Merger Arbitrage Mondays – February 1, 2016

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February 1, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with five new deals announced and three 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 14
Total Number of Pending Deals
Cash Deals 42
Stock Deals 23
Stock & Cash Deals 20
Special Conditions 12
Total Number of Pending Deals 97
Total Deal Size $860.96 billion

New Deals:

  1. The merger of Johnson Controls (JCI) and Tyco International (TYC). Immediately prior to the merger, Tyco will effect a reverse stock split so that Tyco shareholders will receive a fixed exchange ratio of 0.9550 shares for each of their existing Tyco shares. Johnson Controls shareholders may elect to receive either one share of the combined company for each of their Johnson Controls shares or cash equal to $34.88 per share. Elections by Johnson Controls shareholders are subject to proration such that an aggregate of approximately $3.9 billion cash is paid in the merger.
  2. The acquisition of Affymetrix (AFFX) by Thermo Fisher Scientific (TMO) for $1.3 billion or $14.00 per share in cash.
  3. The acquisition of FirstMerit Corporation (FMER) by Huntington Bancshares Incorporated (HBAN) for $3.4 billion in a cash plus stock deal. Under the terms of the agreement, shareholders of FirstMerit Corporation will receive 1.72 shares of Huntington common stock, and $5.00 in cash, for each share of FirstMerit Corporation common stock.
  4. The acquisition of Media General (MEG) by Nexstar Broadcasting Group (NXST) for $4.6 billion in a cash plus stock deal. Under the terms of agreement, shareholders of Media General will receive $10.55 per share in cash and 0.1249 of a share of Nexstar Class A common stock for each Media General share. The agreement includes potential additional consideration in the form of a contingent value right (“CVR”) entitling Media General shareholders to net cash proceeds as received from the sale of Media General’s spectrum in the Federal Communication Commission’s upcoming Incentive Auction.
  5. The acquisition of Avenue Financial Holdings (AVNU) by Pinnacle Financial Partners (PNFP) for $201.4 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Avenue Financial Holdings will receive 0.36 shares of Pinnacle’s common stock and $2.00 in cash for every Avenue share.

Deal Updates:

  1. On January 27, 2016, Media General (MEG) terminated its previously announced merger with Meredith Corporation (MDP) and agreed to be acquired by Nexstar Broadcasting Group (NXST).

Closed Deals:

  1. The acquisition of MedAssets (MDAS) by Pamplona Capital Management on January 27, 2016. It took 86 days for this deal to be completed.
  2. The acquisition of OmniVision Technologies (OVTI) by Hua Capital Management Co., Ltd., CITIC Capital Holdings Limited, and GoldStone Investment Co., Ltd. on January 28, 2016. It took 273 days for this deal to be completed.
  3. The acquisition of BioMed Realty Trust (BMR) by Blackstone Real Estate Partners VIII (BX) on January 28, 2016. It took 112 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 $19.30 06/30/2016 125.39% 305.11%
VSLR 07/20/2015 SunEdison, Inc. (SUNE) $15.25 $8.30 03/31/2016 83.73% 518.02%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.20 $5.15 05/16/2016 78.67% 273.48%
TRIV 10/26/2015 Endologix Inc. (ELGX) $9.10 $5.61 01/31/2016 62.21% -22706.77%
HUM 07/03/2015 Aetna Inc. (AET) $210.29 $162.79 12/31/2016 29.18% 31.89%
HOT 11/16/2015 Marriott International, Inc. (MAR) $79.88 $62.24 06/30/2016 28.34% 68.97%
CI 07/24/2015 Anthem, Inc. (ANTM) $170.63 $133.60 12/31/2016 27.72% 30.29%
BHI 11/16/2014 Halliburton Company (HAL) $54.60 $43.51 04/30/2016 25.50% 104.58%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.40 12/31/2016 24.41% 26.68%
SNDK 10/21/2015 Western Digital Corporation (WDC) $86.50 $70.70 09/30/2016 22.35% 33.71%

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 $19.30 14,932,706 06/30/2016 125.39% 305.11%
+ VSLR 07/20/2015 SunEdison, Inc. (SUNE) Special Conditions $2.2 billion $15.25 $8.30 248,190 03/31/2016 83.73% 518.02%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.20 $5.15 13,209,566 05/16/2016 78.67% 273.48%
+ TRIV 10/26/2015 Endologix Inc. (ELGX) Special Conditions $211 million $9.10 $5.61 19,284 01/31/2016 62.21% 0.00%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $210.29 $162.79 1,200,575 12/31/2016 29.18% 31.89%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $12.2 billion $79.88 $62.24 2,069,708 06/30/2016 28.34% 68.97%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $170.63 $133.60 1,652,485 12/31/2016 27.72% 30.29%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $54.60 $43.51 4,132,817 04/30/2016 25.50% 104.58%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.40 86,970 12/31/2016 24.41% 26.68%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Special Conditions $19 billion $86.50 $70.70 4,669,451 09/30/2016 22.35% 33.71%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $344.54 $283.76 3,638,180 12/31/2016 21.42% 23.41%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.79 10,505,950 12/31/2016 15.53% 16.97%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $11.40 1,176,136 04/01/2016 14.04% 85.38%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $29.92 587,539 06/30/2016 11.97% 29.12%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $31.91 1,961,777 06/30/2016 9.37% 22.80%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.49 239,449 03/31/2016 8.88% 54.95%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $8.23 $7.57 43,561 04/30/2016 8.69% 35.63%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.70 522,156 03/31/2016 8.11% 50.16%
+ BLT 12/10/2015 American Securities LLC and P2 Capital Partners, LLC (N/A) All Cash $855 million $10.00 $9.30 1,504,428 06/30/2016 7.53% 18.32%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $42.94 $40.01 8,195,824 06/30/2016 7.33% 17.83%
+ MCOX 12/22/2015 Minat Associated Co. Ltd. (N/A) All Cash N/A $4.00 $3.73 10,237 06/30/2016 7.24% 17.61%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $25.05 231,898 06/30/2016 6.99% 17.00%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.15 104,458 06/30/2016 6.46% 15.73%
+ RLD 11/09/2015 Rizvi Traverse Management, LLC (N/A) All Cash $551 million $11.00 $10.39 2,277,856 03/31/2016 5.87% 36.32%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $192.69 $182.01 2,107,572 06/30/2016 5.87% 14.28%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.98 $15.13 707,467 12/31/2016 5.62% 6.14%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $16.24 7,239,751 12/15/2016 5.54% 6.36%
+ HMIN 12/07/2015 BTG Hotels Group (N/A) All Cash N/A $35.80 $33.95 203,020 06/30/2016 5.45% 13.26%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $23.90 153,679 04/30/2016 4.60% 18.88%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $4.09 $3.91 42,024 02/20/2016 4.54% 87.30%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.24 86,934 03/31/2016 4.42% 27.34%
+ 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 $53.14 591,774 03/31/2016 4.20% 25.96%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $16.84 $16.19 43,052 06/30/2016 4.01% 9.75%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $63.56 1,361,679 12/31/2016 3.84% 4.20%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $35.69 $34.39 5,212,681 09/30/2016 3.78% 5.70%
+ MR 11/04/2015 Excelsior Union Limited and Solid Union Limited (N/A) All Cash $3.3 billion $28.00 $27.00 727,552 03/31/2016 3.70% 22.91%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.95 $19.24 1,463,047 09/15/2016 3.67% 5.90%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $24.72 3,670 09/30/2016 3.56% 5.37%
+ GMCR 12/07/2015 JAB Holding Company (N/A) All Cash $13.9 billion $92.00 $89.25 3,304,878 03/31/2016 3.08% 19.06%
+ SLH 09/13/2015 an affiliate of Vista Equity Partners (N/A) All Cash $6.5 billion $55.85 $54.26 2,579,876 03/31/2016 2.93% 18.13%
+ NBBC 10/13/2015 Yadkin Financial Corporation (YDKN) All Stock $456 million $11.62 $11.32 117,723 06/30/2016 2.65% 6.45%
+ JAH 12/14/2015 Newell Rubbermaid Inc. (NWL) Cash Plus Stock $13 billion $54.43 $53.05 4,864,502 06/30/2016 2.60% 6.32%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.16 $2.11 25,063 03/31/2016 2.56% 15.85%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $43.74 $42.68 292,806 06/30/2016 2.49% 6.06%
+ BONA 12/15/2015 Mountain Tiger International Limited (N/A) All Cash $1 billion $13.70 $13.38 462,176 06/30/2016 2.39% 5.82%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $14.56 $14.22 70,859 06/30/2016 2.39% 5.81%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.55 $13.25 55,429 09/30/2016 2.24% 3.38%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $140.00 1,116,245 03/31/2016 2.14% 13.26%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.68 1,651,250 03/31/2016 2.14% 13.22%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.75 75,028 01/31/2016 2.04% 0.00%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $15.34 $15.04 11,218 09/30/2016 1.99% 3.01%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $19.76 $19.38 4,849,959 09/30/2016 1.95% 2.94%
+ CCG 10/16/2015 affiliates of Harrison Street Real Estate Capital, LLC (N/A) All Cash $1.9 billion $7.03 $6.92 2,505,075 03/31/2016 1.59% 9.83%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.12 3,921,785 06/30/2016 1.59% 3.86%
+ NGLS 11/03/2015 Targa Resources Corp. (TRGP) All Stock $5.54 billion $13.93 $13.74 2,782,662 03/31/2016 1.39% 8.62%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $27.23 2,873,276 03/31/2016 1.36% 8.41%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $67.90 $66.99 2,357,399 06/30/2016 1.35% 3.29%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.24 1,141,583 12/31/2016 1.28% 1.40%
+ CTCT 11/02/2015 Endurance International Group Holdings, Inc. (EIGI) All Cash $1.1 billion $32.00 $31.61 732,203 12/31/2016 1.23% 1.35%
+ PCL 11/09/2015 Weyerhaeuser Co. (WY) All Stock $8.44 billion $40.98 $40.51 2,214,340 05/15/2016 1.15% 4.04%
+ ATML 01/19/2016 Microchip Technology Inc. (MCHP) Special Conditions $3.40 billion $8.15 $8.06 11,172,072 06/30/2016 1.12% 2.72%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $9.89 $9.79 3,151,132 09/30/2016 1.01% 1.52%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.69 $10.59 569,450 06/30/2016 0.96% 2.34%
+ HNT 07/02/2015 Centene Corp. (CNC) Cash Plus Stock $6.8 billion $66.85 $66.22 1,210,283 03/31/2016 0.95% 5.90%
+ TSYS 11/23/2015 Comtech Telecommunications Corp. (CMTL) All Cash $339.7 million $5.00 $4.96 727,191 03/31/2016 0.81% 4.99%
+ CAM 08/26/2015 Schlumberger Limited (SLB) Cash Plus Stock $14.8 billion $66.19 $65.66 3,496,170 03/31/2016 0.80% 4.95%
+ DMND 10/28/2015 Snyder’s-Lance, Inc. (LNCE) Cash Plus Stock $1.91 billion $36.97 $36.70 441,892 03/31/2016 0.73% 4.50%
+ OCAT 11/10/2015 Astellas Pharma Inc. (N/A) All Cash $379 million $8.50 $8.44 732,577 05/09/2016 0.71% 2.65%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $92.70 $92.08 386,862 05/31/2016 0.67% 2.05%
+ RIVR 10/26/2015 German American Bancorp Inc. (GABC) Cash Plus Stock N/A $34.40 $34.18 2,314 03/31/2016 0.65% 4.01%
+ EZCH 09/30/2015 Mellanox Technologies, Ltd. (MLNX) All Cash $620 million $25.50 $25.34 343,191 03/31/2016 0.63% 3.91%
+ SIRO 09/15/2015 DENTSPLY International Inc. (XRAY) All Stock $5.51 billion $106.84 $106.29 999,316 03/31/2016 0.52% 3.19%
+ ALU 04/15/2015 Nokia Corporation (NOK) All Stock $16.6 billion $3.96 $3.94 3,028,973 06/30/2016 0.51% 1.24%
+ ARPI 12/03/2015 American Homes 4 Rent (AMH) All Stock $1.5 billion $17.01 $16.94 355,477 06/30/2016 0.43% 1.06%
+ KING 11/02/2015 Activision Blizzard, Inc. (ATVI) All Cash $5.9 billion $18.00 $17.93 662,466 03/31/2016 0.39% 2.42%
+ SFG 07/23/2015 Meiji Yasuda Life Insurance Company (N/A) All Cash $5 billion $115.00 $114.66 325,267 03/31/2016 0.30% 1.83%
+ METR 08/04/2015 F.N.B. Corporation (FNB) All Stock $474 million $28.59 $28.52 45,080 03/31/2016 0.26% 1.62%
+ SWI 10/21/2015 Silver Lake Partners and Thoma Bravo, LLC (N/A) All Cash $4.5 billion $60.10 $59.95 2,413,517 03/31/2016 0.25% 1.55%
+ PRE 08/03/2015 EXOR S.p.A. (N/A) All Cash $6.9 billion $140.50 $140.40 533,612 03/31/2016 0.07% 0.44%
+ PBY 12/30/2015 Icahn Enterprises, L.P. (IEP) All Cash $1.031 billion $18.50 $18.49 1,084,774 03/31/2016 0.05% 0.33%
+ PCP 08/10/2015 Berkshire Hathaway Inc. (BRK-A) All Cash $37.2 billion $235.00 $234.93 5,642,603 03/31/2016 0.03% 0.18%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.25 388,550 03/31/2016 0.00% 0.00%
+ SYA 08/11/2015 Sumitomo Life Insurance Company (N/A) All Cash $3.8 billion $32.00 $32.02 2,411,742 02/02/2016 -0.06% -22.80%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $12.02 74,005 03/31/2016 -0.17% -1.03%
+ AFFX 01/26/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $1.3 billion $14.00 $14.03 3,318,661 06/30/2016 -0.21% -0.52%
+ BRCM 05/28/2015 Avago Technologies Limited (AVGO) Special Conditions $37 billion $54.50 $54.67 23,579,330 03/31/2016 -0.31% -1.92%
+ RENT 09/29/2015 comScore, Inc. (SCOR) All Stock $732 million $44.31 $44.47 478,353 01/31/2016 -0.36% 131.73%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.09 $13.16 18,871 03/31/2016 -0.51% -3.13%
+ IRC 12/15/2015 real estate funds managed by DRA Advisors LLC (N/A) All Cash $2.3 billion $10.60 $10.71 636,650 06/30/2016 -1.03% -2.50%
+ FRM 11/02/2015 Team, Inc. (TISI) All Stock $335 million $5.16 $5.24 238,137 03/31/2016 -1.53% -9.44%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $19.15 $19.57 50,161 09/30/2016 -2.14% -3.23%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $16.98 $17.37 16,020 06/30/2016 -2.26% -5.49%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $20.49 1,972,864 02/03/2016 -2.39% -436.43%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $58.50 $59.97 1,644,519 06/30/2016 -2.44% -5.95%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $24.82 $25.70 549,373 06/30/2016 -3.41% -8.29%
+ ANAD 01/19/2016 II-VI Incorporated (IIVI) All Cash $61 million $0.66 $0.690 503,573 03/31/2016 -4.35% -26.90%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.60 $6.00 206,954 03/31/2015 -23.31% 27.71%

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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