Merger Arbitrage Mondays – February 29, 2016

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February 28, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with five 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 30
Total Number of Deals Not Completed in 2016 1
Total Number of Pending Deals
Cash Deals 46
Stock Deals 19
Stock & Cash Deals 22
Special Conditions 10
Total Number of Pending Deals 97
Total Deal Size $905.29 billion

New Deals:

  1. The acquisition of Newport (NEWP) by MKS Instruments (MKSI) for $980 million or $23.00 per share in cash.
  2. The acquisition of PowerSecure International (POWR) by Southern Company (SO) for $431 million or $18.75 per share in cash.
  3. The acquisition of Rouse Properties (RSE) by an affiliate of Brookfield Asset Management for $2.8 billion or $18.25 per share in cash.
  4. The acquisition of Apollo Residential Mortgage (AMTG) by Apollo Commercial Real Estate Finance (ARI) for $641 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Apollo Residential Mortgage will receive approximately 0.417 ARI shares of common stock per AMTG share of common stock and approximately $7.53 per share in cash. The cash portion of the consideration, and thus the total purchase price, is subject to adjustment based upon fluctuations in AMTG’s book value.
  5. The acquisition of RR Media (RRM) by SES for $242 million or $13.291 per share in cash.

Deal Updates:

  1. On February 23, 2016, Anadigics (ANAD) announced that it had received a further revised set of proposed amendments and agreements from II – VI Incorporated (IIVI), increasing its per share offer price to $0.81.
  2. On February 24, 2016, Anadigics (ANAD) announced that it had received from the competing bidder referred to as “Party B” a further amendment to its February 20, 2016 acquisition proposal that increases Party B’s per-share offer price from $0.81 to $0.85.  As provided in the II-VI Merger Agreement, and explained in the Company’s February 22, 2016 and February 23, 2016 announcements, II-VI has two business days by which to deliver to the Company an acquisition proposal that it believes would cause the February 24, 2016 Party B Proposed Merger Agreement to no longer constitute a Superior Offer.

Closed Deals:

  1. The acquisition of King Digital Entertainment (KING) by Activision Blizzard (ATVI) on February 23, 2016. It took 113 days for this deal to be completed.
  2. The acquisition of EZchip Semiconductor (EZCH) by Mellanox Technologies (MLNX) on February 23, 2016. It took 146 days for this deal to be completed.
  3. The acquisition of TeleCommunication Systems (TSYS) by Comtech Telecommunications (CMTL) on February 23, 2016. It took 92 days for this deal to be completed.
  4. The acquisition of Alcatel-Lucent (ALU) by Nokia Corporation (NOK) on February 26, 2016. It took 377 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 $15.64 06/30/2016 178.13% 532.94%
VSLR 07/20/2015 SunEdison, Inc. (SUNE) $15.25 $7.93 03/31/2016 92.31% 1086.85%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.33 $5.12 05/16/2016 82.16% 389.44%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.35 12/31/2016 26.27% 31.33%
BHI 11/16/2014 Halliburton Company (HAL) $55.75 $44.25 04/30/2016 25.98% 155.47%
CI 07/24/2015 Anthem, Inc. (ANTM) $171.66 $141.25 12/31/2016 21.53% 25.68%
HUM 07/03/2015 Aetna Inc. (AET) $217.06 $178.71 12/31/2016 21.46% 25.60%
SNDK 10/21/2015 Western Digital Corporation (WDC) $86.50 $72.08 09/30/2016 20.01% 34.12%
CNL 10/20/2014 Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A) $55.37 $46.33 03/31/2016 19.51% 229.74%
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) $9.50 $8.11 12/31/2016 17.14% 20.44%

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 $15.64 10,838,981 06/30/2016 178.13% 532.94%
+ VSLR 07/20/2015 SunEdison, Inc. (SUNE) Special Conditions $2.2 billion $15.25 $7.93 1,744,855 03/31/2016 92.31% 1086.85%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.33 $5.12 4,195,771 05/16/2016 82.16% 389.44%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.35 28,057 12/31/2016 26.27% 31.33%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $55.75 $44.25 2,425,347 04/30/2016 25.98% 155.47%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $171.66 $141.25 1,132,767 12/31/2016 21.53% 25.68%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $217.06 $178.71 1,276,199 12/31/2016 21.46% 25.60%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Special Conditions $19 billion $86.50 $72.08 5,241,094 09/30/2016 20.01% 34.12%
+ 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 $46.33 1,400,730 03/31/2016 19.51% 229.74%
+ 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 $8.11 1,143,990 12/31/2016 17.14% 20.44%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $12.2 billion $79.88 $69.25 1,286,222 06/30/2016 15.35% 45.92%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $29.15 209,413 06/30/2016 14.92% 44.65%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $341.60 $298.07 3,400,466 12/31/2016 14.60% 17.42%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $11.39 601,660 04/01/2016 14.14% 161.23%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.96 8,312,050 12/31/2016 13.07% 15.58%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $22.56 130,217 04/30/2016 10.82% 64.72%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.64 494,253 03/31/2016 9.89% 116.45%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $35.67 3,275,345 12/31/2016 9.06% 10.80%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.00 $12.92 4,755,193 08/15/2016 8.37% 18.19%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $24.74 123,846 06/30/2016 8.33% 24.91%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $32.51 2,428,215 06/30/2016 7.35% 21.99%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $43.40 $40.50 3,062,550 12/31/2016 7.16% 8.54%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $41.86 $39.19 4,092,183 06/30/2016 6.81% 20.38%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $9.77 $9.20 27,319 04/30/2016 6.16% 36.86%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.59 336,704 03/31/2016 5.85% 68.87%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.91 $15.09 4,077,301 12/31/2016 5.43% 6.48%
+ 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 $2.39 298,437 06/30/2016 5.02% 15.02%
+ MCOX 12/22/2015 Minat Associated Co. Ltd. (N/A) All Cash N/A $4.00 $3.81 833 06/30/2016 4.99% 14.92%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.25 198,776 03/31/2016 4.28% 50.34%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $16.45 2,458,017 12/15/2016 4.19% 5.28%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $53.78 1,076,057 06/30/2016 4.13% 12.35%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $36.82 $35.41 3,788,933 09/30/2016 3.97% 6.77%
+ ADT 02/16/2016 An Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management, LLC (N/A) All Cash $6.94 billion $42.00 $40.40 3,320,651 06/30/2016 3.96% 11.85%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.47 74,379 06/30/2016 3.93% 11.77%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $32.76 636,833 03/31/2017 3.79% 3.49%
+ BLT 12/10/2015 American Securities LLC and P2 Capital Partners, LLC (N/A) All Cash $855 million $10.00 $9.64 157,917 06/30/2016 3.73% 11.17%
+ LF 02/05/2016 VTech Holdings Limited (N/A) All Cash $72 million $1.00 $0.97 151,620 06/30/2016 3.09% 9.25%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $15.69 $15.24 29,045 06/30/2016 2.96% 8.85%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $198.02 $192.50 2,038,260 06/30/2016 2.87% 8.57%
+ HMIN 12/07/2015 BTG Hotels Group (N/A) All Cash N/A $35.80 $34.87 1,235,992 06/30/2016 2.67% 7.98%
+ HNT 07/02/2015 Centene Corp. (CNC) Cash Plus Stock $6.8 billion $64.13 $62.53 1,913,920 03/31/2016 2.55% 30.07%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $20.39 $19.89 1,734,767 09/30/2016 2.53% 4.32%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.60 20,338,237 03/31/2016 2.44% 28.77%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $18.99 $18.54 34,205 09/15/2016 2.44% 4.47%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $25.00 13,403 09/30/2016 2.40% 4.09%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.31 $10.08 406,949 06/30/2016 2.30% 6.88%
+ RLD 11/09/2015 Rizvi Traverse Management, LLC (N/A) All Cash $551 million $11.00 $10.79 1,021,466 03/31/2016 1.95% 22.92%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $64.81 661,471 12/31/2016 1.84% 2.19%
+ JAH 12/14/2015 Newell Rubbermaid Inc. (NWL) Cash Plus Stock $13 billion $54.33 $53.41 1,621,070 06/30/2016 1.73% 5.17%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.07 533,562 08/15/2016 1.68% 3.66%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $24.62 3,761,033 12/15/2016 1.54% 1.94%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.95 58,984 01/31/2016 1.49% 0.00%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $9.59 $9.45 1,418,842 09/30/2016 1.48% 2.52%
+ BONA 12/15/2015 Mountain Tiger International Limited (N/A) All Cash $1 billion $13.70 $13.51 191,189 06/30/2016 1.41% 4.21%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $68.91 $67.97 1,837,783 06/30/2016 1.38% 4.12%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.06 $12.88 32,442 09/30/2016 1.36% 2.33%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $6.01 $5.94 66,828 03/31/2015 1.16% 0.00%
+ POWR 02/24/2016 Southern Company (SO) All Cash $431 million $18.75 $18.55 1,659,046 06/30/2016 1.08% 3.23%
+ SLH 09/13/2015 an affiliate of Vista Equity Partners (N/A) All Cash $6.5 billion $55.85 $55.37 802,389 03/31/2016 0.87% 10.21%
+ CCG 10/16/2015 affiliates of Harrison Street Real Estate Capital, LLC (N/A) All Cash $1.9 billion $7.03 $6.97 1,621,070 03/31/2016 0.86% 10.14%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.49 471,858 12/31/2016 0.86% 1.02%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $141.81 382,552 03/31/2016 0.84% 9.88%
+ NEWP 02/23/2016 MKS Instruments, Inc. (MKSI) All Cash $980 million $23.00 $22.81 1,735,840 06/30/2016 0.83% 2.49%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $27.39 827,829 03/31/2016 0.77% 9.03%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.18 225,103 03/31/2016 0.76% 8.98%
+ ATML 01/19/2016 Microchip Technology Inc. (MCHP) Special Conditions $3.40 billion $8.15 $8.09 8,217,994 06/30/2016 0.74% 2.22%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $94.47 $93.85 265,996 05/31/2016 0.66% 2.63%
+ MR 11/04/2015 Excelsior Union Limited and Solid Union Limited (N/A) All Cash $3.3 billion $28.00 $27.85 2,059,721 03/31/2016 0.54% 6.34%
+ RIVR 10/26/2015 German American Bancorp Inc. (GABC) Cash Plus Stock N/A $33.93 $33.75 21,552 03/31/2016 0.54% 6.34%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.63 $14.56 3,336 09/30/2016 0.46% 0.79%
+ FRM 11/02/2015 Team, Inc. (TISI) All Stock $335 million $5.45 $5.43 65,385 03/31/2016 0.45% 5.32%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.18 978,153 09/30/2016 0.39% 0.66%
+ CAM 08/26/2015 Schlumberger Limited (SLB) Cash Plus Stock $14.8 billion $66.33 $66.10 1,196,118 03/31/2016 0.35% 4.07%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.46 3,470,984 06/30/2016 0.33% 0.98%
+ LSG 02/08/2016 Tahoe Resources Inc. (TAHO) All Stock $677 million $1.30 $1.30 325,171 04/15/2016 0.32% 2.54%
+ LOJN 02/01/2016 CalAmp Corp. (CAMP) All Cash $134 million $6.45 $6.43 185,795 05/31/2016 0.31% 1.23%
+ NBBC 10/13/2015 Yadkin Financial Corporation (YDKN) All Stock $456 million $11.39 $11.35 251,102 06/30/2016 0.31% 0.92%
+ PRE 08/03/2015 EXOR S.p.A. (N/A) All Cash $6.9 billion $140.50 $140.11 303,434 03/31/2016 0.28% 3.28%
+ ARPI 12/03/2015 American Homes 4 Rent (AMH) All Stock $1.5 billion $16.13 $16.09 2,092,797 06/30/2016 0.24% 0.71%
+ IRC 12/15/2015 real estate funds managed by DRA Advisors LLC (N/A) All Cash $2.3 billion $10.60 $10.58 1,105,205 06/30/2016 0.19% 0.57%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $22.95 $22.91 1,045,602 06/30/2016 0.18% 0.54%
+ SIRO 09/15/2015 DENTSPLY International Inc. (XRAY) All Stock $5.51 billion $110.07 $109.97 1,319,637 03/31/2016 0.09% 1.04%
+ SFG 07/23/2015 Meiji Yasuda Life Insurance Company (N/A) All Cash $5 billion $115.00 $114.93 261,131 03/31/2016 0.06% 0.72%
+ GMCR 12/07/2015 JAB Holding Company (N/A) All Cash $13.9 billion $92.00 $91.95 2,701,341 03/31/2016 0.05% 0.64%
+ DMND 10/28/2015 Snyder’s-Lance, Inc. (LNCE) Cash Plus Stock $1.91 billion $37.56 $37.56 219,984 03/31/2016 0.01% 0.11%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.94 $12.96 34,663 03/31/2016 -0.13% -1.54%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $12.03 70,907 03/31/2016 -0.25% -2.94%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $20.06 593,897 03/03/2016 -0.30% -36.39%
+ AFFX 01/26/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $1.3 billion $14.00 $14.05 478,734 06/30/2016 -0.36% -1.06%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $15.14 $15.26 9,676 06/30/2016 -0.76% -2.27%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $62.24 $62.79 1,405,952 06/30/2016 -0.87% -2.61%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $18.87 $19.15 40,264 09/30/2016 -1.47% -2.51%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.02 $2.07 57,052 03/31/2016 -2.49% -29.34%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $16.32 $16.99 19,935 06/30/2016 -3.97% -11.89%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $40.40 $42.09 61,791 06/30/2016 -4.00% -11.98%
+ ANAD 01/19/2016 II-VI Incorporated (IIVI) All Cash $61 million $0.81 $0.848 832,252 03/31/2016 -4.48% -52.76%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $3.92 $4.36 56,228 02/20/2016 -10.15% 411.73%

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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