Merger Arbitrage Mondays – April 4, 2016

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April 3, 2016 | Merger Arbitrage | | Author Asif

There was no merger activity last week as no new deals were announced. Three of the pending deals closed.

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 50
Total Number of Deals Not Completed in 2016 2
Total Number of Pending Deals
Cash Deals 45
Stock Deals 17
Stock & Cash Deals 19
Special Conditions 9
Total Number of Pending Deals 90
Total Deal Size $934.99 billion

Deal Updates:

  1. On March 28, 2016, China’s Anbang Group again upped its offer to $14 billion, or $82.75 per share to acquire Starwood Hotels & Resorts Worldwide (HOT). Later, on April 1, 2016, Starwood announced that a consortium of companies headed by Chinese insurer Anbang Insurance Group has withdrawn its proposal to acquire Starwood for $82.75 per share and does not aim to make another offer. The withdrawal of the offer by the consortium of companies, which also included J.C. Flowers & Co. and Primavera Capital Limited, was primarily due to concerns related to the market. This announcement paves the way for Marriott International (MAR) to merge with Starwood. The two hoteliers will host their individual shareholder meetings on Apr 8 to vote for the planned merger.
  2. On March 28, 2016, Origin Technologies, a newly created entity owned by a group of former Affymetrix executives for the purpose of privatizing Affymetrix (AFFXwithdrew their offer to take the company private for $17 per share after Affymetrix decided to stay in favor of an existing bid from Thermo Fisher (TMO).
  3. On March 28, 2016, Cleco Corporation (CNL) received the final approval by the Louisiana Public Service Commission, for its sale to a group of North American infrastructure investors led by Macquarie Infrastructure and Real Assets and British Columbia Investment Management Corporation. The transaction is expected to close in April.
  4. On March 30, 2016 Gannett (GCI) announced that its previously announced acquisition of Journal Media Group (JMG) will not close during the first quarter as expected because the regulatory clearance process is not yet complete.
  5. On April 1, 2016, ON Semiconductor Corporation (ON) announced that it has extended its previously announced tender offer to purchase all of the outstanding shares of common stock of Fairchild Semiconductor International (FCS) to April 14, 2016.

Closed Deals:

  1. The acquisition of Inland Real Estate (IRC) by real estate funds managed by DRA Advisors on March 30, 2016. It took 106 days for this deal to be completed.
  2. The acquisition of Affymetrix (AFFX) by Thermo Fisher Scientific (TMO) on March 31, 2016. It took 65 days for this deal to be completed.
  3. The acquisition of Cameron International Corporation (CAM) by Schlumberger Limited (SLB) on April 1, 2016. It took 219 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 $15.52 06/30/2016 180.28% 756.36%
BHI 11/16/2014 Halliburton Company (HAL) $58.30 $42.95 04/30/2016 35.74% 501.75%
CI 07/24/2015 Anthem, Inc. (ANTM) $176.48 $137.16 12/31/2016 28.67% 38.61%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.70 $7.55 05/16/2016 28.43% 247.04%
AGN 11/23/2015 Pfizer Inc. (PFE) $339.45 $268.09 12/31/2016 26.62% 35.85%
NPBC 08/17/2015 BB&T Corporation (BBT) $13.00 $10.72 04/01/2016 21.27% -2587.69%
HUM 07/03/2015 Aetna Inc. (AET) $220.23 $184.74 12/31/2016 19.21% 25.88%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.57 12/31/2016 18.49% 24.90%
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 $8.15 12/31/2016 16.56% 22.31%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $50.59 06/30/2016 10.69% 44.86%

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 $15.52 8,529,150 06/30/2016 180.28% 756.36%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $58.30 $42.95 3,027,813 04/30/2016 35.74% 501.75%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $176.48 $137.16 1,800,370 12/31/2016 28.67% 38.61%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.70 $7.55 12,684,412 05/16/2016 28.43% 247.04%
+ AGN 11/23/2015 Pfizer Inc. (PFE) All Stock $160 billion $339.45 $268.09 7,543,797 12/31/2016 26.62% 35.85%
+ NPBC 08/17/2015 BB&T Corporation (BBT) Special Conditions $1.8 billion $13.00 $10.72 11,622,538 04/01/2016 21.27% 0.00%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $220.23 $184.74 685,288 12/31/2016 19.21% 25.88%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.57 15,695 12/31/2016 18.49% 24.90%
+ 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 $8.15 983,813 12/31/2016 16.56% 22.31%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $50.59 600,739 06/30/2016 10.69% 44.86%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $8.19 11,465,827 12/31/2016 9.89% 13.32%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.68 141,985 06/30/2016 8.70% 36.48%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $35.94 1,722,484 12/31/2016 8.24% 11.09%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $43.91 $40.82 9,721,757 06/30/2016 7.56% 31.73%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.25 $13.30 365,569 08/15/2016 7.16% 19.64%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $46.05 $43.34 1,296,738 12/31/2016 6.26% 8.44%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $32.95 2,286,935 06/30/2016 5.92% 24.83%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $38.95 $36.81 2,043,215 09/30/2016 5.83% 11.88%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $106.93 874,893 03/31/2017 5.68% 5.74%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.49 61,266 09/30/2016 5.22% 10.65%
+ 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 $2.39 480,977 06/30/2016 5.02% 21.06%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.65 151,546 06/30/2016 4.11% 17.24%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $16.30 $15.72 1,397,387 12/31/2016 3.69% 4.97%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.61 $10.28 199,568 06/30/2016 3.18% 13.36%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Cash Plus Stock $19 billion $78.62 $76.20 1,702,843 09/30/2016 3.18% 6.49%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $10.88 9,644 12/31/2016 3.13% 4.21%
+ MCOX 12/22/2015 Minat Associated Co. Ltd. (N/A) All Cash N/A $4.00 $3.88 1,460 06/30/2016 3.09% 12.98%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $17.02 $16.52 22,404 06/30/2016 3.00% 12.58%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $16.65 563,448 12/15/2016 2.94% 4.21%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.32 17,886 04/30/2016 2.80% 39.25%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $210.06 $205.03 1,736,567 06/30/2016 2.45% 10.29%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.68 53,879 06/30/2016 2.34% 9.81%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.27 325,289 06/30/2016 2.02% 8.46%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.84 494,379 06/30/2016 2.01% 8.43%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.42 20,809 04/30/2016 1.89% 26.49%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.38 275,175 03/31/2017 1.86% 1.88%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.83 20,456 06/30/2016 1.82% 7.63%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.08 9,383,589 12/31/2016 1.67% 2.26%
+ 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 $41.32 4,622,991 06/30/2016 1.65% 6.90%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $125.37 $123.35 550,450 12/31/2016 1.64% 2.21%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $21.44 $21.11 1,470,368 09/30/2016 1.58% 3.22%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.09 4,245 08/15/2016 1.53% 4.19%
+ ATNY 02/29/2016 an affiliate of private equity firm J. F. Lehman & Company (N/A) All Cash $110 million $2.00 $1.97 17,817 06/30/2016 1.52% 6.39%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.55 $19.33 9,980 09/15/2016 1.16% 2.57%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.82 $14.66 9,607 09/30/2016 1.10% 2.24%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $32.15 320,064 12/31/2016 1.09% 1.47%
+ VSCP 03/25/2016 BioTelemetry, Inc. (BEAT) All Cash $15.5 million $4.05 $4.01 20,485 09/30/2016 1.00% 2.03%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.57 $13.44 33,584 09/30/2016 0.93% 1.91%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $16.15 $16.00 12,093 06/30/2016 0.92% 3.87%
+ BONA 12/15/2015 Mountain Tiger International Limited (N/A) All Cash $1 billion $13.70 $13.58 146,654 06/30/2016 0.88% 3.71%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $9.76 $9.68 1,345,015 09/30/2016 0.82% 1.68%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $65.51 889,915 12/31/2016 0.75% 1.01%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $142.00 637,719 08/15/2016 0.70% 1.93%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $73.47 $73.05 884,250 06/30/2016 0.57% 2.38%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $24.86 1,820,488 12/15/2016 0.56% 0.81%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.21 197,332 03/31/2016 0.43% 0.00%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $23.45 $23.35 161,294 06/30/2016 0.42% 1.75%
+ LF 02/05/2016 VTech Holdings Limited (N/A) All Cash $72 million $1.00 $0.996 287,052 06/30/2016 0.40% 1.68%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $96.85 $96.46 196,498 05/31/2016 0.40% 2.56%
+ ATML 01/19/2016 Microchip Technology Inc. (MCHP) Special Conditions $3.40 billion $8.15 $8.12 5,887,036 06/30/2016 0.37% 1.55%
+ BLT 12/10/2015 American Securities LLC and P2 Capital Partners, LLC (N/A) All Cash $855 million $10.00 $9.97 198,928 06/30/2016 0.30% 1.26%
+ YOKU 11/06/2015 Alibaba Group Holding Limited (BABA) All Cash $5.37 billion $27.60 $27.52 1,148,218 04/15/2016 0.29% 9.65%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.31 $13.27 14,455 03/31/2016 0.29% 0.00%
+ POWR 02/24/2016 Southern Company (SO) All Cash $431 million $18.75 $18.70 768,118 06/30/2016 0.27% 1.12%
+ HMIN 12/07/2015 BTG Hotels Group (N/A) All Cash N/A $35.80 $35.71 302,041 06/30/2016 0.25% 1.06%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $79.38 11,881,061 06/30/2016 0.19% 0.79%
+ JAH 12/14/2015 Newell Rubbermaid Inc. (NWL) Cash Plus Stock $13 billion $60.26 $60.15 5,956,300 06/30/2016 0.18% 0.74%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.90 375,702 12/31/2016 0.17% 0.22%
+ JMG 10/07/2015 Gannett Co., Inc. (GCI) All Cash $280 million $12.00 $11.98 97,877 04/30/2016 0.17% 2.34%
+ 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 $55.28 1,031,154 04/30/2016 0.16% 2.29%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $20.00 605,543 04/14/2016 0.00% 0.00%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $30.01 572,828 12/31/2016 -0.03% -0.04%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.56 2,681,513 06/30/2016 -0.04% -0.15%
+ NEWP 02/23/2016 MKS Instruments, Inc. (MKSI) All Cash $980 million $23.00 $23.01 322,707 06/30/2016 -0.04% -0.18%
+ CKP 03/02/2016 an affiliate of CCL Industries Inc. (N/A) All Cash $443 million $10.15 $10.16 387,328 09/30/2016 -0.10% -0.20%
+ TFM 03/14/2016 Apollo Global Management, LLC (APO) All Cash $1.36 billion $28.50 $28.53 1,535,825 06/30/2016 -0.11% -0.44%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $64.57 $64.86 1,387,359 06/30/2016 -0.45% -1.88%
+ JMI 03/02/2016 ARMOUR Residential REIT, Inc. (ARR) Special Conditions $84.7 million $7.14 $7.18 173,980 06/30/2016 -0.56% -2.34%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.37 202,884 09/30/2016 -0.65% -1.33%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.93 547,680 06/30/2016 -0.67% -2.80%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.47 $15.71 14,424 09/30/2016 -1.51% -3.07%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $19.10 $19.47 29,309 09/30/2016 -1.89% -3.85%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $18.06 $18.44 60,663 06/30/2016 -2.04% -8.57%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $26.32 12,294 09/30/2016 -2.74% -5.58%
+ RNF 08/10/2015 CVR Partners, LP (UAN) Cash Plus Stock $840 million $10.97 $11.41 100 04/30/2016 -3.83% -53.74%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $43.46 $45.22 18,604 06/30/2016 -3.90% -16.35%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.23 $2.32 39,752 04/30/2016 -4.03% -56.58%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $4.62 $5.55 40,416 03/31/2016 -16.76% 1529.17%
+ LSG 02/08/2016 Tahoe Resources Inc. (TAHO) All Stock $677 million $1.47 $1.90 915,354 04/15/2016 -22.56% -748.51%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.38 $5.80 56,122 03/31/2015 -24.56% 24.22%

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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