Merger Arbitrage Mondays – January 25, 2016

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January 25, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with four 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 2016 11
Total Number of Pending Deals
Cash Deals 44
Stock Deals 22
Stock & Cash Deals 18
Special Conditions 12
Total Number of Pending Deals 96
Total Deal Size $850.66 billion

New Deals:

  1. The acquisition of Biotie Therapies (BITI) by Acorda Therapeutics (ACOR) for $363 million or $25.60 per share in cash.
  2. The combination of Waste Connections (WCN) and Progressive Waste Solutions (BIN). Under the terms of the definitive agreement, Waste Connections stockholders will receive 2.076843 Progressive Waste shares for each Waste Connections share they own. Subject to the approval of Progressive Waste’s shareholders, Progressive Waste then expects to implement immediately a share consolidation on the basis of 0.4815 (1 divided by the 2.076843 ratio above) of a share on a post-consolidation basis for each one share outstanding on a pre-consolidation basis.
  3. The acquisition of Anadigics (ANAD) by II-VI Incorporated (IIVI) for $61 million. Upon completion of the merger, shareholders of Anadigics will receive $0.66 per share in cash.
  4. The acquisition of Atmel Corporation (ATML) by Microchip Technology (MCHP) in a cash and stock deal for $3.40 billion. Under the terms of the agreement, stockholders of Atmel will receive $7.00 per share in cash and $1.15 per share in Microchip common stock, valued at the average closing price for a share of Microchip common stock for the ten most recent trading days ending on the last trading day prior to the closing, with the maximum number of Microchip shares to be issued in the transaction being 13.0 million. To the extent that the number of Microchip shares issuable would exceed 13.0 million, the cash consideration per Atmel share will be increased such that the value of the combined cash and stock consideration will remain at $8.15 per share.

Deal Updates:

  1. On January 19, 2016, Anadigics (ANAD) terminated its previously announced merger with GaAs Labs and agreed to be acquired by II-VI Incorporated (IIVI).
  2. On January 20, 2016, Atmel Corporation (ATML) terminated its previously announced merger with Dialog Semiconductor (DLGNF) and agreed to be acquired by Microchip Technology (MCHP).
  3. On January 20, 2016, Staples (SPLS) and Office Depot (ODP) announced that the Board of Directors of both companies intend to waive the merger agreement termination date of February 4, 2016, and extend it to May 16, 2016.
  4. On January 21, 2016, BB&T (BBT) announced that it expects to close on its purchase of National Penn Bancshares (NPBC) by April 1, 2016.

Closed Deals:

  1. The acquisition of Liberator Medical Holdings (LBMH) by CR Bard (BCR) on January 21, 2016. It took 62 days for this deal to be completed.
  2. The acquisition of Wausau Paper (WPP) by SCA on January 21. 2016. It took 39 days for this deal to be completed.
  3. The acquisition of UTi Worldwide (UTIW) by DSV on January 22, 2016. It took 105 days for this deal to be completed.
  4. The acquisition of Dyax (DYAX) by Shire (SHPG) on January 22, 2016. It took 81 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

WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) $43.50 $19.74 06/30/2016 120.36% 278.06%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.20 $5.07 05/16/2016 81.45% 263.09%
VSLR 07/20/2015 SunEdison, Inc. (SUNE) $15.25 $8.51 03/31/2016 79.20% 431.47%
TRIV 10/26/2015 Endologix Inc. (ELGX) $9.10 $6.23 01/31/2016 46.07% 2402.09%
MDP 09/08/2015 Media General, Inc. (MEG) $51.53 $37.81 06/30/2016 36.29% 83.83%
HUM 07/03/2015 Aetna Inc. (AET) $215.10 $166.22 12/31/2016 29.41% 31.38%
SNDK 10/21/2015 Western Digital Corporation (WDC) $86.50 $67.42 09/30/2016 28.30% 41.32%
CI 07/24/2015 Anthem, Inc. (ANTM) $176.25 $137.90 12/31/2016 27.81% 29.68%
HOT 11/16/2015 Marriott International, Inc. (MAR) $79.88 $62.99 06/30/2016 26.81% 61.94%
BHI 11/16/2014 Halliburton Company (HAL) $52.81 $42.04 04/30/2016 25.63% 96.42%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) Special Conditions $37.7 billion $43.50 $19.74 29,843,561 06/30/2016 120.36% 279.83%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.20 $5.07 3,631,528 05/16/2016 81.45% 265.44%
+ VSLR 07/20/2015 SunEdison, Inc. (SUNE) Special Conditions $2.2 billion $15.25 $8.51 99,898 03/31/2016 79.20% 438.01%
+ TRIV 10/26/2015 Endologix Inc. (ELGX) Special Conditions $211 million $9.10 $6.23 35,732 01/31/2016 46.07% 2802.43%
+ MDP 09/08/2015 Media General, Inc. (MEG) Special Conditions $3.1 billion $51.53 $37.81 416,768 06/30/2016 36.29% 84.36%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $215.10 $166.22 1,161,956 12/31/2016 29.41% 31.48%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Special Conditions $19 billion $86.50 $67.42 2,922,578 09/30/2016 28.30% 41.48%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $176.25 $137.90 2,339,566 12/31/2016 27.81% 29.77%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $12.2 billion $79.88 $62.99 3,180,581 06/30/2016 26.81% 62.34%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $52.81 $42.04 2,016,425 04/30/2016 25.63% 97.43%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.49 132,432 12/31/2016 21.20% 22.70%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $28.49 206,578 06/30/2016 17.59% 40.88%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $11.14 961,457 04/01/2016 16.70% 90.96%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $347.02 $297.86 2,066,273 12/31/2016 16.51% 17.67%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.80 14,559,775 12/31/2016 15.38% 16.47%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.50 184,756 03/31/2016 14.29% 79.00%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $31.35 1,925,736 06/30/2016 11.32% 26.33%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.51 302,258 03/31/2016 8.26% 45.69%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.50 $2.31 15,856 03/31/2016 8.10% 44.77%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $45.01 $41.80 6,272,670 06/30/2016 7.69% 17.87%
+ MCOX 12/22/2015 Minat Associated Co. Ltd. (N/A) All Cash N/A $4.00 $3.74 407 06/30/2016 6.95% 16.16%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $194.51 $182.06 2,215,972 06/30/2016 6.84% 15.89%
+ SLH 09/13/2015 an affiliate of Vista Equity Partners (N/A) All Cash $6.5 billion $55.85 $52.55 559,580 03/31/2016 6.28% 34.73%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.36 $14.48 610,043 12/31/2016 6.08% 6.51%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $25.28 150,240 06/30/2016 6.01% 13.98%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.24 90,438 06/30/2016 5.74% 13.35%
+ HMIN 12/07/2015 BTG Hotels Group (N/A) All Cash N/A $35.80 $33.94 139,006 06/30/2016 5.48% 12.74%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $35.67 105,520 01/31/2016 5.13% 312.10%
+ RLD 11/09/2015 Rizvi Traverse Management, LLC (N/A) All Cash $551 million $11.00 $10.47 1,016,769 03/31/2016 5.06% 27.99%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $8.24 $7.85 53,389 04/30/2016 4.94% 18.79%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $23.87 77,925 04/30/2016 4.73% 18.00%
+ 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 $52.95 327,036 03/31/2016 4.57% 25.28%
+ MR 11/04/2015 Excelsior Union Limited and Solid Union Limited (N/A) All Cash $3.3 billion $28.00 $26.81 704,048 03/31/2016 4.44% 24.55%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.25 140,525 03/31/2016 4.28% 23.65%
+ BLT 12/10/2015 American Securities LLC and P2 Capital Partners, LLC (N/A) All Cash $855 million $10.00 $9.59 381,322 06/30/2016 4.28% 9.94%
+ JAH 12/14/2015 Newell Rubbermaid Inc. (NWL) Cash Plus Stock $13 billion $52.87 $50.74 1,897,994 06/30/2016 4.19% 9.75%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $24.58 42,691 09/30/2016 4.15% 6.08%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.26 2,395,160 03/31/2016 3.77% 20.85%
+ CTCT 11/02/2015 Endurance International Group Holdings, Inc. (EIGI) All Cash $1.1 billion $32.00 $30.84 394,751 12/31/2016 3.76% 4.03%
+ NBBC 10/13/2015 Yadkin Financial Corporation (YDKN) All Stock $456 million $10.85 $10.48 69,951 06/30/2016 3.53% 8.21%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $57.97 564,995 12/31/2016 3.50% 3.75%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.49 $10.14 432,120 06/30/2016 3.50% 8.13%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $63.83 655,494 12/31/2016 3.40% 3.64%
+ CCG 10/16/2015 affiliates of Harrison Street Real Estate Capital, LLC (N/A) All Cash $1.9 billion $7.03 $6.80 1,273,900 03/31/2016 3.38% 18.71%
+ BONA 12/15/2015 Mountain Tiger International Limited (N/A) All Cash $1 billion $13.70 $13.27 94,192 06/30/2016 3.24% 7.53%
+ GMCR 12/07/2015 JAB Holding Company (N/A) All Cash $13.9 billion $92.00 $89.15 3,061,277 03/31/2016 3.20% 17.68%
+ 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 $28.83 1,215,124 04/30/2016 3.19% 12.13%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $138.60 948,415 03/31/2016 3.17% 17.56%
+ SWI 10/21/2015 Silver Lake Partners and Thoma Bravo, LLC (N/A) All Cash $4.5 billion $60.10 $58.30 1,412,328 03/31/2016 3.09% 17.07%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.00 $9.71 4,257,920 09/30/2016 2.96% 4.34%
+ TSYS 11/23/2015 Comtech Telecommunications Corp. (CMTL) All Cash $339.7 million $5.00 $4.86 663,472 03/31/2016 2.88% 15.93%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.71 $13.34 41,485 09/30/2016 2.74% 4.02%
+ SYA 08/11/2015 Sumitomo Life Insurance Company (N/A) All Cash $3.8 billion $32.50 $31.86 537,320 05/15/2016 2.01% 6.61%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $14.87 $14.58 7,114 06/30/2016 1.97% 4.59%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $66.36 $65.09 968,746 06/30/2016 1.95% 4.54%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.04 1,581,061 06/30/2016 1.89% 4.38%
+ ATML 01/19/2016 Microchip Technology Inc. (MCHP) Special Conditions $3.40 billion $8.15 $8.00 15,815,739 06/30/2016 1.88% 4.36%
+ RIVR 10/26/2015 German American Bancorp Inc. (GABC) Cash Plus Stock N/A $34.16 $33.58 4,722 03/31/2016 1.71% 9.47%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $16.90 $16.62 12,155 06/30/2016 1.69% 3.93%
+ ANAD 01/19/2016 II-VI Incorporated (IIVI) All Cash $61 million $0.66 $0.65 816,124 03/31/2016 1.54% 8.51%
+ PCP 08/10/2015 Berkshire Hathaway Inc. (BRK-A) All Cash $37.2 billion $235.00 $231.48 1,118,568 03/31/2016 1.52% 8.41%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $27.22 1,414,435 03/31/2016 1.40% 7.72%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $92.64 $91.50 636,676 05/31/2016 1.25% 3.58%
+ OCAT 11/10/2015 Astellas Pharma Inc. (N/A) All Cash $379 million $8.50 $8.41 1,215,929 05/09/2016 1.07% 3.72%
+ HNT 07/02/2015 Centene Corp. (CNC) Cash Plus Stock $6.8 billion $67.49 $66.81 1,171,813 03/31/2016 1.02% 5.65%
+ CAM 08/26/2015 Schlumberger Limited (SLB) Cash Plus Stock $14.8 billion $61.12 $60.58 2,731,351 03/31/2016 0.90% 4.96%
+ EZCH 09/30/2015 Mellanox Technologies, Ltd. (MLNX) All Cash $620 million $25.50 $25.28 339,021 03/31/2016 0.87% 4.81%
+ BRCM 05/28/2015 Avago Technologies Limited (AVGO) Special Conditions $37 billion $54.50 $54.04 5,862,787 03/31/2016 0.85% 4.71%
+ DMND 10/28/2015 Snyder’s-Lance, Inc. (LNCE) Cash Plus Stock $1.91 billion $39.68 $39.38 304,510 03/31/2016 0.76% 4.20%
+ NGLS 11/03/2015 Targa Resources Corp. (TRGP) All Stock $5.54 billion $12.68 $12.59 2,031,328 03/31/2016 0.71% 3.91%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $4.07 $4.04 97,879 12/31/2015 0.65% 0.00%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.20 261,091 03/31/2016 0.54% 3.01%
+ ARPI 12/03/2015 American Homes 4 Rent (AMH) All Stock $1.5 billion $16.99 $16.90 653,908 06/30/2016 0.54% 1.25%
+ SFG 07/23/2015 Meiji Yasuda Life Insurance Company (N/A) All Cash $5 billion $115.00 $114.42 315,220 03/31/2016 0.51% 2.80%
+ KING 11/02/2015 Activision Blizzard, Inc. (ATVI) All Cash $5.9 billion $18.00 $17.91 1,727,638 03/31/2016 0.50% 2.78%
+ PCL 11/09/2015 Weyerhaeuser Co. (WY) All Stock $8.44 billion $40.67 $40.49 935,641 05/15/2016 0.45% 1.48%
+ METR 08/04/2015 F.N.B. Corporation (FNB) All Stock $474 million $27.67 $27.57 111,497 03/31/2016 0.36% 1.99%
+ ALU 04/15/2015 Nokia Corporation (NOK) All Stock $16.6 billion $3.99 $3.98 2,185,068 06/30/2016 0.33% 0.76%
+ PRE 08/03/2015 EXOR S.p.A. (N/A) All Cash $6.9 billion $140.50 $140.07 402,755 03/31/2016 0.31% 1.70%
+ RENT 09/29/2015 comScore, Inc. (SCOR) All Stock $732 million $46.90 $46.82 112,392 01/31/2016 0.16% 10.00%
+ MDAS 11/02/2015 Pamplona Capital Management (N/A) All Cash $2.7 billion $31.35 $31.31 2,637,026 03/31/2016 0.13% 0.71%
+ PBY 12/30/2015 Icahn Enterprises, L.P. (IEP) All Cash $1.031 billion $18.50 $18.48 642,990 03/31/2016 0.11% 0.60%
+ SIRO 09/15/2015 DENTSPLY International Inc. (XRAY) All Stock $5.51 billion $104.35 $104.32 383,310 03/31/2016 0.03% 0.17%
+ FRM 11/02/2015 Team, Inc. (TISI) All Stock $335 million $5.26 $5.26 75,472 03/31/2016 0.02% 0.11%
+ BMR 10/08/2015 Blackstone Real Estate Partners VIII (BX) All Cash $8 billion $23.75 $23.80 3,877,566 03/31/2016 -0.21% -1.16%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $41.43 $41.56 100,610 06/30/2016 -0.30% -0.70%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.04 $12.10 62,852 03/31/2016 -0.50% -2.74%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $12.07 73,727 03/31/2016 -0.58% -3.21%
+ IRC 12/15/2015 real estate funds managed by DRA Advisors LLC (N/A) All Cash $2.3 billion $10.60 $10.70 642,508 06/30/2016 -0.93% -2.17%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.01 $14.25 8,310 09/30/2016 -1.67% -2.45%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $20.38 1,667,614 02/03/2016 -1.86% -75.62%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $24.85 $25.32 526,320 06/30/2016 -1.86% -4.34%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $57.78 $59.07 2,713,550 06/30/2016 -2.19% -5.09%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $18.53 $19.38 15,252 09/30/2016 -4.40% -6.45%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $15.57 $16.38 5,641 06/30/2016 -4.92% -11.44%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.43 $6.38 119,560 03/31/2015 -30.58% 37.21%

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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