Merger Arbitrage Mondays – April 25, 2016

Bookmark and Share

April 24, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with three new deals announced and one deal 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 65
Total Number of Deals Not Completed in 2016 3
Total Number of Pending Deals
Cash Deals 43
Stock Deals 17
Stock & Cash Deals 19
Special Conditions 6
Total Number of Pending Deals 85
Total Deal Size $789.87 billion

New Deals:

  1. The acquisition of Cvent (CVT) by affiliates of Vista Equity Partners for $1.65 billion or $36.00 per share in cash.
  2. The acquisition of Lexmark International (LXK) by a consortium of investors led by Apex Technology and PAG Asia Capital for $3.6 billion or $40.50 per share in cash.
  3. The acquisition of Hansen Medical (HNSN) by Auris Surgical Robotics for $80 million or $4.00 per share in cash.

Deal Updates:

  1. On April 19, 2016, Great Western Bancorp (GWB) and HF Financial (HFFC) announced that the merger of HF Financial into Great Western is expected to close on or about May 13, 2016.
  2. On April 22, 2016, The ADT Corporation (ADT) announced that its stockholders approved the acquisition of ADT by an affiliate of certain funds managed by affiliates of Apollo Global Management (APO) at its special meeting of stockholders held today.  Subject to the satisfaction of the remaining customary closing conditions, ADT expects the transaction to close on May 2, 2016.

Closed Deals:

  1. The acquisition of API Technologies (ATNY) by an affiliate of private equity firm J. F. Lehman & Company on April 22, 2016. It took 53 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 $19.54 06/30/2016 122.62% 678.13%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.55 $6.205 05/16/2016 53.87% 936.25%
BHI 11/16/2014 Halliburton Company (HAL) $64.74 $46.43 04/30/2016 39.44% 2878.93%
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 $7.27 12/31/2016 30.67% 44.78%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $43.36 12/31/2016 29.15% 42.56%
CI 07/24/2015 Anthem, Inc. (ANTM) $179.40 $141.82 12/31/2016 26.50% 38.69%
HUM 07/03/2015 Aetna Inc. (AET) $221.16 $175.30 12/31/2016 26.16% 38.20%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.68 12/31/2016 14.95% 21.82%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $8.04 12/31/2016 11.94% 17.43%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $35.02 12/31/2016 11.08% 16.18%

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 $19.54 10,057,391 06/30/2016 122.62% 678.13%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.55 $6.205 10,349,642 05/16/2016 53.87% 936.25%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $64.74 $46.43 4,476,870 04/30/2016 39.44% 2878.93%
+ 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 $7.27 899,271 12/31/2016 30.67% 44.78%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $43.36 3,314,933 12/31/2016 29.15% 42.56%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $179.40 $141.82 572,629 12/31/2016 26.50% 38.69%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $221.16 $175.30 560,142 12/31/2016 26.16% 38.20%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.68 19,322 12/31/2016 14.95% 21.82%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $8.04 5,447,089 12/31/2016 11.94% 17.43%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $35.02 1,737,561 12/31/2016 11.08% 16.18%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $45.44 $41.38 3,905,569 06/30/2016 9.81% 54.25%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.67 249,678 06/30/2016 8.99% 49.73%
+ KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) All Cash N/A $1.08 $1.01 65,562 12/31/2016 6.93% 10.12%
+ LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) All Cash $3.6 billion $40.50 $37.95 3,103,273 12/31/2016 6.72% 9.81%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $41.72 $39.19 3,514,220 09/30/2016 6.46% 14.92%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $45.61 $42.92 1,231,746 12/31/2016 6.27% 9.15%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $106.78 666,109 03/31/2017 5.83% 6.25%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.48 164,638 09/30/2016 5.65% 13.04%
+ 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 $2.39 773,602 06/30/2016 5.02% 27.77%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $31.99 235,677 06/30/2016 4.72% 26.10%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.77 $18.06 2,343 12/31/2016 3.93% 5.74%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $33.63 2,679,638 06/30/2016 3.78% 20.88%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.67 98,075 06/30/2016 3.54% 19.59%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.08 $13.61 256,693 08/15/2016 3.43% 11.18%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Cash Plus Stock $19 billion $77.92 $75.49 3,197,469 06/30/2016 3.22% 17.81%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $207.05 $201.45 3,242,601 06/30/2016 2.78% 15.37%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $11.37 $11.06 376,909 06/30/2016 2.78% 15.35%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.48 $2.41 47,517 04/30/2016 2.75% 200.51%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.77 $15.35 385,833 12/31/2016 2.74% 3.99%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.71 388,186 01/01/2017 2.32% 3.37%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $10.97 1,114 12/31/2016 2.28% 3.33%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $125.62 $123.01 141,105 12/31/2016 2.12% 3.10%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.26 439,876 06/30/2016 2.06% 11.37%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $35.30 1,681,473 09/30/2016 1.98% 4.58%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $18.32 $18.00 42,919 06/30/2016 1.79% 9.90%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.46 381,045 03/31/2017 1.61% 1.73%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.85 $10.70 1,941,933 09/30/2016 1.44% 3.33%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $65.08 820,714 12/31/2016 1.41% 2.06%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.99 6,454 06/30/2016 1.38% 7.62%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.11 249 08/15/2016 1.37% 4.47%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $22.63 $22.34 1,631,642 09/30/2016 1.30% 3.00%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $32.10 329,256 12/31/2016 1.25% 1.82%
+ PLCM 04/15/2016 Mitel Networks Corporation (MITL) Cash Plus Stock $1.96 billlion $12.39 $12.25 2,256,680 09/30/2016 1.18% 2.73%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.85 40,122 06/30/2016 1.08% 5.99%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.49 25,806 04/30/2016 0.93% 68.22%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.80 27,694 04/30/2016 0.81% 58.87%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $141.86 1,045,791 08/15/2016 0.80% 2.62%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $79.01 4,138,062 06/30/2016 0.66% 3.64%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $5.34 $5.31 34,172 03/31/2016 0.64% 0.00%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $72.33 $71.90 735,746 06/30/2016 0.59% 3.27%
+ 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 $41.79 2,595,481 05/02/2016 0.50% 26.20%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.70 711,054 12/31/2016 0.50% 0.73%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $20.36 $20.26 9,959 09/15/2016 0.49% 1.26%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $23.40 $23.33 964,597 06/30/2016 0.30% 1.65%
+ VSCP 03/25/2016 BioTelemetry, Inc. (BEAT) All Cash $15.5 million $4.05 $4.04 19,298 05/31/2016 0.25% 2.51%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.69 391,467 06/30/2016 0.22% 1.24%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.95 $14.92 25,666 09/30/2016 0.22% 0.50%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $16.54 $16.51 33,783 06/30/2016 0.20% 1.09%
+ CKP 03/02/2016 an affiliate of CCL Industries Inc. (N/A) All Cash $443 million $10.15 $10.13 196,435 09/30/2016 0.20% 0.46%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.98 490,747 04/28/2016 0.10% 12.18%
+ SLI 04/07/2016 Handy & Harman Ltd. (HNH) All Cash $166.32 million $40.00 $39.98 7,587 06/30/2016 0.05% 0.28%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.99 $13.98 23,404 09/30/2016 0.05% 0.11%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.25 51,197 04/30/2016 0.00% 0.00%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $19.41 $19.41 73,555 05/13/2016 -0.01% -0.10%
+ RKUS 04/04/2016 Brocade Communications Systems, Inc. (BRCD) Cash Plus Stock $1.2 billion $13.72 $13.72 1,277,754 07/31/2016 -0.02% -0.07%
+ TFM 03/14/2016 Apollo Global Management, LLC (APO) All Cash $1.36 billion $28.50 $28.51 1,110,686 06/30/2016 -0.04% -0.19%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.01 982,486 12/15/2016 -0.04% -0.06%
+ NEWP 02/23/2016 MKS Instruments, Inc. (MKSI) All Cash $980 million $23.00 $23.02 350,400 06/30/2016 -0.09% -0.48%
+ POWR 02/24/2016 Southern Company (SO) All Cash $431 million $18.75 $18.77 280,399 06/30/2016 -0.11% -0.59%
+ AFOP 04/07/2016 Corning Inc. (GLW) All Cash $305 million $18.50 $18.54 321,177 06/30/2016 -0.22% -1.19%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $30.09 94,865 12/31/2016 -0.30% -0.44%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.61 6,113,282 12/31/2016 -0.43% -0.63%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $102.29 $102.80 13,339,889 05/31/2016 -0.50% -5.04%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.36 320,160 09/30/2016 -0.60% -1.38%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.72 1,994,138 06/30/2016 -0.61% -3.39%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.26 415,072 12/15/2016 -0.70% -1.08%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $64.40 $64.95 523,141 06/30/2016 -0.84% -4.66%
+ HTS 04/11/2016 Annaly Capital Management, Inc. (NLY) All Stock $1.5 billion $15.58 $15.75 1,369,922 09/30/2016 -1.10% -2.55%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.17 $13.37 38,655 03/31/2016 -1.49% 21.74%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $46.19 $47.13 36,985 06/30/2016 -1.99% -11.01%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.57 $15.92 24,881 09/30/2016 -2.17% -5.02%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $19.34 $19.79 11,328 09/30/2016 -2.30% -5.31%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $26.48 3,161 09/30/2016 -3.32% -7.68%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $4.15 329,053 06/30/2016 -3.61% -19.99%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.89 $8.42 102,523 03/31/2015 -41.88% 39.10%

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




Subscribe to Free Newsletter


Share this Post

Post A Comment, Subscribe to SINLetter