Merger Arbitrage Mondays – November 30, 2015

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November 29, 2015 | Merger Arbitrage | | Author Asif

Merger activity increased last week with six new deals announced and four 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 2015 184
Total Number of Deals Not Completed in 2015 6
Total Number of Pending Deals
Cash Deals 56
Stock Deals 17
Stock & Cash Deals 21
Special Conditions 12
Total Number of Pending Deals 106
Total Deal Size $1486.06 billion

New Deals:

  1. The acquisition of Allergan (AGN) by Pfizer (PFE) for $160 billion. Immediately prior to the merger, Allergan will effect an 11.3-for-one share split so that each Allergan shareholder will receive 11.3 shares of the combined company for each of their Allergan shares, and the Pfizer stockholders will receive one share of the combined company for each of their Pfizer shares.
  2. The acquisition of CommunityOne Bancorp (COB) by Capital Bank Financial (CBF) for $350 million in a cash or stock deal. Under the terms of the agreement, CommunityOne shareholders shall have the right to receive, at the election of each holder and subject to proration, $14.25 per share in cash or 0.43 of a share of Capital Bank Class A common stock, with the total consideration to consist of 85% stock and 15% cash.
  3. The acquisition of TeleCommunication Systems (TSYS) by Comtech Telecommunications (CMTL) for $339.7 million or $5.00 per share in cash.
  4. The acquisition of PMC-Sierra (PMCS) by Microsemi Corporation (MSCC) for $2.5 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of PMC-Sierra will receive $9.22 in cash and 0.0771 of a share of Microsemi common stock for each share of PMC common stock.
  5. The acquisition of Boulder Brands (BDBD) by Pinnacle Foods for $710 million or $11.00 per share in cash.
  6. The acquisition of Cheviot Financial (CHEV) by MainSource Financial Group (MSFG) for $107.4 million in  cash or stock deal. Under the terms of the agreement, shareholders of Cheviot Financial may elect to receive either 0.6916 shares of MainSource common stock or $15.00 in cash for each share of Cheviot common stock owned, subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of 50% of Cheviot shares being exchanged for common stock and 50% for cash.

Deal Updates:

  1. On November 24, 2015, Skyworks Solutions (SWKS) announced that it decided not to modify its amended and restated merger agreement with PMC-Sierra (PMCS). PMC terminated the amended and restated merger agreement and, as a result, Skyworks is entitled to an $88.5 million termination fee from PMC.

Closed Deals:

  1. The acquisition of Daegis (DAEG) by Open Text Corporation (OTEX) on November 24, 2015. It took 47 days for this deal to be completed.
  2. The acquisition of IPC Healthcare (IPCM) by Team Health Holdings (TMH) on November 23, 2015. It took 111 days for this deal to be completed.
  3. The acquisition of Pericom Semiconductor (PSEM) by Diodes Incorporated (DIOD) on November 25, 2015. It took 83 days for this deal to be completed.
  4. The acquisition of Planar Systems (PLNR) by Leyard Optoelectronic on November 27, 2015. It took 107 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

VSLR 07/20/2015 SunEdison, Inc. (SUNE) $16.50 $8.06 12/31/2015 104.71% 1232.93%
TLR 09/15/2015 Waterton Precious Metals Fund II Cayman, LP (N/A) $0.58 $0.390 12/31/2015 48.72% 573.61%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.94 $6.75 12/31/2015 47.31% 557.04%
TRIV 10/26/2015 Endologix Inc. (ELGX) $9.10 $6.61 01/31/2016 37.67% 221.77%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.18 12/31/2016 33.02% 30.36%
CI 07/24/2015 Anthem, Inc. (ANTM) $171.00 $135.30 12/31/2016 26.39% 24.26%
HUM 07/03/2015 Aetna Inc. (AET) $212.15 $168.90 12/31/2016 25.61% 23.54%
PRSN 10/27/2015 Galil Medical (N/A) $1.00 $0.830 03/31/2016 20.48% 61.28%
WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) $43.50 $36.14 06/30/2016 20.37% 34.90%
BHI 11/16/2014 Halliburton Company (HAL) $62.83 $52.78 12/31/2015 19.03% 224.10%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ VSLR 07/20/2015 SunEdison, Inc. (SUNE) Special Conditions $2.2 billion $16.50 $8.06 45,662 12/31/2015 104.71% 1232.93%
+ TLR 09/15/2015 Waterton Precious Metals Fund II Cayman, LP (N/A) All Cash N/A $0.58 $0.390 3,565 12/31/2015 48.72% 573.61%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.94 $6.75 2,053,389 12/31/2015 47.31% 557.04%
+ TRIV 10/26/2015 Endologix Inc. (ELGX) Special Conditions $211 million $9.10 $6.61 29,069 01/31/2016 37.67% 221.77%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.18 13,466 12/31/2016 33.02% 30.36%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $171.00 $135.30 457,919 12/31/2016 26.39% 24.26%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $212.15 $168.90 627,300 12/31/2016 25.61% 23.54%
+ PRSN 10/27/2015 Galil Medical (N/A) All Cash $10.6 million $1.00 $0.830 282,886 03/31/2016 20.48% 61.28%
+ WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) Special Conditions $37.7 billion $43.50 $36.14 2,312,250 06/30/2016 20.37% 34.90%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $62.83 $52.78 981,196 12/31/2015 19.03% 224.10%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $28.40 111,610 12/31/2015 17.96% 211.44%
+ ONFC 02/24/2015 Community Bank System Inc. (CBU) All Stock $142 million $24.16 $20.61 1,220 12/04/2015 17.24% 1573.02%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Special Conditions $19 billion $86.50 $74.58 452,376 09/30/2016 15.98% 19.13%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $370.53 $319.76 1,864,863 12/31/2016 15.88% 14.60%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $30.28 1,669,037 06/30/2016 15.26% 26.15%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.86 3,655,125 12/31/2016 14.50% 13.33%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.91 $2.63 27,931 03/31/2016 10.77% 32.21%
+ 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 $50.02 132,349 12/31/2015 10.70% 125.93%
+ DYAX 11/02/2015 Shire plc (SHPG) All Cash $5.9 billion $37.30 $33.80 1,064,645 06/30/2016 10.36% 17.74%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $12.2 billion $79.88 $72.51 730,539 06/30/2016 10.16% 17.42%
+ MDP 09/08/2015 Media General, Inc. (MEG) Special Conditions $3.1 billion $51.53 $47.01 55,718 06/30/2016 9.61% 16.48%
+ MWE 07/13/2015 MPLX LP (MPLX) Cash Plus Stock $20 billion $49.95 $45.82 567,272 12/31/2015 9.02% 106.24%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $201.28 $185.26 282,981 12/31/2015 8.65% 101.80%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.69 127,080 03/31/2016 8.40% 25.13%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $11.47 $10.63 30,587 04/30/2016 7.92% 19.03%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $25.27 1,564,290 12/10/2015 7.84% 285.99%
+ NGLS 11/03/2015 Targa Resources Corp. (TRGP) All Stock $5.54 billion $24.76 $23.16 338,750 03/31/2016 6.92% 20.70%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $70.82 $66.54 508,237 06/30/2016 6.42% 11.01%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $35.28 8,642 01/31/2016 6.29% 37.04%
+ CCG 10/16/2015 affiliates of Harrison Street Real Estate Capital, LLC (N/A) All Cash $1.9 billion $7.03 $6.62 119,744 03/31/2016 6.19% 18.53%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $15.91 $15.01 43,194 09/30/2016 6.02% 7.21%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $62.60 321,772 12/31/2016 5.43% 4.99%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $26.30 263,657 06/30/2016 4.75% 8.14%
+ RLD 11/09/2015 Rizvi Traverse Management, LLC (N/A) All Cash $551 million $11.00 $10.54 248,366 03/31/2016 4.36% 13.06%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $16.66 $15.97 211,004 12/31/2016 4.32% 3.97%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $11.24 $10.77 927,114 09/30/2016 4.32% 5.17%
+ SLH 09/13/2015 an affiliate of Vista Equity Partners (N/A) All Cash $6.5 billion $55.85 $53.55 387,860 03/31/2016 4.30% 12.85%
+ MR 11/04/2015 Excelsior Union Limited and Solid Union Limited (N/A) All Cash $3.3 billion $28.00 $26.85 193,758 03/31/2016 4.28% 12.81%
+ MDAS 11/02/2015 Pamplona Capital Management (N/A) All Cash $2.7 billion $31.35 $30.10 128,997 03/31/2016 4.15% 12.42%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $25.74 28,965 06/30/2016 4.12% 7.06%
+ STNR 08/21/2015 affiliate of Catterton (N/A) All Cash $834 million $65.00 $62.44 7,700 03/31/2016 4.10% 12.27%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $12.50 185,077 06/30/2016 4.00% 6.85%
+ PGI 09/10/2015 Siris Capital Group, LLC (N/A) All Cash $1 billion $14.00 $13.47 403,608 12/31/2015 3.93% 46.33%
+ RIVR 10/26/2015 German American Bancorp Inc. (GABC) Cash Plus Stock N/A $36.17 $34.90 5,431 03/31/2016 3.65% 10.91%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $138.38 591,199 03/31/2016 3.34% 9.99%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $26.73 1,980,868 03/31/2016 3.25% 9.74%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $58.13 175,752 12/31/2016 3.22% 2.96%
+ SYA 08/11/2015 Sumitomo Life Insurance Company (N/A) All Cash $3.8 billion $32.50 $31.58 260,965 05/15/2016 2.91% 6.37%
+ NTI 10/26/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $27.86 $27.08 245,300 03/31/2016 2.88% 8.62%
+ SWI 10/21/2015 Silver Lake Partners and Thoma Bravo, LLC (N/A) All Cash $4.5 billion $60.10 $58.49 288,876 03/31/2016 2.75% 8.24%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.35 158,794 04/30/2016 2.67% 6.41%
+ EZCH 09/30/2015 Mellanox Technologies, Ltd. (MLNX) All Cash $620 million $25.50 $24.85 74,343 03/31/2016 2.62% 7.83%
+ CAM 08/26/2015 Schlumberger Limited (SLB) Cash Plus Stock $14.8 billion $69.81 $68.04 766,376 03/31/2016 2.60% 7.78%
+ NBBC 10/13/2015 Yadkin Financial Corporation (YDKN) All Stock $456 million $12.97 $12.65 51,852 06/30/2016 2.49% 4.27%
+ ATML 09/20/2015 Dialog Semiconductor Plc (DLGNF) Cash Plus Stock $4.4 billion $8.81 $8.60 2,352,093 03/31/2016 2.45% 7.33%
+ CTCT 11/02/2015 Endurance International Group Holdings, Inc. (EIGI) All Cash $1.1 billion $32.00 $31.24 149,505 12/31/2016 2.43% 2.24%
+ ALTV 09/03/2015 Momentum Telecom, Inc. (N/A) All Cash $28.7 million $4.70 $4.59 27,689 12/31/2015 2.40% 28.22%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.54 1,231,679 06/30/2016 2.35% 4.03%
+ ANAD 11/12/2015 GaAs Labs, LLC (N/A) All Cash $32 million $0.35 $0.342 182,147 01/31/2016 2.34% 13.77%
+ ALTR 06/01/2015 Intel Corporation (INTC) All Cash $16.7 billion $54.00 $52.82 746,862 03/31/2016 2.23% 6.68%
+ VIMC 09/15/2015 Vimicro China (N/A) All Cash N/A $13.50 $13.25 105,649 12/31/2015 1.89% 22.22%
+ KING 11/02/2015 Activision Blizzard, Inc. (ATVI) All Cash $5.9 billion $18.00 $17.67 2,912,045 03/31/2016 1.87% 5.59%
+ OVTI 04/30/2015 Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. (N/A) All Cash $1.9 billion $29.75 $29.21 364,957 04/30/2016 1.85% 4.44%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $14.37 $14.12 24,928 03/31/2016 1.74% 5.22%
+ DMND 10/28/2015 Snyder’s-Lance, Inc. (LNCE) Cash Plus Stock $1.91 billion $42.28 $41.56 113,729 03/31/2016 1.74% 5.21%
+ UTIW 10/09/2015 DSV (N/A) All Cash $1.35 billion $7.10 $6.985 253,117 03/31/2016 1.65% 4.93%
+ SIRO 09/15/2015 DENTSPLY International Inc. (XRAY) All Stock $5.51 billion $110.87 $109.12 92,248 03/31/2016 1.60% 4.79%
+ METR 08/04/2015 F.N.B. Corporation (FNB) All Stock $474 million $34.36 $33.85 27,655 03/31/2016 1.51% 4.52%
+ PCP 08/10/2015 Berkshire Hathaway Inc. (BRK-A) All Cash $37.2 billion $235.00 $231.58 341,037 03/31/2016 1.48% 4.42%
+ AVOL 09/03/2015 Bohai Leasing Co., Ltd. (N/A) All Cash $7.6 billion $31.00 $30.57 13,818 03/31/2016 1.41% 4.21%
+ HNT 07/02/2015 Centene Corp. (CNC) Cash Plus Stock $6.8 billion $64.77 $63.88 415,614 03/31/2016 1.40% 4.19%
+ PCL 11/09/2015 Weyerhaeuser Co. (WY) All Stock $8.44 billion $51.79 $51.08 875,196 05/15/2016 1.39% 3.05%
+ BMR 10/08/2015 Blackstone Real Estate Partners VIII (BX) All Cash $8 billion $23.75 $23.45 1,037,810 03/31/2016 1.28% 3.83%
+ BAMM 07/13/2015 Anderson Family (N/A) All Cash $21 million $3.25 $3.21 1,185 12/31/2015 1.25% 14.67%
+ ASBI 06/29/2015 First Merchants Corporation (FRME) All Stock $68.8 million $24.85 $24.55 4,261 12/31/2015 1.23% 14.47%
+ TSYS 11/23/2015 Comtech Telecommunications Corp. (CMTL) All Cash $339.7 million $5.00 $4.94 319,768 03/31/2016 1.21% 3.63%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.14 40,552 03/31/2016 1.20% 3.60%
+ CB 07/01/2015 ACE Limited (ACE) Cash Plus Stock $28.3 billion $132.18 $130.62 418,747 03/31/2016 1.20% 3.58%
+ ALU 04/15/2015 Nokia Corporation (NOK) All Stock $16.6 billion $3.95 $3.91 770,363 06/30/2016 1.14% 1.95%
+ PMCS 11/24/2015 Microsemi Corporation (MSCC) Cash Plus Stock $2.5 billion $12.01 $11.88 3,239,970 03/31/2016 1.06% 3.16%
+ SFG 07/23/2015 Meiji Yasuda Life Insurance Company (N/A) All Cash $5 billion $115.00 $113.86 83,287 03/31/2016 1.00% 3.00%
+ FRM 11/02/2015 Team, Inc. (TISI) All Stock $335 million $8.32 $8.24 75,680 03/31/2016 0.98% 2.92%
+ PRE 08/03/2015 EXOR S.p.A. (N/A) All Cash $6.9 billion $140.50 $139.15 288,899 03/31/2016 0.97% 2.90%
+ FXEN 10/13/2015 ORLEN Upstream (N/A) All Cash 119 million $1.15 $1.14 63,751 12/31/2015 0.88% 10.33%
+ MSO 06/22/2015 Sequential Brands Group, Inc. (SQBG) Special Conditions $353 million $6.15 $6.11 87,858 12/31/2015 0.65% 7.71%
+ NVSL 06/04/2015 Liberty Bank (N/A) All Cash $78 million $11.00 $10.93 134 12/31/2016 0.64% 0.59%
+ BEE 09/08/2015 Blackstone Real Estate Partners VIII L.P. (N/A) All Cash $6 billion $14.25 $14.16 1,959,023 03/31/2016 0.64% 1.90%
+ LBMH 11/20/2015 CR Bard Inc. (BCR) All Cash $181 million $3.35 $3.33 212,523 03/31/2016 0.60% 1.80%
+ CYT 07/29/2015 Solvay (N/A) All Cash $6.4 billion $75.25 $74.84 363,398 12/31/2015 0.55% 6.45%
+ AWAY 11/04/2015 Expedia Inc. (EXPE) Cash Plus Stock $3.9 billion $35.68 $35.50 616,171 03/31/2016 0.51% 1.51%
+ BDBD 11/24/2015 Pinnacle Foods (N/A) All Cash $710 million $11.00 $10.95 3,027,753 03/31/2016 0.46% 1.37%
+ ISSI 06/11/2015 Uphill Investment Co (N/A) All Cash N/A $23.00 $22.90 548,087 12/31/2015 0.44% 5.14%
+ GPT 07/01/2015 Chambers Street Properties (CSG) All Stock $2.5 billion $24.11 $24.04 242,229 12/31/2015 0.31% 3.67%
+ WPP 10/13/2015 SCA (N/A) All Cash $513 million $10.25 $10.24 170,138 01/31/2016 0.10% 0.57%
+ FSL 03/02/2015 NXP Semiconductors NV (NXPI) Cash Plus Stock $16.7 billion $37.36 $37.35 957,950 12/31/2015 0.03% 0.36%
+ RNDY 11/11/2015 The Kroger Co. (KR) All Cash $800 million $3.60 $3.60 325,441 12/31/2015 0.00% 0.00%
+ BRCM 05/28/2015 Avago Technologies Limited (AVGO) Special Conditions $37 billion $54.50 $54.62 1,424,868 03/31/2016 -0.22% -0.66%
+ BZC 11/19/2015 TransDigm Group Incorporated (TDG) All Cash $206 million $19.61 $19.72 5,102 03/31/2016 -0.56% -1.67%
+ SIBC 12/30/2014 First NBC Bank Holding Company (FNBC) All Cash $49 million $21.25 $21.40 89 12/31/2015 -0.70% -8.25%
+ OCAT 11/10/2015 Astellas Pharma Inc. (N/A) All Cash $379 million $8.50 $8.56 263,514 05/09/2016 -0.70% -1.59%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $12.12 20,910 03/31/2016 -0.99% -2.96%
+ RENT 09/29/2015 comScore, Inc. (SCOR) All Stock $732 million $48.59 $49.28 36,527 01/31/2016 -1.41% -8.27%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $5.54 $5.71 14,398 12/31/2015 -3.06% -36.00%
+ PBY 10/26/2015 Bridgestone Americas, Inc. (N/A) All Cash $835 million $15.00 $15.54 601,869 03/31/2016 -3.47% -10.40%
+ TW 06/30/2015 Willis Group Holdings Public Limited Company (WSH) Cash Plus Stock $8.7 billion $127.07 $134.12 118,973 12/31/2015 -5.26% -61.91%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $5.37 $7.90 12,700 03/31/2015 -32.00% 47.87%

Voluntary Disclosure: I hold long positions in CCG and DYAX.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria




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