Merger Arbitrage Mondays – March 14, 2016

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March 13, 2016 | Merger Arbitrage | | Author Asif

Merger activity decreased last week with two new deals announced. None of the pending deals closed last week.

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 41
Total Number of Deals Not Completed in 2016 2
Total Number of Pending Deals
Cash Deals 46
Stock Deals 16
Stock & Cash Deals 20
Special Conditions 10
Total Number of Pending Deals 92
Total Deal Size $906.72 billion

New Deals:

  1. The acquisition of 1st Century Bancshares (FCTY) by Midland Financial for $11.22 per share in cash.
  2. The acquisition of Laporte Bancorp (LPSB) by Horizon Bancorp (HBNC) for $94.1 million in a cash or stock deal. Under the terms of the agreement, shareholders of Laporte Bancorp will have the option to receive $17.50 per share in cash or 0.629 shares of Horizon common stock, or a combination of both, for each share of LaPorte Bancorp’s common stock. LaPorte Bancorp shareholders will receive total consideration that consists of 65% stock and 35% cash. We are going to treat this as an all-stock deal in our Merger Arbitrage tool.

Deal Updates:

  1. On March 9, 2016, Vivint Solar (VSLR) announced that it has terminated a deal to be taken over by SunEdison (SUNE).
  2. On March 7, 2016, Fuel Systems (FSYS) signed an amendment to the Merger Agreement with Westport (WPRT). In light of current market volatility, the exchange ratio of the Merger Agreement has been amended to include a collar mechanism in order to provide Fuel Systems stockholders with greater certainty regarding the consideration they will receive upon closing of the Merger. In the event that the NASDAQ volume weighted average price of Westport common shares during a specified measuring period (“VWAP”) is equal to or greater than $2.37, then Fuel Systems stockholders will receive 2.129 Westport common shares per Fuel Systems share on closing of the Merger and through the exchange process. In the event Westport’s VWAP is equal to or less than $1.64, Fuel Systems stockholders would receive approximately 3.08 Westport common shares per Fuel Systems share on closing of the merger and through the exchange process. In the event that Westport’s VWAP is greater than $1.64 and less than $2.37, then Fuel Systems stockholders would receive a number of Westport common shares per Fuel Systems share equal to dividing $5.05 by Westport’s VWAP, rounded to four decimal places. The measuring period will be the ten consecutive trading days ending on and including the trading day five business days prior to the anticipated closing date. The Merger currently is anticipated to close in late March 2016. Since WPRT is currently trading over $2.37 and the deal is supposed to close in the next few days, we are not making any adjustment to the deal terms in our tool.
  3. On March 11, 2016, the District of Columbia officials said that they continue to oppose a proposal by power companies Exelon (EXC) and Pepco (POM) to salvage their $6.8 billion merger, but the deal isn’t dead yet, the companies said.

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 $16.01 06/30/2016 171.71% 580.30%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.38 $5.285 05/16/2016 77.55% 449.27%
BHI 11/16/2014 Halliburton Company (HAL) $59.45 $45.79 04/30/2016 29.84% 231.75%
POM 04/30/2014 Exelon Corporation (EXC) $27.25 $22.07 03/31/2016 23.47% 503.93%
CI 07/24/2015 Anthem, Inc. (ANTM) $177.13 $144.62 12/31/2016 22.48% 28.10%
CNL 10/20/2014 Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A) $55.37 $46.90 03/31/2016 18.06% 387.75%
HUM 07/03/2015 Aetna Inc. (AET) $220.03 $186.91 12/31/2016 17.72% 22.15%
AGN 11/23/2015 Pfizer Inc. (PFE) $344.65 $298.70 12/31/2016 15.38% 19.23%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.67 12/31/2016 15.26% 19.07%
HOT 11/16/2015 Marriott International, Inc. (MAR) $79.88 $70.42 06/30/2016 13.43% 45.40%

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 $16.01 12,218,258 06/30/2016 171.71% 580.30%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.38 $5.285 4,645,724 05/16/2016 77.55% 449.27%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $59.45 $45.79 3,679,532 04/30/2016 29.84% 231.75%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $22.07 16,619,537 03/31/2016 23.47% 503.93%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $177.13 $144.62 1,014,709 12/31/2016 22.48% 28.10%
+ 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 $46.90 1,018,478 03/31/2016 18.06% 387.75%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $220.03 $186.91 724,438 12/31/2016 17.72% 22.15%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $344.65 $298.70 2,354,325 12/31/2016 15.38% 19.23%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.67 130,728 12/31/2016 15.26% 19.07%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $12.2 billion $79.88 $70.42 3,904,144 06/30/2016 13.43% 45.40%
+ 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 $8.38 687,572 12/31/2016 13.37% 16.71%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.97 17,438,456 12/31/2016 12.92% 16.15%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Special Conditions $19 billion $86.50 $76.70 4,486,208 09/30/2016 12.78% 23.32%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $11.70 1,047,993 04/01/2016 11.11% 225.31%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.70 301,253 06/30/2016 8.11% 27.40%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $36.19 2,391,024 12/31/2016 7.49% 9.36%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.23 $13.25 647,248 08/15/2016 7.41% 17.55%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $31.22 196,810 06/30/2016 7.30% 24.68%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.50 $2.33 92,209 03/31/2016 7.17% 153.89%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $41.99 $39.40 6,423,533 06/30/2016 6.58% 22.22%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $32.89 2,234,214 06/30/2016 6.11% 20.65%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $45.41 $42.91 975,903 12/31/2016 5.82% 7.28%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $25.42 249,265 06/30/2016 5.43% 18.35%
+ 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 $2.39 474,849 06/30/2016 5.02% 16.97%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $53.40 1,221,347 06/30/2016 4.87% 16.46%
+ MCOX 12/22/2015 Minat Associated Co. Ltd. (N/A) All Cash N/A $4.00 $3.82 775 06/30/2016 4.71% 15.92%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $16.38 $15.78 692,388 12/31/2016 3.80% 4.75%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $5.90 $5.69 36,237 03/31/2016 3.64% 78.23%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.18 97,889 04/30/2016 3.39% 26.34%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.68 481,450 03/31/2016 3.26% 70.01%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $10.87 3,469,133 12/31/2016 3.22% 4.02%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $201.48 $195.91 1,294,409 06/30/2016 2.84% 9.61%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $37.27 $36.28 1,620,806 09/30/2016 2.74% 4.99%
+ LSG 02/08/2016 Tahoe Resources Inc. (TAHO) All Stock $677 million $1.48 $1.44 543,737 04/15/2016 2.69% 30.68%
+ ATNY 02/29/2016 an affiliate of private equity firm J. F. Lehman & Company (N/A) All Cash $110 million $2.00 $1.95 224,802 06/30/2016 2.56% 8.67%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $16.39 $15.99 13,524 06/30/2016 2.49% 8.42%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.68 $19.21 71,009 09/15/2016 2.46% 4.86%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.38 17,433 03/31/2016 2.44% 52.37%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.69 77,129 06/30/2016 2.26% 7.65%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $64.70 794,717 12/31/2016 2.01% 2.51%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.70 $10.51 244,079 06/30/2016 1.80% 6.07%
+ HNT 07/02/2015 Centene Corp. (CNC) Cash Plus Stock $6.8 billion $65.99 $64.87 872,101 03/31/2016 1.72% 36.96%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.08 44,204 08/15/2016 1.61% 3.81%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.48 391,344 03/31/2017 1.55% 1.48%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $9.93 $9.78 1,042,838 09/30/2016 1.53% 2.79%
+ 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 $41.40 2,188,766 06/30/2016 1.45% 4.90%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $21.89 $21.58 2,930,050 09/30/2016 1.44% 2.63%
+ BLT 12/10/2015 American Securities LLC and P2 Capital Partners, LLC (N/A) All Cash $855 million $10.00 $9.86 931,848 06/30/2016 1.42% 4.80%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $10.09 $9.95 33,891 04/30/2016 1.40% 10.86%
+ LF 02/05/2016 VTech Holdings Limited (N/A) All Cash $72 million $1.00 $0.987 235,541 06/30/2016 1.32% 4.45%
+ JAH 12/14/2015 Newell Rubbermaid Inc. (NWL) Cash Plus Stock $13 billion $56.48 $55.75 4,261,127 06/30/2016 1.31% 4.42%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $70.09 $69.22 1,433,035 06/30/2016 1.25% 4.22%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.87 $14.69 4,890 09/30/2016 1.22% 2.23%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.35 $13.19 46,083 09/30/2016 1.20% 2.20%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $141.57 993,553 03/31/2016 1.01% 21.69%
+ HMIN 12/07/2015 BTG Hotels Group (N/A) All Cash N/A $35.80 $35.46 500,514 06/30/2016 0.96% 3.24%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $18.11 $17.95 15,238 06/30/2016 0.89% 2.99%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $37.19 17,053 03/31/2016 0.83% 17.90%
+ POWR 02/24/2016 Southern Company (SO) All Cash $431 million $18.75 $18.62 571,462 06/30/2016 0.70% 2.36%
+ BONA 12/15/2015 Mountain Tiger International Limited (N/A) All Cash $1 billion $13.70 $13.61 254,711 06/30/2016 0.66% 2.23%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.04 757,911 12/15/2016 0.59% 0.78%
+ JMI 03/02/2016 ARMOUR Residential REIT, Inc. (ARR) Special Conditions $84.7 million $7.14 $7.10 261,886 06/30/2016 0.56% 1.90%
+ RLD 11/09/2015 Rizvi Traverse Management, LLC (N/A) All Cash $551 million $11.00 $10.94 1,377,275 03/31/2016 0.55% 11.78%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $93.51 $93.00 252,919 05/31/2016 0.55% 2.56%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $27.45 1,423,038 03/31/2016 0.55% 11.73%
+ CAM 08/26/2015 Schlumberger Limited (SLB) Cash Plus Stock $14.8 billion $68.14 $67.77 1,886,294 03/31/2016 0.55% 11.72%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $15.93 $15.84 7,533 06/30/2016 0.55% 1.84%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $24.89 1,811,983 12/15/2016 0.44% 0.58%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.43 1,932,460 06/30/2016 0.44% 1.48%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.21 122,187 03/31/2016 0.43% 9.32%
+ ATML 01/19/2016 Microchip Technology Inc. (MCHP) Special Conditions $3.40 billion $8.15 $8.12 5,620,654 06/30/2016 0.37% 1.25%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.78 256,493 12/31/2016 0.37% 0.46%
+ NEWP 02/23/2016 MKS Instruments, Inc. (MKSI) All Cash $980 million $23.00 $22.93 326,952 06/30/2016 0.31% 1.03%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $23.52 $23.45 806,899 06/30/2016 0.29% 1.00%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $11.97 65,424 03/31/2016 0.25% 5.38%
+ ANAD 01/19/2016 II-VI Incorporated (IIVI) All Cash $61 million $0.85 $0.848 346,709 03/31/2016 0.24% 5.06%
+ PRE 08/03/2015 EXOR S.p.A. (N/A) All Cash $6.9 billion $140.50 $140.34 1,268,274 03/31/2016 0.11% 2.45%
+ IRC 12/15/2015 real estate funds managed by DRA Advisors LLC (N/A) All Cash $2.3 billion $10.60 $10.59 757,634 06/30/2016 0.09% 0.32%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $25.58 26,260 09/30/2016 0.08% 0.14%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $20.00 896,198 03/17/2016 0.00% 0.00%
+ AFFX 01/26/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $1.3 billion $14.00 $14.00 669,172 06/30/2016 0.00% 0.00%
+ LOJN 02/01/2016 CalAmp Corp. (CAMP) All Cash $134 million $6.45 $6.45 128,163 05/31/2016 0.00% 0.00%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $30.00 698,707 12/31/2016 0.00% 0.00%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.28 187,101 09/30/2016 -0.16% -0.30%
+ CKP 03/02/2016 an affiliate of CCL Industries Inc. (N/A) All Cash $443 million $10.15 $10.19 748,791 09/30/2016 -0.39% -0.72%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $64.36 $64.79 729,684 06/30/2016 -0.66% -2.24%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $27.13 1,569,286 06/30/2016 -1.40% -4.73%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.89 $13.09 15,853 03/31/2016 -1.55% -33.28%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $43.35 $44.16 214,346 06/30/2016 -1.83% -6.19%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $18.94 $19.30 25,575 09/30/2016 -1.88% -3.44%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $14.54 $15.20 415,949 09/30/2016 -4.37% -7.97%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.95 $5.64 81,454 03/31/2015 -12.29% 12.85%

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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