Merger Arbitrage Mondays – November 3, 2014

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November 2, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with five new mergers announced. None of the pending deals closed last week.

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 132
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 31
Stock Deals 21
Stock & Cash Deals 21
Special Conditions 8
Total Number of Pending Deals 81
Total Deal Size $639.99 billion

New Deals:

  1. The acquisition of Wright Medical Group (WMGI) by Tornier N.V. (TRNX) for $1.72 billion. Under the terms of the agreement, shareholders of Wright Medical Group will receive 1.0309 ordinary shares of Tornier in exchange for each outstanding share of Wright common stock.
  2. The acquisition of Chiquita Brands International (CQB) by Cutrale-Safra group for $1.3 billion or $14.50 per share in cash.
  3. The acquisition of Williams Partners (WPZ) by Access Midstream Partners (ACMP) in an all stock deal. Under the terms of the merger agreement, WPZ will merge with a subsidiary of ACMP in a unit-for-unit exchange at a ratio of 0.86672 ACMP common units per WPZ common unit held by the WPZ public unit holders. Prior to the completion of the merger, ACMP will effect a subdivision of its common units and each public unitholder of ACMP will receive 0.06152 additional ACMP common units for each ACMP common unit they hold. In the aggregate, the public unit holders of ACMP will receive approximately $3.74 per public ACMP common unit, based on the closing price of ACMP as of October 24, 2014.
  4. The acquisition of ESB Financial (ESBF) by WesBanco (WSBC) for $324.4 million in a cash plus stock deal. Under the terms of the agreement, shareholders of ESB Financial will receive 0.502 shares of WesBanco common stock and cash in the amount of $1.76 per share for each share of ESB common stock.
  5. The acquisition of Aviv (AVIV) by Omega Healthcare Investors (OHI) for $3 billion in an all stock deal. Under the terms of the agreement, Aviv shareholders will receive a fixed exchange ratio of 0.90 Omega shares for each share of Aviv common stock they own.

Deal Updates:

  1. On October 31, 2014, Compuware (CPWR) announced that it has completed the spin-off of Covisint (COVS).

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.59 12/31/2014 11.95% 75.20%
LO 07/15/2014 Reynolds American Inc. (RAI) $68.80 $61.50 06/30/2015 11.87% 18.13%
IGT 07/16/2014 GTECH S.p.A. (GTKYY) $18.25 $16.39 06/30/2015 11.35% 17.33%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $4.06 $3.70 10/30/2014 9.79% -893.14%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $86.79 05/31/2015 9.46% 16.52%
COV 06/15/2014 Medtronic, Inc. (MDT) $100.35 $92.44 01/31/2015 8.56% 35.10%
LIN 03/22/2014 Media General, Inc. (MEG) $25.97 $23.93 03/31/2015 8.52% 21.02%
TWC 02/13/2014 Comcast Corporation (CMCSA) $159.13 $147.21 12/31/2014 8.10% 50.96%
CPWR 09/02/2014 Thoma Bravo, LLC (N/A) $10.92 $10.15 01/31/2015 7.59% 31.11%
HCBK 08/27/2012 M&T Bank Corporation (MTB) $10.27 $9.65 12/31/2014 6.39% 40.22%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.59 4,956 12/31/2014 11.95% 75.20%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $68.80 $61.50 2,507,232 06/30/2015 11.87% 18.13%
+ IGT 07/16/2014 GTECH S.p.A. (GTKYY) Special Conditions $6.4 billion $18.25 $16.39 2,330,104 06/30/2015 11.35% 17.33%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) All Stock $17.9 million $4.06 $3.70 1,892 10/30/2014 9.79% 0.00%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $86.79 3,240,348 05/31/2015 9.46% 16.52%
+ COV 06/15/2014 Medtronic, Inc. (MDT) Cash Plus Stock $42.9 billion $100.35 $92.44 3,662,079 01/31/2015 8.56% 35.10%
+ LIN 03/22/2014 Media General, Inc. (MEG) Special Conditions $2.6 billion $25.97 $23.93 49,414 03/31/2015 8.52% 21.02%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $159.13 $147.21 2,999,317 12/31/2014 8.10% 50.96%
+ CPWR 09/02/2014 Thoma Bravo, LLC (N/A) All Cash $2.5 billion $10.92 $10.15 1,793,021 01/31/2015 7.59% 31.11%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.27 $9.65 5,959,381 12/31/2014 6.39% 40.22%
+ SMPL 09/29/2014 HomeStreet, Inc. (HMST) All Stock N/A $17.42 $16.57 8,474 03/31/2015 5.13% 12.65%
+ WPZ 10/27/2014 Access Midstream Partners, L.P. (ACMP) All Stock $50 billion $53.99 $51.55 1,671,497 01/31/2015 4.73% 19.40%
+ MGAM 09/08/2014 Global Cash Access Holdings, Inc. (GCA) All Cash $1.2 billion $36.50 $34.90 292,928 03/31/2015 4.58% 11.31%
+ PEOP 08/05/2014 Independent Bank Corp. (INDB) All Stock $130.6 million $22.53 $21.58 6,794 03/31/2015 4.42% 10.90%
+ OABC 04/29/2014 Southside Bancshares Inc. (SBSI) Cash Plus Stock $307 million $28.10 $26.96 67,601 12/31/2014 4.22% 26.57%
+ TRW 09/15/2014 ZF Friedrichshafen AG (“ZF”) (N/A) All Cash $13.5 billion $105.60 $101.35 942,978 06/30/2015 4.19% 6.40%
+ BTUI 10/22/2014 Amtech Systems Inc. (ASYS) All Stock N/A $3.47 $3.33 22,680 03/31/2015 4.07% 10.03%
+ QRE 07/24/2014 Breitburn Energy Partners L.P. (BBEP) All Stock $3 billion $17.04 $16.40 336,802 01/31/2015 3.91% 16.03%
+ SWY 03/06/2014 AB Acquisition LLC (N/A) Special Conditions N/A $36.15 $34.86 1,820,861 12/31/2014 3.70% 23.29%
+ BYI 08/01/2014 Scientific Games Corporation (SGMS) All Cash $5.1 billion $83.30 $80.40 1,233,974 01/31/2015 3.61% 14.79%
+ TRLA 07/28/2014 Zillow, Inc. (Z) All Stock $3.5 billion $48.28 $46.65 717,480 03/31/2015 3.49% 8.60%
+ AUXL 10/09/2014 Endo International plc (ENDP) Special Conditions $2.6 billion $33.25 $32.17 1,402,628 06/30/2015 3.36% 5.13%
+ SIAL 09/22/2014 Merck KGaA (N/A) All Cash $17 billion $140.00 $135.91 889,869 06/30/2015 3.01% 4.60%
+ CNL 10/20/2014 Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A) All Cash $4.7 billion $55.37 $53.76 1,016,003 12/31/2015 2.99% 2.58%
+ CFN 10/05/2014 Becton, Dickinson and Company (BDX) Cash Plus Stock $12.2 billion $59.00 $57.37 3,368,274 06/30/2015 2.84% 4.34%
+ CMSB 09/25/2014 Putnam County Savings Bank (N/A) All Cash $25.4 million $13.25 $12.90 1,477 06/30/2015 2.71% 4.14%
+ TIBX 09/29/2014 Vista Equity Partners (N/A) All Cash $4.3 billion $24.00 $23.37 1,569,304 12/31/2014 2.70% 16.96%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $74.60 $72.68 414,675 06/30/2015 2.64% 4.03%
+ HCT 06/02/2014 Ventas, Inc. (VTR) All Stock $2.6 billion $11.56 $11.30 5,283,863 12/31/2014 2.34% 14.73%
+ ROC 07/15/2014 Albemarle Corporation (ALB) Cash Plus Stock $6.2 billion $78.69 $76.91 1,422,492 03/31/2015 2.31% 5.71%
+ MONT 06/11/2014 Shanghai Pudong Science and Technology Investment Co., Ltd. (N/A) All Cash $693 million $22.60 $22.10 185,188 11/06/2014 2.26% 275.26%
+ FRNK 07/15/2014 Towne Bank (TOWN) All Stock $275 million $21.22 $20.76 19,541 12/31/2014 2.24% 14.07%
+ ESBF 10/29/2014 WesBanco Inc. (WSBC) Cash Plus Stock $324.4 million $19.06 $18.66 260,541 06/30/2015 2.14% 3.26%
+ VIAS 09/22/2014 TTM Technologies Inc. (TTMI) Cash Plus Stock $927 million $16.21 $15.87 10,620 06/30/2015 2.13% 3.26%
+ KMP 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $95.64 $93.80 2,927,856 12/31/2014 1.96% 12.36%
+ GTIV 10/09/2014 Kindred Healthcare Inc. (KND) Cash Plus Stock $1.8 billion $20.09 $19.71 401,113 03/31/2015 1.93% 4.75%
+ BKYF 09/08/2014 BB&T Corporation (BBT) Cash Plus Stock $363 million $47.76 $46.91 25,640 03/31/2015 1.81% 4.45%
+ DRIV 10/23/2014 Siris Capital Group, LLC (N/A) All Cash $840 million $26.00 $25.57 778,423 03/31/2015 1.68% 4.15%
+ DRC 09/21/2014 Siemens (N/A) All Cash $7.6 billion $83.00 $81.70 1,004,136 06/30/2015 1.59% 2.43%
+ EPB 08/10/2014 Kinder Morgan, Inc. (KMI) Cash Plus Stock N/A $41.23 $40.65 1,833,408 12/31/2014 1.42% 8.91%
+ GRT 09/16/2014 Washington Prime Group Inc. (WPG) Cash Plus Stock $4.3 billion $13.91 $13.73 2,951,044 03/31/2015 1.29% 3.17%
+ FRF 08/12/2014 Tiptree Financial Inc. (TIPT) All Cash $218 million $10.00 $9.88 19,340 01/31/2015 1.21% 4.98%
+ APAGF 10/03/2014 Pluspetrol Resources Corporation (N/A) All Cash $427 million $14.50 $14.33 33,469 12/31/2014 1.19% 7.47%
+ KMR 08/10/2014 Kinder Morgan, Inc. (KMI) All Stock N/A $96.17 $95.14 755,602 12/31/2014 1.08% 6.78%
+ FFCO 04/14/2014 CB Financial Services, Inc. (CBFV) All Stock 54.5 million $22.31 $22.08 380 11/15/2014 1.05% 31.79%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (PEBO) Cash Plus Stock $109 million $30.72 $30.42 2,475 03/31/2015 0.99% 2.44%
+ PENX 10/15/2014 Ingredion Incorporated (INGR) All Cash $340 million $19.00 $18.85 43,222 12/31/2014 0.80% 5.01%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $21.79 $21.63 6,355,858 12/31/2014 0.75% 4.71%
+ APL 10/13/2014 Targa Resources Partners LP (NGLS) Cash Plus Stock $5.8 billion $36.97 $36.70 433,068 03/31/2015 0.73% 1.80%
+ IMCB 07/23/2014 Columbia Banking System Inc. (COLB) Cash Plus Stock $121.5 million $20.14 $20.00 2,689 12/31/2014 0.72% 4.54%
+ SWS 04/01/2014 Hilltop Holdings Inc. (HTH) Cash Plus Stock $260 million $7.44 $7.39 284,060 12/31/2014 0.66% 4.15%
+ PSMI 08/22/2014 Murata Electronics North America, Inc. (N/A) All Cash $471 million $12.50 $12.42 144,057 01/31/2015 0.64% 2.64%
+ OVRL 05/15/2014 Sphere 3D Corporation (ANY) All Stock $81.13 million $2.63 $2.61 28,309 12/31/2014 0.59% 3.71%
+ IRF 08/20/2014 Infineon Technologies AG (IFNNY) All Cash $2.4 billion $40.00 $39.77 1,484,709 01/31/2015 0.58% 2.37%
+ LPDX 09/25/2014 Laboratory Corp. of America Holdings (LH) All Cash $85.3 million $5.25 $5.22 28,109 12/31/2014 0.57% 3.62%
+ CNQR 09/18/2014 SAP SE (SAP) All Cash $8.3 billion $129.00 $128.32 584,438 03/31/2015 0.53% 1.31%
+ 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 $11.94 197,788 12/31/2014 0.50% 3.16%
+ CQB 10/27/2014 Cutrale-Safra group (N/A) All Cash $1.3 billion $14.50 $14.43 1,607,655 01/31/2015 0.49% 1.99%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.68 683,458 01/31/2015 0.46% 1.88%
+ KOG 07/13/2014 Whiting Petroleum Corp. (WLL) All Stock $6 billion $10.84 $10.79 3,040,936 12/31/2014 0.46% 2.89%
+ TAM 09/11/2014 Eastman Chemical Co. (EMN) All Cash $2.8 billion $26.00 $25.89 271,494 12/31/2014 0.42% 2.67%
+ FUBC 05/08/2014 Valley National Bancorp (VLY) All Stock $312 million $8.88 $8.85 413,313 03/31/2015 0.36% 0.90%
+ ATHL 09/29/2014 Encana Corporation (ECA) All Cash $7.1 billion $58.50 $58.30 1,396,694 12/31/2014 0.34% 2.16%
+ BOLT 09/03/2014 Teledyne Technologies Inc. (TDY) All Cash $171 million $22.00 $21.93 90,293 12/31/2014 0.32% 2.01%
+ MOVE 09/30/2014 News Corp (N/A) All Cash $950 million $21.00 $20.95 1,776,124 12/31/2014 0.24% 1.50%
+ LSBI 06/04/2014 Old National Bancorp. (ONB) Cash Plus Stock $66.7 million $43.64 $43.58 2,143 11/01/2014 0.15% 0.00%
+ TWTC 06/16/2014 Level 3 Communications, Inc. (LVLT) Cash Plus Stock $7.3 billion $42.84 $42.78 1,836,304 12/31/2014 0.13% 0.84%
+ BAGL 09/29/2014 JAB Holding Company (N/A) All Cash $374 million $20.25 $20.25 116,598 12/31/2014 0.00% 0.00%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $27.34 1,585,750 09/30/2015 -0.33% -0.36%
+ CNVR 09/11/2014 Alliance Data Systems Corporation (ADS) Special Conditions $2.3 billion $35.00 $35.25 799,608 12/31/2014 -0.71% -4.46%
+ FWLT 02/13/2014 AMEC PLC (AMCBF) Cash Plus Stock $3.3 billion $30.54 $31.04 310,880 12/31/2014 -1.61% -10.12%
+ DWSN 10/09/2014 TGC Industries Inc. (TGE) All Stock N/A $16.68 $16.96 95,699 03/31/2015 -1.62% -4.00%
+ GECR 06/23/2014 State Bank Financial Corporation (STBZ) Special Conditions $82 million $22.35 $23.00 700 03/31/2015 -2.83% -6.97%
+ COBK 09/10/2014 Cape Bancorp, Inc. (CBNJ) All Stock $55 million $12.58 $12.95 1,664 03/31/2015 -2.85% -7.03%
+ AMBI 09/29/2014 Daiichi Sankyo Company, Ltd. (N/A) All Cash $410 million $15.00 $15.62 351,714 12/31/2014 -3.97% -24.98%
+ DRTX 10/06/2014 Actavis plc (ACT) All Cash $675 million $23.00 $24.03 275,501 01/31/2015 -4.29% -17.58%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $78.29 682,079 01/31/2015 -4.84% -19.85%
+ WMGI 10/27/2014 Tornier N.V. (TRNX) All Stock $1.72 billion $28.81 $31.62 1,887,139 06/30/2015 -8.88% -13.55%
+ ATLS 10/13/2014 Targa Resources Corp. (TRGP) Cash Plus Stock $1.9 billion $32.39 $37.53 1,054,819 03/31/2015 -13.70% -33.78%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $5.50 648,329 01/31/2015 -17.27% -70.84%
+ AVIV 10/31/2014 Omega Healthcare Investors Inc. (OHI) All Stock $3 billion $30.36 $33.97 800,269 03/31/2015 1.84% 4.54%

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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