Merger Arbitrage Mondays – February 15, 2016

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February 14, 2016 | 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 2016 23
Total Number of Deals Not Completed in 2016 1
Total Number of Pending Deals
Cash Deals 43
Stock Deals 23
Stock & Cash Deals 21
Special Conditions 10
Total Number of Pending Deals 97
Total Deal Size $887.25 billion

New Deals:

  1. The acquisition of Apollo Education Group (APOL) by a consortium of investors including The Vistria Group, funds affiliated with Apollo Global Management and and Najafi Companies for $1.1 billion or $9.50 per share in cash.
  2. The acquisition of Lake Shore Gold (LSG) by Tahoe Resources (TAHO) for approximately $677 million in an all stock deal. Under the terms of the agreement, all of the Lake Shore Gold common shares will be exchanged on the basis of 0.1467 of a Tahoe common share per each Lake Shore Gold common share.
  3. The acquisition of ITC Holdings (ITC) by Fortis (FTS.TO) for $11.3 billion in a cash plus stock deal. Under the terms of the agreement, ITC shareholders will receive US$22.57 in cash and 0.7520 Fortis shares per ITC share.
  4. The acquisition of The Empire District Electric Company (EDE) by Algonquin Power & Utilities (AQN.TO) for $2.4 billion or $34.00 per share in cash.

Closed Deals:

  1. The acquisition of Ocata Therapeutics (OCAT) by Astellas Pharma on February 10, 2016. It took 92 days for this deal to be completed.
  2. The acquisition of Constant Contact (CTCT) by Endurance International Group Holdings (EIGI) on February 10, 2016. It took 100 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 $13.47 06/30/2016 222.94% 598.33%
VSLR 07/20/2015 SunEdison, Inc. (SUNE) $15.25 $5.45 03/31/2016 179.82% 1458.51%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.07 $4.94 05/16/2016 83.61% 335.37%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.25 12/31/2016 30.15% 34.39%
HUM 07/03/2015 Aetna Inc. (AET) $208.16 $160.14 12/31/2016 29.99% 34.21%
BHI 11/16/2014 Halliburton Company (HAL) $51.60 $39.90 04/30/2016 29.33% 142.75%
SNDK 10/21/2015 Western Digital Corporation (WDC) $86.50 $67.49 09/30/2016 28.17% 45.09%
CI 07/24/2015 Anthem, Inc. (ANTM) $166.02 $130.30 12/31/2016 27.42% 31.27%
HOT 11/16/2015 Marriott International, Inc. (MAR) $79.88 $64.01 06/30/2016 24.79% 66.54%
AGN 11/23/2015 Pfizer Inc. (PFE) $331.77 $279.75 12/31/2016 18.59% 21.21%

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 $13.47 8,537,947 06/30/2016 222.94% 598.33%
+ VSLR 07/20/2015 SunEdison, Inc. (SUNE) Special Conditions $2.2 billion $15.25 $5.45 690,898 03/31/2016 179.82% 1458.51%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.07 $4.94 5,352,818 05/16/2016 83.61% 335.37%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.25 15,947 12/31/2016 30.15% 34.39%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $208.16 $160.14 691,003 12/31/2016 29.99% 34.21%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $51.60 $39.90 4,232,998 04/30/2016 29.33% 142.75%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Special Conditions $19 billion $86.50 $67.49 1,796,304 09/30/2016 28.17% 45.09%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $166.02 $130.30 683,285 12/31/2016 27.42% 31.27%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $12.2 billion $79.88 $64.01 1,186,398 06/30/2016 24.79% 66.54%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $331.77 $279.75 2,719,539 12/31/2016 18.59% 21.21%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $11.00 762,387 04/01/2016 18.18% 144.27%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.82 13,220,385 12/31/2016 15.09% 17.21%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $8.05 $7.10 63,199 04/30/2016 13.39% 65.17%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $29.60 337,154 06/30/2016 13.18% 35.36%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $15.17 878,271 12/15/2016 12.99% 15.59%
+ APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) All Cash $1.1 billion $9.50 $8.60 2,076,726 12/31/2016 10.47% 11.94%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $22.73 40,249 04/30/2016 9.99% 48.60%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.49 209,355 03/31/2016 8.88% 72.05%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $42.28 $39.08 6,121,639 12/31/2016 8.20% 9.35%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $41.70 $38.67 6,453,581 06/30/2016 7.83% 21.01%
+ BLT 12/10/2015 American Securities LLC and P2 Capital Partners, LLC (N/A) All Cash $855 million $10.00 $9.28 433,611 06/30/2016 7.76% 20.82%
+ MY 02/03/2016 A consortium of investors (the �Buyer Consortium�), including Mr. Chuanwei Zhang , the Chairman and Chief Executive Officer of the Company (N/A) All Cash $408 million $2.51 $2.33 490,494 06/30/2016 7.73% 20.73%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $32.43 1,511,786 06/30/2016 7.62% 20.44%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.72 335,781 03/31/2016 7.53% 61.05%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.04 $1.90 22,941 03/31/2016 7.33% 59.43%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.11 225,477 06/30/2016 6.79% 18.22%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.60 $14.64 1,275,519 12/31/2016 6.56% 7.48%
+ MCOX 12/22/2015 Minat Associated Co. Ltd. (N/A) All Cash N/A $4.00 $3.76 690 06/30/2016 6.38% 17.13%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $25.20 128,164 06/30/2016 6.35% 17.04%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $52.74 2,299,024 06/30/2016 6.18% 16.59%
+ HMIN 12/07/2015 BTG Hotels Group (N/A) All Cash N/A $35.80 $34.02 213,313 06/30/2016 5.23% 14.04%
+ RLD 11/09/2015 Rizvi Traverse Management, LLC (N/A) All Cash $551 million $11.00 $10.50 362,420 03/31/2016 4.76% 38.62%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.25 59,804 03/31/2016 4.28% 34.68%
+ LF 02/05/2016 VTech Holdings Limited (N/A) All Cash $72 million $1.00 $0.962 452,920 06/30/2016 3.95% 10.60%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $9.43 $9.10 3,903,963 09/30/2016 3.66% 5.86%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $15.01 $14.51 25,800 06/30/2016 3.45% 9.27%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $24.75 19,555 09/30/2016 3.43% 5.50%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $34.64 $33.52 5,050,551 09/30/2016 3.33% 5.33%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $12.98 $12.57 52,387 09/30/2016 3.25% 5.21%
+ 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 $53.67 252,554 03/31/2016 3.17% 25.69%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $190.74 $184.99 2,233,781 06/30/2016 3.11% 8.34%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $32.99 1,046,990 03/31/2017 3.06% 2.73%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.47 32,366 01/31/2016 2.82% 0.00%
+ MR 11/04/2015 Excelsior Union Limited and Solid Union Limited (N/A) All Cash $3.3 billion $28.00 $27.25 1,007,468 03/31/2016 2.75% 22.32%
+ JAH 12/14/2015 Newell Rubbermaid Inc. (NWL) Cash Plus Stock $13 billion $50.99 $49.66 2,131,108 06/30/2016 2.68% 7.18%
+ NBBC 10/13/2015 Yadkin Financial Corporation (YDKN) All Stock $456 million $10.81 $10.54 57,745 06/30/2016 2.56% 6.88%
+ SLH 09/13/2015 an affiliate of Vista Equity Partners (N/A) All Cash $6.5 billion $55.85 $54.46 546,699 03/31/2016 2.55% 20.70%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $19.52 $19.04 2,043,157 09/30/2016 2.50% 4.01%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.59 2,491,147 03/31/2016 2.48% 20.13%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.02 $9.80 694,219 06/30/2016 2.28% 6.12%
+ CCG 10/16/2015 affiliates of Harrison Street Real Estate Capital, LLC (N/A) All Cash $1.9 billion $7.03 $6.88 1,366,773 03/31/2016 2.18% 17.68%
+ GMCR 12/07/2015 JAB Holding Company (N/A) All Cash $13.9 billion $92.00 $90.05 2,205,469 03/31/2016 2.17% 17.56%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $64.63 624,643 12/31/2016 2.12% 2.42%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $140.10 973,866 03/31/2016 2.07% 16.79%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $65.03 $63.80 967,575 06/30/2016 1.92% 5.15%
+ BONA 12/15/2015 Mountain Tiger International Limited (N/A) All Cash $1 billion $13.70 $13.45 383,960 06/30/2016 1.86% 4.99%
+ ALU 04/15/2015 Nokia Corporation (NOK) All Stock $16.6 billion $3.22 $3.17 2,900,781 06/30/2016 1.67% 4.49%
+ HNT 07/02/2015 Centene Corp. (CNC) Cash Plus Stock $6.8 billion $61.73 $60.72 1,280,995 03/31/2016 1.67% 13.52%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.19 374,917 12/31/2016 1.37% 1.56%
+ ATML 01/19/2016 Microchip Technology Inc. (MCHP) Special Conditions $3.40 billion $8.15 $8.04 1,884,466 06/30/2016 1.37% 3.67%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.18 2,499,689 06/30/2016 1.36% 3.65%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $18.82 $18.59 102,524 09/15/2016 1.21% 2.08%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $14.78 $14.63 10,766 06/30/2016 1.03% 2.77%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $27.33 929,979 03/31/2016 0.99% 8.01%
+ TSYS 11/23/2015 Comtech Telecommunications Corp. (CMTL) All Cash $339.7 million $5.00 $4.96 623,164 03/31/2016 0.81% 6.54%
+ RIVR 10/26/2015 German American Bancorp Inc. (GABC) Cash Plus Stock N/A $33.40 $33.14 7,451 03/31/2016 0.79% 6.37%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.18 264,660 03/31/2016 0.76% 6.18%
+ NGLS 11/03/2015 Targa Resources Corp. (TRGP) All Stock $5.54 billion $10.09 $10.02 3,806,187 03/31/2016 0.73% 5.96%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $91.26 $90.60 212,731 05/31/2016 0.73% 2.52%
+ CAM 08/26/2015 Schlumberger Limited (SLB) Cash Plus Stock $14.8 billion $64.78 $64.36 1,578,041 03/31/2016 0.66% 5.32%
+ LOJN 02/01/2016 CalAmp Corp. (CAMP) All Cash $134 million $6.45 $6.41 119,540 05/31/2016 0.62% 2.15%
+ DMND 10/28/2015 Snyder’s-Lance, Inc. (LNCE) Cash Plus Stock $1.91 billion $35.32 $35.12 142,895 03/31/2016 0.58% 4.71%
+ EZCH 09/30/2015 Mellanox Technologies, Ltd. (MLNX) All Cash $620 million $25.50 $25.39 126,357 03/31/2016 0.43% 3.51%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.05 $13.00 16,900 03/31/2016 0.42% 3.42%
+ ARPI 12/03/2015 American Homes 4 Rent (AMH) All Stock $1.5 billion $15.33 $15.27 322,243 06/30/2016 0.42% 1.12%
+ PCL 11/09/2015 Weyerhaeuser Co. (WY) All Stock $8.44 billion $36.16 $36.01 1,173,880 05/15/2016 0.42% 1.69%
+ SIRO 09/15/2015 DENTSPLY International Inc. (XRAY) All Stock $5.51 billion $99.29 $98.98 402,308 03/31/2016 0.31% 2.55%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $24.93 2,899,281 12/15/2016 0.28% 0.34%
+ SFG 07/23/2015 Meiji Yasuda Life Insurance Company (N/A) All Cash $5 billion $115.00 $114.84 510,354 03/31/2016 0.14% 1.13%
+ KING 11/02/2015 Activision Blizzard, Inc. (ATVI) All Cash $5.9 billion $18.00 $17.98 1,155,571 03/31/2016 0.11% 0.90%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $11.99 21,140 03/31/2016 0.08% 0.68%
+ PRE 08/03/2015 EXOR S.p.A. (N/A) All Cash $6.9 billion $140.50 $140.50 389,557 03/31/2016 0.00% 0.00%
+ METR 08/04/2015 F.N.B. Corporation (FNB) All Stock $474 million $28.14 $28.19 110,759 03/31/2016 -0.16% -1.33%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $23.06 $23.13 682,384 06/30/2016 -0.32% -0.86%
+ AFFX 01/26/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $1.3 billion $14.00 $14.09 726,921 06/30/2016 -0.64% -1.71%
+ IRC 12/15/2015 real estate funds managed by DRA Advisors LLC (N/A) All Cash $2.3 billion $10.60 $10.67 461,861 06/30/2016 -0.66% -1.76%
+ FRM 11/02/2015 Team, Inc. (TISI) All Stock $335 million $4.97 $5.03 38,135 03/31/2016 -1.13% -9.20%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.08 $14.29 11,891 09/30/2016 -1.46% -2.34%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $59.09 $60.01 2,241,426 06/30/2016 -1.54% -4.13%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $18.76 $19.09 11,237 09/30/2016 -1.72% -2.76%
+ ANAD 01/19/2016 II-VI Incorporated (IIVI) All Cash $61 million $0.66 $0.674 133,803 03/31/2016 -2.08% -16.85%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $20.46 791,602 02/18/2016 -2.25% -273.54%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $39.38 $40.55 212,023 06/30/2016 -2.90% -7.78%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $3.95 $4.11 26,713 02/20/2016 -3.91% -285.44%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $15.57 $16.45 23,228 06/30/2016 -5.33% -14.29%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.00 $5.20 153,236 03/31/2015 -23.00% 26.15%
+ LSG 02/08/2016 Tahoe Resources Inc. (TAHO) All Stock $677 million $1.26 $1.71 1,926,369 04/15/2016 -26.56% -161.60%

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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