 Monomoy Capital Partners II, L.P. (N/A) All Cash N/A $4.30 $4.28 58,887 12/31/2014 0.47% 1.98%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.18 $7.15 98,246 12/31/2014 0.44% 1.88%
+ BOLT 09/03/2014 Teledyne Technologies Inc. (TDY) All Cash $171 million $22.00 $21.91 76,159 12/31/2014 0.41% 1.74%
+ URS 07/13/2014 AECOM Technology Corporation (ACM) Cash Plus Stock $6 billion $57.15 $56.94 786,364 10/31/2014 0.37% 5.35%
+ MOVE 09/30/2014 News Corp (N/A) All Cash $950 million $21.00 $20.93 3,053,454 12/31/2014 0.33% 1.42%
+ BNNY 09/08/2014 General Mills, Inc. (GIS) All Cash $820 million $46.00 $45.90 961,541 12/31/2014 0.22% 0.92%
+ MEAS 06/18/2014 TE Connectivity Ltd. (TEL) All Cash $1.7 billion $86.00 $85.87 43,394 12/31/2014 0.15% 0.64%
+ BAGL 09/29/2014 JAB Holding Company (N/A) All Cash $374 million $20.25 $20.23 161,767 12/31/2014 0.10% 0.42%
+ COBK 09/10/2014 Cape Bancorp, Inc. (CBNJ) All Stock $55 million $13.26 $13.25 10,608 03/31/2015 0.07% 0.14%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $10.59 $10.61 893,053 12/31/2014 -0.18% -0.78%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $3.39 $3.40 148,953 09/30/2014 -0.25% 15.45%
+ TAM 09/11/2014 Eastman Chemical Co. (EMN) All Cash $2.8 billion $26.00 $26.07 89,197 12/31/2014 -0.27% -1.14%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $39.90 $40.08 700 11/01/2014 -0.45% -6.30%
+ THRD 06/04/2014 National Penn Bancshares Inc. (NPBC) All Stock $138 million $41.06 $41.54 11,024 12/31/2014 -1.15% -4.90%
+ PEOP 08/05/2014 Independent Bank Corp. (INDB) All Stock $130.6 million $19.94 $20.24 8,874 03/31/2015 -1.46% -3.04%
+ AMBI 09/29/2014 Daiichi Sankyo Company, Ltd. (N/A) All Cash $410 million $15.00 $15.38 44,111 12/31/2014 -2.47% -10.49%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $78.22 989,099 01/31/2015 -4.76% -14.84%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $5.37 225,231 01/31/2015 -15.27% -47.64%
+ AUXL 06/26/2014 QLT Inc. (QLTI) All Stock N/A $13.23 $30.35 623,512 12/31/2014 -56.40% -239.36%

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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