Merger Arbitrage Mondays – March 21, 2016

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March 20, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with five 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 43
Total Number of Deals Not Completed in 2016 2
Total Number of Pending Deals
Cash Deals 49
Stock Deals 16
Stock & Cash Deals 20
Special Conditions 10
Total Number of Pending Deals 95
Total Deal Size $933.58 billion

New Deals:

  1. The acquisition of The Fresh Market (TFM) by Apollo Global Management (APO) for $1.36 billion or $28.50 per share in cash.
  2. The acquisition of Rofin-Sinar Technologies (RSTI) by Coherent (COHR) for $942 million or $32.50 per share in cash.
  3. The acquisition of China Nepstar Chain Drugstore (NPD) by China Neptunus Drugstore Holding and Neptunus Global Limited for $258.66 million or $2.62 per share in cash.
  4. The acquisition of Columbia Pipeline Group (CPGX) by TransCanada Corporation (TRP) for approximately $13 billion or $25.50 per share in cash.
  5. The acquisition of The Valspar Corporation (VAL) by The Sherwin-Williams Company (SHW) for $11.3 billion or $113 per share in cash.

Deal Updates:

  1. On March 14, 2016, Starwood Hotels & Resorts Worldwide (HOT) announced that on March 10, 2016 it received a non-binding proposal from a consortium of companies (the “Consortium”) to acquire all of the outstanding shares of common stock of Starwood for $76.00 per share in cash. Starwood’s Board of Directors has not changed its recommendation in support of Starwood’s merger with Marriott. The Board, in consultation with its legal and financial advisors, will carefully consider the outcome of its discussions with the Consortium in order to determine the course of action that is in the best interest of Starwood and its stockholders.
  2. On March 18, 2016, Starwood Hotels & Resorts Worldwide (HOT) announced that it has received a revised binding and fully financed proposal from a consortium consisting of Anbang Insurance Group , J.C. Flowers & Co. and Primavera Capital Limited (the “Consortium”), that the Starwood Board of Directors, in consultation with its legal and financial advisors, has determined constitutes a “Superior Proposal,” as defined in Starwood’s merger agreement with Marriott International (MAR). Consistent with the terms of the Marriott merger agreement, Marriott has the right until 11:59 p.m. ET on March 28, 2016 to negotiate revisions to the existing merger agreement between Marriott and Starwood so that the proposal from the Consortium no longer constitutes a “Superior Proposal”.  Starwood will negotiate in good faith with Marriott during this period, and the Starwood Board will consider in good faith any changes to the Marriott agreement that Marriott may propose during this period.

Closed Deals:

  1. The acquisition of Anadigics (ANAD) by II-VI Incorporated (IIVI) on March 16, 2016. It took 57 days for this deal to be completed.
  2. The acquisition of PartnerRe (PRE) by EXOR S.p.A. on March 18, 2016. It took 228 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 $18.15 06/30/2016 139.67% 504.75%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.44 $5.76 05/16/2016 63.85% 416.19%
VAL 03/20/2016 The Sherwin-Williams Company (SHW) $113.00 $83.83 03/31/2017 34.80% 33.87%
CI 07/24/2015 Anthem, Inc. (ANTM) $176.91 $139.53 12/31/2016 26.79% 34.31%
BHI 11/16/2014 Halliburton Company (HAL) $59.66 $47.44 04/30/2016 25.75% 234.97%
POM 04/30/2014 Exelon Corporation (EXC) $27.25 $21.97 03/31/2016 24.03% 877.20%
AGN 11/23/2015 Pfizer Inc. (PFE) $332.79 $268.78 12/31/2016 23.81% 30.50%
HUM 07/03/2015 Aetna Inc. (AET) $219.31 $184.60 12/31/2016 18.80% 24.08%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.66 12/31/2016 15.57% 19.95%
CNL 10/20/2014 Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A) $55.37 $48.35 03/31/2016 14.52% 529.95%

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 $18.15 15,449,744 06/30/2016 139.67% 504.75%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.44 $5.76 10,089,149 05/16/2016 63.85% 416.19%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $83.83 1,386,787 03/31/2017 34.80% 33.87%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $176.91 $139.53 1,145,991 12/31/2016 26.79% 34.31%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $59.66 $47.44 5,375,627 04/30/2016 25.75% 234.97%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $21.97 4,094,593 03/31/2016 24.03% 877.20%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $332.79 $268.78 6,276,659 12/31/2016 23.81% 30.50%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $219.31 $184.60 888,413 12/31/2016 18.80% 24.08%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.66 55,525 12/31/2016 15.57% 19.95%
+ 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 $48.35 1,156,075 03/31/2016 14.52% 529.95%
+ 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 1,405,334 12/31/2016 13.37% 17.12%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Special Conditions $19 billion $86.50 $76.57 4,721,645 09/30/2016 12.97% 24.53%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.97 8,749,082 12/31/2016 12.92% 16.55%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $49.90 1,188,316 06/30/2016 12.22% 44.18%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $11.73 4,421,049 04/01/2016 10.83% 359.26%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $6.41 $5.79 93,268 03/31/2016 10.68% 389.77%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.63 169,939 06/30/2016 10.19% 36.84%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.32 $13.29 670,416 08/15/2016 7.74% 19.22%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $45.04 $42.02 2,908,144 12/31/2016 7.18% 9.19%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $41.86 $39.06 14,354,969 06/30/2016 7.16% 25.87%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $36.35 3,507,252 12/31/2016 7.02% 8.98%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $32.79 7,256,570 06/30/2016 6.43% 23.25%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $38.67 $36.56 5,280,267 09/30/2016 5.76% 10.89%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.50 74,667 09/30/2016 4.80% 9.08%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.99 $15.30 1,427,169 12/31/2016 4.51% 5.78%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.66 281,437 03/31/2016 3.83% 139.62%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.33 1,782,993 12/31/2016 3.73% 4.78%
+ 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 $2.42 1,290,712 06/30/2016 3.72% 13.44%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.42 948,989 06/30/2016 3.33% 12.04%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.85 $10.50 953,135 06/30/2016 3.30% 11.92%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $16.56 $16.03 29,142 06/30/2016 3.30% 11.91%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.21 130,814 04/30/2016 3.26% 29.78%
+ MCOX 12/22/2015 Minat Associated Co. Ltd. (N/A) All Cash N/A $4.00 $3.88 15,756 06/30/2016 3.09% 11.18%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $208.72 $202.90 3,094,645 06/30/2016 2.87% 10.37%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.36 90,134 03/31/2016 2.72% 99.18%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $24.84 70,723,055 12/31/2016 2.66% 3.40%
+ ATNY 02/29/2016 an affiliate of private equity firm J. F. Lehman & Company (N/A) All Cash $110 million $2.00 $1.95 528,326 06/30/2016 2.56% 9.27%
+ HNT 07/02/2015 Centene Corp. (CNC) Cash Plus Stock $6.8 billion $64.66 $63.10 955,581 03/31/2016 2.48% 90.35%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $64.50 2,144,682 12/31/2016 2.33% 2.98%
+ 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 $41.08 3,534,642 06/30/2016 2.24% 8.09%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.70 115,861 06/30/2016 2.19% 7.91%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.30 362,243 03/31/2017 2.10% 2.05%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $10.99 139,587 12/31/2016 2.09% 2.68%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.51 $13.29 43,025 09/30/2016 1.69% 3.20%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $21.63 $21.28 3,571,629 09/30/2016 1.66% 3.13%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.37 200,739 06/30/2016 1.63% 5.89%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.50 $2.46 84,474 03/31/2016 1.50% 54.90%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.10 5,967 08/15/2016 1.45% 3.60%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $15.13 $14.92 838 09/30/2016 1.42% 2.69%
+ LF 02/05/2016 VTech Holdings Limited (N/A) All Cash $72 million $1.00 $0.986 629,761 06/30/2016 1.42% 5.13%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.05 $9.91 5,522,912 09/30/2016 1.36% 2.58%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $24.69 3,102,064 12/15/2016 1.26% 1.70%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $29.69 1,345,618 12/31/2016 1.04% 1.34%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.64 $19.44 131,239 09/15/2016 1.01% 2.07%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $141.57 1,056,076 08/15/2016 1.01% 2.51%
+ BLT 12/10/2015 American Securities LLC and P2 Capital Partners, LLC (N/A) All Cash $855 million $10.00 $9.90 421,391 06/30/2016 1.01% 3.65%
+ CAM 08/26/2015 Schlumberger Limited (SLB) Cash Plus Stock $14.8 billion $67.08 $66.42 2,337,736 03/31/2016 0.99% 36.29%
+ HMIN 12/07/2015 BTG Hotels Group (N/A) All Cash N/A $35.80 $35.47 731,583 06/30/2016 0.93% 3.36%
+ BONA 12/15/2015 Mountain Tiger International Limited (N/A) All Cash $1 billion $13.70 $13.58 319,043 06/30/2016 0.88% 3.19%
+ JAH 12/14/2015 Newell Rubbermaid Inc. (NWL) Cash Plus Stock $13 billion $58.05 $57.56 3,479,741 06/30/2016 0.85% 3.07%
+ JMI 03/02/2016 ARMOUR Residential REIT, Inc. (ARR) Special Conditions $84.7 million $7.14 $7.08 223,750 06/30/2016 0.85% 3.06%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.00 1,494,867 12/15/2016 0.82% 1.12%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $37.20 69,376 03/31/2016 0.81% 29.44%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $92.97 $92.23 323,100 05/31/2016 0.80% 4.11%
+ POWR 02/24/2016 Southern Company (SO) All Cash $431 million $18.75 $18.61 636,782 06/30/2016 0.75% 2.72%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $71.71 $71.18 1,461,224 06/30/2016 0.74% 2.69%
+ NEWP 02/23/2016 MKS Instruments, Inc. (MKSI) All Cash $980 million $23.00 $22.87 627,456 06/30/2016 0.57% 2.05%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $23.77 $23.65 715,884 06/30/2016 0.52% 1.88%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $17.93 $17.84 12,991 06/30/2016 0.49% 1.76%
+ RLD 11/09/2015 Rizvi Traverse Management, LLC (N/A) All Cash $551 million $11.00 $10.95 684,786 03/31/2016 0.46% 16.67%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $27.48 1,133,511 03/31/2016 0.44% 15.94%
+ ATML 01/19/2016 Microchip Technology Inc. (MCHP) Special Conditions $3.40 billion $8.15 $8.12 4,848,861 06/30/2016 0.37% 1.34%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.46 5,647,770 06/30/2016 0.33% 1.18%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $16.61 $16.56 97,840 06/30/2016 0.30% 1.07%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $11.97 94,497 03/31/2016 0.25% 9.15%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.23 522,731 03/31/2016 0.22% 7.91%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.90 957,945 12/31/2016 0.17% 0.21%
+ LOJN 02/01/2016 CalAmp Corp. (CAMP) All Cash $134 million $6.45 $6.44 307,263 05/31/2016 0.16% 0.80%
+ IRC 12/15/2015 real estate funds managed by DRA Advisors LLC (N/A) All Cash $2.3 billion $10.60 $10.59 1,076,345 06/30/2016 0.09% 0.34%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.25 577,707 09/30/2016 0.00% 0.00%
+ LSG 02/08/2016 Tahoe Resources Inc. (TAHO) All Stock $677 million $1.63 $1.63 568,467 04/15/2016 -0.01% -0.15%
+ TFM 03/14/2016 Apollo Global Management, LLC (APO) All Cash $1.36 billion $28.50 $28.52 3,497,416 06/30/2016 -0.07% -0.25%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $20.04 1,199,431 03/17/2016 -0.20% 18.21%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $65.11 $65.33 1,198,826 06/30/2016 -0.34% -1.22%
+ CKP 03/02/2016 an affiliate of CCL Industries Inc. (N/A) All Cash $443 million $10.15 $10.21 1,085,753 09/30/2016 -0.59% -1.11%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.92 520,038 06/30/2016 -0.63% -2.28%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $12.2 billion $79.88 $80.57 24,684,975 06/30/2016 -0.86% -3.09%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.16 $13.33 43,965 03/31/2016 -1.29% -47.10%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.45 $15.70 82,860 09/30/2016 -1.60% -3.03%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $26.10 20,536 09/30/2016 -1.92% -3.62%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $18.95 $19.40 48,224 09/30/2016 -2.34% -4.42%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $9.85 $10.10 187,296 04/30/2016 -2.48% -22.59%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $43.00 $44.29 94,592 06/30/2016 -2.92% -10.55%
+ AFFX 01/26/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $1.3 billion $14.00 $15.99 13,714,733 06/30/2016 -12.45% -44.98%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.36 $5.41 1,642,198 03/31/2015 -19.36% 19.85%

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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