Merger Arbitrage Mondays – March 28, 2016

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March 27, 2016 | Merger Arbitrage | | Author Asif

Merger activity decreased last week with two 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 47
Total Number of Deals Not Completed in 2016 2
Total Number of Pending Deals
Cash Deals 47
Stock Deals 17
Stock & Cash Deals 19
Special Conditions 10
Total Number of Pending Deals 93
Total Deal Size $934.99 billion

New Deals:

  1. IHS (IHS) and Markit (MRKT) announced the signing of a definitive agreement under which the companies will combine in an all-share merger of equals. The combined company will be renamed IHS Markit. Under the terms of the agreement, IHS shareholders will receive 3.5566 common shares of IHS Markit for each share of IHS common stock.
  2. The acquisition of VirtualScopics (VSCP) by BioTelemetry (BEAT) for $15.5 million or $4.05 per share in cash.

Deal Updates:

  1. On March 21, 2016, Marriott International (MAR) and Starwood Hotels & Resorts Worldwide (HOT) announced that the companies have signed an amendment to their definitive merger agreement. Under the terms of the amended merger agreement, Starwood shareholders will receive $21.00 in cash and 0.80 shares of Marriott International  Class A common stock for each share of Starwood Hotels & Resorts Worldwide common stock. Excluding its timeshare business, the transaction values Starwood at approximately $13.6 billion.

Closed Deals:

  1. The acquisition of RealD (RLD) by Rizvi Traverse Management on March 22, 2016. It took 134 days for this deal to be completed.
  2. The acquisition of Pepco Holdings (POM) by Exelon Corporation (EXC) on March 23, 2016. It took 693 days for this deal to be completed.
  3. The acquisition of Health Net (HNT) by Centene (CNC) on March 25, 2016. It took 267 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 $15.35 06/30/2016 183.39% 712.09%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.60 $6.91 05/16/2016 38.99% 290.44%
BHI 11/16/2014 Halliburton Company (HAL) $58.45 $44.68 04/30/2016 30.81% 340.79%
CI 07/24/2015 Anthem, Inc. (ANTM) $175.51 $137.95 12/31/2016 27.23% 35.75%
AGN 11/23/2015 Pfizer Inc. (PFE) $339.90 $279.32 12/31/2016 21.69% 28.48%
HUM 07/03/2015 Aetna Inc. (AET) $219.14 $184.07 12/31/2016 19.05% 25.02%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.59 12/31/2016 17.83% 23.41%
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 $8.25 12/31/2016 15.15% 19.89%
SNDK 10/21/2015 Western Digital Corporation (WDC) $86.50 $75.66 09/30/2016 14.33% 28.12%
CNL 10/20/2014 Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC) (N/A) $55.37 $48.56 03/31/2016 14.02% 1706.24%

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 $15.35 16,644,266 06/30/2016 183.39% 712.09%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.60 $6.91 28,057,438 05/16/2016 38.99% 290.44%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $58.45 $44.68 2,645,017 04/30/2016 30.81% 340.79%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $175.51 $137.95 462,550 12/31/2016 27.23% 35.75%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $339.90 $279.32 2,239,094 12/31/2016 21.69% 28.48%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $219.14 $184.07 484,886 12/31/2016 19.05% 25.02%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.59 40,097 12/31/2016 17.83% 23.41%
+ 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 $8.25 1,032,980 12/31/2016 15.15% 19.89%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Special Conditions $19 billion $86.50 $75.66 6,620,572 09/30/2016 14.33% 28.12%
+ 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 $48.56 1,055,780 03/31/2016 14.02% 1706.24%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $11.54 1,213,426 04/01/2016 12.65% 1154.46%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $8.07 18,363,952 12/31/2016 11.52% 15.13%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $50.69 951,874 06/30/2016 10.48% 40.68%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.67 222,385 06/30/2016 8.99% 34.92%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $36.19 1,380,531 12/31/2016 7.49% 9.83%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $105.88 1,193,444 03/31/2017 6.72% 6.67%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.46 16,633 09/30/2016 6.50% 12.76%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $45.22 $42.48 838,831 12/31/2016 6.46% 8.48%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $16.15 1,401,996 12/15/2016 6.13% 8.54%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $42.42 $40.00 20,267,038 06/30/2016 6.06% 23.52%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $32.96 2,599,156 06/30/2016 5.89% 22.85%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.39 $2.26 21,755 03/31/2016 5.88% 715.79%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $38.13 $36.01 2,094,884 09/30/2016 5.88% 11.54%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.39 $13.65 253,494 08/15/2016 5.42% 14.13%
+ 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 $2.40 166,316 06/30/2016 4.58% 17.80%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $16.18 $15.50 311,947 12/31/2016 4.39% 5.76%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.65 422,963 03/31/2016 4.11% 500.00%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.36 284,141 06/30/2016 3.52% 13.68%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.18 117,623 04/30/2016 3.39% 37.51%
+ MCOX 12/22/2015 Minat Associated Co. Ltd. (N/A) All Cash N/A $4.00 $3.88 17,654 06/30/2016 3.09% 12.01%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.65 23,602 06/30/2016 2.56% 9.96%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.58 25,929 03/31/2016 2.52% 306.00%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $10.97 4,747 12/31/2016 2.28% 2.99%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $207.28 $202.76 1,499,607 06/30/2016 2.23% 8.66%
+ 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 $41.10 1,257,137 06/30/2016 2.19% 8.50%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $122.03 $119.57 1,230,492 12/31/2016 2.05% 2.70%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.41 153,534 03/31/2016 2.02% 246.29%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.42 $10.22 161,735 06/30/2016 1.93% 7.50%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.36 287,190 03/31/2017 1.92% 1.90%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.90 251,795 12/31/2016 1.88% 2.47%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.41 $13.16 24,657 09/30/2016 1.87% 3.67%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.31 134,384 06/30/2016 1.86% 7.23%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $64.80 382,479 12/31/2016 1.85% 2.43%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.04 12,961,265 12/31/2016 1.84% 2.41%
+ LF 02/05/2016 VTech Holdings Limited (N/A) All Cash $72 million $1.00 $0.985 264,080 06/30/2016 1.52% 5.91%
+ ATNY 02/29/2016 an affiliate of private equity firm J. F. Lehman & Company (N/A) All Cash $110 million $2.00 $1.97 49,066 06/30/2016 1.52% 5.91%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.10 1,447 08/15/2016 1.45% 3.78%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $5.94 $5.86 19,036 03/31/2016 1.36% 165.91%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $9.91 $9.78 1,711,418 09/30/2016 1.32% 2.59%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $16.70 $16.49 7,310 06/30/2016 1.26% 4.89%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.11 $18.89 3,872 09/15/2016 1.15% 2.45%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $21.49 $21.26 958,111 09/30/2016 1.10% 2.17%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $71.44 $70.80 886,502 06/30/2016 0.90% 3.51%
+ BONA 12/15/2015 Mountain Tiger International Limited (N/A) All Cash $1 billion $13.70 $13.58 228,724 06/30/2016 0.88% 3.43%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $141.86 381,292 08/15/2016 0.80% 2.10%
+ LSG 02/08/2016 Tahoe Resources Inc. (TAHO) All Stock $677 million $1.56 $1.55 838,386 04/15/2016 0.80% 16.16%
+ HMIN 12/07/2015 BTG Hotels Group (N/A) All Cash N/A $35.80 $35.52 178,616 06/30/2016 0.79% 3.06%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $24.81 2,849,222 12/15/2016 0.77% 1.07%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $23.95 $23.77 588,953 06/30/2016 0.77% 2.97%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.55 340,827 12/31/2016 0.76% 0.99%
+ POWR 02/24/2016 Southern Company (SO) All Cash $431 million $18.75 $18.61 365,921 06/30/2016 0.75% 2.92%
+ ATML 01/19/2016 Microchip Technology Inc. (MCHP) Special Conditions $3.40 billion $8.15 $8.09 1,882,427 06/30/2016 0.74% 2.88%
+ JAH 12/14/2015 Newell Rubbermaid Inc. (NWL) Cash Plus Stock $13 billion $58.05 $57.65 1,867,287 06/30/2016 0.69% 2.69%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.19 67,208 03/31/2016 0.65% 79.43%
+ CAM 08/26/2015 Schlumberger Limited (SLB) Cash Plus Stock $14.8 billion $66.41 $66.00 1,997,109 03/31/2016 0.62% 75.08%
+ TFM 03/14/2016 Apollo Global Management, LLC (APO) All Cash $1.36 billion $28.50 $28.36 1,328,665 06/30/2016 0.49% 1.92%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $27.48 669,327 03/31/2016 0.44% 53.13%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $93.52 $93.12 393,070 05/31/2016 0.42% 2.42%
+ BLT 12/10/2015 American Securities LLC and P2 Capital Partners, LLC (N/A) All Cash $855 million $10.00 $9.96 4,265,752 06/30/2016 0.40% 1.56%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $11.97 23,001 03/31/2016 0.25% 30.49%
+ NEWP 02/23/2016 MKS Instruments, Inc. (MKSI) All Cash $980 million $23.00 $22.96 175,755 06/30/2016 0.17% 0.68%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.51 1,862,781 06/30/2016 0.15% 0.56%
+ IRC 12/15/2015 real estate funds managed by DRA Advisors LLC (N/A) All Cash $2.3 billion $10.60 $10.59 1,599,685 06/30/2016 0.09% 0.37%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $20.00 626,091 03/31/2016 0.00% 0.00%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $15.94 $15.95 7,969 06/30/2016 -0.05% -0.19%
+ CKP 03/02/2016 an affiliate of CCL Industries Inc. (N/A) All Cash $443 million $10.15 $10.16 296,519 09/30/2016 -0.10% -0.19%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.81 486,751 06/30/2016 -0.22% -0.87%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.30 155,977 09/30/2016 -0.27% -0.54%
+ JMI 03/02/2016 ARMOUR Residential REIT, Inc. (ARR) Special Conditions $84.7 million $7.14 $7.16 203,429 06/30/2016 -0.28% -1.08%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $25.76 11,813 09/30/2016 -0.62% -1.22%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.60 $15.73 37,683 09/30/2016 -0.83% -1.63%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $17.82 $17.99 9,647 06/30/2016 -0.96% -3.74%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $64.05 $64.69 630,562 06/30/2016 -0.99% -3.84%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.27 $13.42 7,781 03/31/2016 -1.12% -136.17%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $30.46 1,029,928 12/31/2016 -1.51% -1.98%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $10.79 $10.96 271,859 04/30/2016 -1.59% -17.56%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.39 $14.75 147 09/30/2016 -2.47% -4.85%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $82.13 4,008,007 06/30/2016 -3.17% -12.29%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $18.53 $19.24 15,298 09/30/2016 -3.70% -7.26%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $42.18 $44.26 221,135 06/30/2016 -4.70% -18.25%
+ AFFX 01/26/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $1.3 billion $14.00 $14.93 4,331,106 06/30/2016 -6.23% -24.19%
+ VSCP 03/25/2016 BioTelemetry, Inc. (BEAT) All Cash $15.5 million $4.05 $4.48 23,141 09/30/2016 -9.60% -18.84%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.13 $5.61 67,262 03/31/2015 -26.38% 26.53%

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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