Merger Arbitrage Mondays – December 7, 2015

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December 7, 2015 | Merger Arbitrage | | Author Asif

Merger activity decreased last week with four new deals announced and two 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 186
Total Number of Deals Not Completed in 2015 7
Total Number of Pending Deals
Cash Deals 55
Stock Deals 20
Stock & Cash Deals 21
Special Conditions 11
Total Number of Pending Deals 107
Total Deal Size $1488.21 billion

New Deals:

  1. The acquisition of HF Financial (HFFC) by Great Western Bancorp (GWB) for $139.5 million in a cash or stock deal. Under the terms of the agreement, HF Financial stockholders will have the option to elect to receive either 0.6500 shares of Great Western common stock or $19.50 in cash for each HF Financial common share, subject to proration to ensure that in the aggregate 75% of HF Financial shares will be converted into stock.
  2. The acquisition of Mattson Technology (MTSN) by Beijing E-Town Dragon Semiconductor Industry Investment Center for $300 million or $3.80 per share in cash.
  3. The acquisition of American Residential Properties (ARPI) by American Homes 4 Rent (AMH) for $1.5 billion in an all stock deal. Under the terms of the agreement,each share of American Residential Properties common stock and each limited partnership unit in its operating partnership will be exchanged for 1.135 common shares or limited partnership units of American Homes 4 Rent.
  4. The acquisition of Pulaski Financial Corporation (PULB) by First Busey Corporation (BUSE) for $210.7 million in an all stock deal. Under the terms of the agreement, shareholders of Pulaski Financial Corporation will receive 0.79 shares of Busey common stock for each share of Pulaski common stock.

Deal Updates:

  1. On December 3, 2015, Timberline Resources Corporation (TLR) provided an update that the previously proposed transaction by Waterton Precious Metals Fund II Cayman, LP to acquire all of the issued and outstanding shares of Timberline’s common stock for cash consideration of US$0.58 per Timberline share has been withdrawn by Waterton.
  2. On December 4, 2015, it was announced that the closure of the deal involving NextEra Energy’s (NEE) proposed $4.3 billion acquisition of Hawaiian Electric (HE), which was expected to be finalized by Dec. 3, has been extended by six months to June 2016.

Closed Deals:

  1. The acquisition of State Investors Bancorp (SIBC) by First NBC Bank Holding Company (FNBC) on November 30, 2015. It took 335 days for this deal to be completed.
  2. The acquisition of Martha Stewart Living Omnimedia (MSO) by Sequential Brands Group (SQGB) on December 4, 2015. It took 165 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 $8.59 12/31/2015 92.08% 1400.44%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.95 $6.635 12/31/2015 50.03% 760.84%
PRSN 10/27/2015 Galil Medical (N/A) $1.00 $0.69 12/21/2015 44.93% 1171.33%
WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) $43.50 $31.11 06/30/2016 39.83% 70.57%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.09 12/31/2016 36.89% 34.53%
TRIV 10/26/2015 Endologix Inc. (ELGX) $9.10 $6.96 01/31/2016 30.75% 204.05%
HUM 07/03/2015 Aetna Inc. (AET) $213.21 $170.77 12/31/2016 24.85% 23.26%
CI 07/24/2015 Anthem, Inc. (ANTM) $171.79 $140.43 12/31/2016 22.33% 20.90%
ONFC 02/24/2015 Community Bank System Inc. (CBU) $24.22 $20.10 12/04/2015 20.52% -2496.81%
HE 12/03/2014 NextEra Energy, Inc. (NEE) $33.50 $28.10 06/30/2016 19.22% 34.05%

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 $8.59 278,267 12/31/2015 92.08% 1400.44%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.95 $6.635 8,463,411 12/31/2015 50.03% 760.84%
+ PRSN 10/27/2015 Galil Medical (N/A) All Cash $10.6 million $1.00 $0.69 121,663 12/21/2015 44.93% 1171.33%
+ WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) Special Conditions $37.7 billion $43.50 $31.11 16,528,619 06/30/2016 39.83% 70.57%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.09 73,605 12/31/2016 36.89% 34.53%
+ TRIV 10/26/2015 Endologix Inc. (ELGX) Special Conditions $211 million $9.10 $6.96 3,264 01/31/2016 30.75% 204.05%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $213.21 $170.77 819,039 12/31/2016 24.85% 23.26%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $171.79 $140.43 1,393,967 12/31/2016 22.33% 20.90%
+ ONFC 02/24/2015 Community Bank System Inc. (CBU) All Stock $142 million $24.22 $20.10 1,904 12/04/2015 20.52% 0.00%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $28.10 258,478 06/30/2016 19.22% 34.05%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $370.64 $316.14 2,518,295 12/31/2016 17.24% 16.13%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $61.45 $52.62 3,876,875 12/31/2015 16.78% 255.15%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $29.97 1,966,596 06/30/2016 16.45% 29.15%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Special Conditions $19 billion $86.50 $75.27 2,348,403 09/30/2016 14.92% 18.27%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.90 9,531,600 12/31/2016 13.92% 13.03%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $12.2 billion $79.88 $70.84 2,087,969 06/30/2016 12.76% 22.61%
+ NGLS 11/03/2015 Targa Resources Corp. (TRGP) All Stock $5.54 billion $18.74 $17.06 4,721,835 03/31/2016 9.86% 31.30%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.67 216,381 03/31/2016 8.99% 28.54%
+ MDP 09/08/2015 Media General, Inc. (MEG) Special Conditions $3.1 billion $51.53 $47.41 191,065 06/30/2016 8.69% 15.40%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $199.81 $184.69 1,810,377 12/31/2015 8.19% 124.52%
+ 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 $51.28 294,657 12/31/2015 7.98% 121.30%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.56 2,756,807 03/31/2016 6.74% 21.40%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $17.36 $16.28 850,026 12/31/2016 6.63% 6.21%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $11.23 $10.61 109,233 04/30/2016 5.87% 14.79%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $35.49 36,884 01/31/2016 5.66% 37.59%
+ RLD 11/09/2015 Rizvi Traverse Management, LLC (N/A) All Cash $551 million $11.00 $10.44 264,346 03/31/2016 5.36% 17.02%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $16.00 $15.24 4,316 09/30/2016 4.97% 6.08%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $62.89 759,358 12/31/2016 4.95% 4.63%
+ CCG 10/16/2015 affiliates of Harrison Street Real Estate Capital, LLC (N/A) All Cash $1.9 billion $7.03 $6.70 587,035 03/31/2016 4.93% 15.63%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $70.84 $67.57 951,104 06/30/2016 4.84% 8.57%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $11.42 $10.97 3,954,134 09/30/2016 4.09% 5.01%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $12.51 1,079,993 06/30/2016 3.92% 6.94%
+ FRM 11/02/2015 Team, Inc. (TISI) All Stock $335 million $8.08 $7.78 123,709 03/31/2016 3.91% 12.40%
+ MR 11/04/2015 Excelsior Union Limited and Solid Union Limited (N/A) All Cash $3.3 billion $28.00 $26.96 553,195 03/31/2016 3.86% 12.24%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.24 1,436,190 12/10/2015 3.85% 468.31%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $26.55 1,492,555 06/30/2016 3.77% 6.67%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $137.85 1,002,563 03/31/2016 3.74% 11.86%
+ NTI 10/26/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $27.43 $26.45 513,629 03/31/2016 3.71% 11.78%
+ NBBC 10/13/2015 Yadkin Financial Corporation (YDKN) All Stock $456 million $13.47 $12.99 59,162 06/30/2016 3.66% 6.48%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.17 157,513 04/30/2016 3.43% 8.64%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $25.98 67,506 06/30/2016 3.16% 5.59%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $58.23 364,010 12/31/2016 3.04% 2.84%
+ EZCH 09/30/2015 Mellanox Technologies, Ltd. (MLNX) All Cash $620 million $25.50 $24.78 130,286 03/31/2016 2.91% 9.22%
+ STNR 08/21/2015 affiliate of Catterton (N/A) All Cash $834 million $65.00 $63.18 108,413 03/31/2016 2.88% 9.14%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $20.01 $19.48 91,933 06/30/2016 2.71% 4.79%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.49 2,327,288 06/30/2016 2.62% 4.64%
+ ALTV 09/03/2015 Momentum Telecom, Inc. (N/A) All Cash $28.7 million $4.70 $4.59 93,280 12/31/2015 2.40% 36.45%
+ SYA 08/11/2015 Sumitomo Life Insurance Company (N/A) All Cash $3.8 billion $32.50 $31.74 496,874 05/15/2016 2.39% 5.46%
+ CAM 08/26/2015 Schlumberger Limited (SLB) Cash Plus Stock $14.8 billion $67.93 $66.36 2,702,277 03/31/2016 2.37% 7.52%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.73 $2.67 63,390 03/31/2016 2.09% 6.64%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $27.05 3,958,878 03/31/2016 2.03% 6.45%
+ UTIW 10/09/2015 DSV (N/A) All Cash $1.35 billion $7.10 $6.96 2,000,594 03/31/2016 2.01% 6.38%
+ SLH 09/13/2015 an affiliate of Vista Equity Partners (N/A) All Cash $6.5 billion $55.85 $54.76 1,135,378 03/31/2016 1.99% 6.32%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $17.28 $16.95 119,158 06/30/2016 1.93% 3.42%
+ 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 $29.19 1,307,706 04/30/2016 1.92% 4.83%
+ SWI 10/21/2015 Silver Lake Partners and Thoma Bravo, LLC (N/A) All Cash $4.5 billion $60.10 $58.97 361,378 03/31/2016 1.92% 6.08%
+ CTCT 11/02/2015 Endurance International Group Holdings, Inc. (EIGI) All Cash $1.1 billion $32.00 $31.40 424,097 12/31/2016 1.91% 1.79%
+ ATML 09/20/2015 Dialog Semiconductor Plc (DLGNF) Cash Plus Stock $4.4 billion $8.81 $8.65 2,486,339 03/31/2016 1.86% 5.90%
+ RIVR 10/26/2015 German American Bancorp Inc. (GABC) Cash Plus Stock N/A $36.27 $35.62 6,432 03/31/2016 1.83% 5.81%
+ MDAS 11/02/2015 Pamplona Capital Management (N/A) All Cash $2.7 billion $31.35 $30.79 213,539 03/31/2016 1.82% 5.77%
+ PCL 11/09/2015 Weyerhaeuser Co. (WY) All Stock $8.44 billion $51.28 $50.37 962,269 05/15/2016 1.81% 4.12%
+ DMND 10/28/2015 Snyder’s-Lance, Inc. (LNCE) Cash Plus Stock $1.91 billion $40.73 $40.07 295,601 03/31/2016 1.64% 5.19%
+ SIRO 09/15/2015 DENTSPLY International Inc. (XRAY) All Stock $5.51 billion $114.44 $112.60 441,525 03/31/2016 1.63% 5.19%
+ ALTR 06/01/2015 Intel Corporation (INTC) All Cash $16.7 billion $54.00 $53.20 1,898,522 03/31/2016 1.50% 4.77%
+ ALU 04/15/2015 Nokia Corporation (NOK) All Stock $16.6 billion $4.08 $4.02 9,150,893 06/30/2016 1.38% 2.45%
+ METR 08/04/2015 F.N.B. Corporation (FNB) All Stock $474 million $33.77 $33.32 44,722 03/31/2016 1.34% 4.27%
+ ARPI 12/03/2015 American Homes 4 Rent (AMH) All Stock $1.5 billion $18.27 $18.04 1,354,789 06/30/2016 1.29% 2.29%
+ PCP 08/10/2015 Berkshire Hathaway Inc. (BRK-A) All Cash $37.2 billion $235.00 $232.11 769,743 03/31/2016 1.25% 3.95%
+ KING 11/02/2015 Activision Blizzard, Inc. (ATVI) All Cash $5.9 billion $18.00 $17.78 652,944 03/31/2016 1.24% 3.93%
+ HNT 07/02/2015 Centene Corp. (CNC) Cash Plus Stock $6.8 billion $64.76 $64.03 1,252,204 03/31/2016 1.13% 3.59%
+ PRE 08/03/2015 EXOR S.p.A. (N/A) All Cash $6.9 billion $140.50 $138.95 317,343 03/31/2016 1.12% 3.54%
+ PMCS 11/24/2015 Microsemi Corporation (MSCC) Cash Plus Stock $2.5 billion $12.10 $11.97 3,291,736 03/31/2016 1.08% 3.42%
+ SFG 07/23/2015 Meiji Yasuda Life Insurance Company (N/A) All Cash $5 billion $115.00 $113.85 207,335 03/31/2016 1.01% 3.21%
+ TSYS 11/23/2015 Comtech Telecommunications Corp. (CMTL) All Cash $339.7 million $5.00 $4.95 997,230 03/31/2016 1.01% 3.21%
+ LBMH 11/20/2015 CR Bard Inc. (BCR) All Cash $181 million $3.35 $3.32 188,617 03/31/2016 0.90% 2.87%
+ BMR 10/08/2015 Blackstone Real Estate Partners VIII (BX) All Cash $8 billion $23.75 $23.54 2,097,354 03/31/2016 0.89% 2.83%
+ CB 07/01/2015 ACE Limited (ACE) Cash Plus Stock $28.3 billion $133.75 $132.57 2,303,044 03/31/2016 0.89% 2.82%
+ FXEN 10/13/2015 ORLEN Upstream (N/A) All Cash 119 million $1.15 $1.14 415,258 12/31/2015 0.88% 13.34%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.17 93,657 03/31/2016 0.87% 2.77%
+ ANAD 11/12/2015 GaAs Labs, LLC (N/A) All Cash $32 million $0.35 $0.347 361,720 01/31/2016 0.86% 5.74%
+ VIMC 09/15/2015 Vimicro China (N/A) All Cash N/A $13.50 $13.39 308,486 12/31/2015 0.82% 12.49%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $14.25 $14.13 16,745 03/31/2016 0.82% 2.60%
+ NVSL 06/04/2015 Liberty Bank (N/A) All Cash $78 million $11.00 $10.93 1,128 12/31/2016 0.64% 0.60%
+ PGI 09/10/2015 Siris Capital Group, LLC (N/A) All Cash $1 billion $14.00 $13.93 903,153 12/31/2015 0.50% 7.64%
+ AWAY 11/04/2015 Expedia Inc. (EXPE) Cash Plus Stock $3.9 billion $36.15 $35.98 3,877,172 03/31/2016 0.48% 1.52%
+ ISSI 06/11/2015 Uphill Investment Co (N/A) All Cash N/A $23.00 $22.91 641,691 12/31/2015 0.39% 5.97%
+ BEE 09/08/2015 Blackstone Real Estate Partners VIII L.P. (N/A) All Cash $6 billion $14.25 $14.20 3,412,289 03/31/2016 0.35% 1.12%
+ AVOL 09/03/2015 Bohai Leasing Co., Ltd. (N/A) All Cash $7.6 billion $31.00 $30.90 88,442 03/31/2016 0.32% 1.03%
+ BDBD 11/24/2015 Pinnacle Foods (N/A) All Cash $710 million $11.00 $10.97 3,853,068 03/31/2016 0.27% 0.87%
+ OCAT 11/10/2015 Astellas Pharma Inc. (N/A) All Cash $379 million $8.50 $8.48 846,653 05/09/2016 0.24% 0.56%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $11.98 198,444 03/31/2016 0.17% 0.53%
+ CYT 07/29/2015 Solvay (N/A) All Cash $6.4 billion $75.25 $75.17 814,935 12/31/2015 0.11% 1.62%
+ FSL 03/02/2015 NXP Semiconductors NV (NXPI) Cash Plus Stock $16.7 billion $38.10 $38.06 1,472,402 12/31/2015 0.10% 1.50%
+ BAMM 07/13/2015 Anderson Family (N/A) All Cash $21 million $3.25 $3.25 25,788 12/31/2015 0.00% 0.00%
+ WPP 10/13/2015 SCA (N/A) All Cash $513 million $10.25 $10.25 235,742 01/31/2016 0.00% 0.00%
+ RNDY 11/11/2015 The Kroger Co. (KR) All Cash $800 million $3.60 $3.60 1,055,691 12/31/2015 0.00% 0.00%
+ ASBI 06/29/2015 First Merchants Corporation (FRME) All Stock $68.8 million $24.38 $24.42 4,891 12/31/2015 -0.16% -2.38%
+ DYAX 11/02/2015 Shire plc (SHPG) All Cash $5.9 billion $37.30 $37.49 2,334,841 06/30/2016 -0.51% -0.90%
+ BZC 11/19/2015 TransDigm Group Incorporated (TDG) All Cash $206 million $19.61 $19.74 47,027 03/31/2016 -0.66% -2.09%
+ GPT 07/01/2015 Chambers Street Properties (CSG) All Stock $2.5 billion $22.84 $23.14 373,831 12/31/2015 -1.30% -19.78%
+ RENT 09/29/2015 comScore, Inc. (SCOR) All Stock $732 million $50.09 $51.66 85,295 01/31/2016 -3.03% -20.12%
+ PBY 10/26/2015 Bridgestone Americas, Inc. (N/A) All Cash $835 million $15.00 $15.69 1,930,897 03/31/2016 -4.40% -13.96%
+ TW 06/30/2015 Willis Group Holdings Public Limited Company (WSH) Cash Plus Stock $8.7 billion $128.60 $135.00 537,875 12/31/2015 -4.74% -72.04%
+ BRCM 05/28/2015 Avago Technologies Limited (AVGO) Special Conditions $37 billion $54.50 $57.52 9,507,646 03/31/2016 -5.25% -16.66%
+ MWE 07/13/2015 MPLX LP (MPLX) Cash Plus Stock $20 billion $38.81 $41.53 N/A 12/31/2015 -6.54% -99.43%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $4.39 $4.81 64,724 12/31/2015 -8.82% -134.14%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $5.21 $7.54 24,389 03/31/2015 -30.87% 44.89%

Disclaimer: Clients of Signal Partners, LLC  and I may have positions in any of these stocks at any time. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

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




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