Merger Arbitrage Mondays – May 23, 2016

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May 22, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with five new deals announced and two deals 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 83
Total Number of Deals Not Completed in 2016 5
Total Number of Pending Deals
Cash Deals 46
Stock Deals 19
Stock & Cash Deals 15
Special Conditions 9
Total Number of Pending Deals 89
Total Deal Size $843.71 billion

New Deals:

  1. The acquisition of Nanosphere (NSPH) by Luminex Corporation (LMNX) for $58 million or $1.35 per share in cash.
  2. The acquisition of Memorial Resource Development (MRD) by Range Resources Corporation (RRC) for $4.4 billion in an all stock deal. Under the terms of the agreement, MRD shareholders will receive 0.375 shares of Range common stock for each share of MRD common stock held.
  3. The acquisition of Anacor Pharmaceuticals (ANAC) by Pfizer (PFE) for $5.2 billion or $99.25 per share in cash.
  4. The acquisition of inContact (SAAS) by NICE Systems (NICE) for $940 million or $14.00 per share in cash.
  5. The acquisition of InterOil Corporation (IOC) by Oil Search Limited (OSH.AX) for $2.2 billion. Under the terms of the agreement, InterOil shareholders will receive 8.05 ordinary shares of Oil Search for each InterOil share (the Share Consideration); or InterOil shareholders may elect to receive a cash alternative, up to a total of US$770 million (subject to a pro rata scaleback) (the Cash Alternative); and All InterOil shareholders will also receive a CVR which will deliver an additional cash payment of approximately US$6.05 per share for each tcfe gross resource certification of the Elk-Antelope fields above 6.2 tcfe.

Deal Updates:

  1. On May 15, 2016, Energy Transfer Equity (ETE) said that a lawsuit filed by Williams Companies (WMB) to prevent ETE from terminating its once-coveted deal for Williams will lead to a delay in the buyout.
  2. On May 16, 2016, Pier Antonio Costamagna, a co-founder of Fuel Systems Solutions (FSYS) issued a statement outlining significant concerns with the proposed merger between FSS and Westport Innovations (WPRT) following disclosure of Westport’s reported financial results for the quarter ended March 31, 2016.
  3. On May 16, 2016, Williams Companies (WMB) has filed a suit against Energy Transfer Equity (ETE) to ensure that their merger remains on track. The company took the legal step when the latter expressed concerns over the merger citing that the deal had not secured the necessary legal opinion to make the transaction tax-free to shareholders.
  4. May 17, 2016: Based on information from the National Holdings Corporation (NHLD) second quarter earnings conference call, we are adjusting the closing date for the deal to August 15, 2016.
  5. On May 17, 2016, BBCN Bancorp (BBCN) and Wilshire Bancorp (WIBC) jointly announced the receipt of approvals from all regulatory agencies required for closing the merger of equals between BBCN and Wilshire.
  6. On May 20, 2016, Pinnacle Financial Partners (PNFP) announced that it has received approvals of its applications to merge with Avenue Financial Holdings (AVNU) from both the Tennessee Department of Financial Institutions and the Federal Deposit Insurance Corporation. The TDFI and FDIC have also approved the proposed merger of Pinnacle Bank and Avenue Bank. With receipt of these approvals, all regulatory approvals required for consummation of the proposed mergers have been received.

Closed Deals:

  1. The acquisition of HF Financial (HFFC) by Great Western Bancorp (GWB) on May 16, 2016. It took 168 days for this deal to be completed.
  2. The acquisition of Time Warner Cable (TWC) by Charter Communications (CHTR) on May 18, 2016. It took 358 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 $22.15 06/30/2016 96.39% 925.83%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $40.67 12/31/2016 37.69% 61.97%
CI 07/24/2015 Anthem, Inc. (ANTM) $173.33 $131.28 12/31/2016 32.03% 52.66%
HUM 07/03/2015 Aetna Inc. (AET) $217.66 $169.60 12/31/2016 28.34% 46.59%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.66 12/31/2016 17.49% 28.76%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $33.79 12/31/2016 15.12% 24.86%
HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $3.57 06/30/2016 12.04% 115.69%
WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) $0.95 $0.85 03/31/2017 11.76% 13.76%
KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) $1.08 $0.97 12/31/2016 11.34% 18.64%
HOT 11/16/2015 Marriott International, Inc. (MAR) $79.53 $72.68 06/30/2016 9.42% 90.53%

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 $22.15 12,608,432 06/30/2016 96.39% 925.83%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $40.67 637,140 12/31/2016 37.69% 61.97%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $173.33 $131.28 1,976,583 12/31/2016 32.03% 52.66%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $217.66 $169.60 1,410,216 12/31/2016 28.34% 46.59%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.66 36,918,995 12/31/2016 17.49% 28.76%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $33.79 2,176,601 12/31/2016 15.12% 24.86%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.57 96,815 06/30/2016 12.04% 115.69%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.85 268,169 03/31/2017 11.76% 13.76%
+ KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) All Cash N/A $1.08 $0.97 700 12/31/2016 11.34% 18.64%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $72.68 1,616,370 06/30/2016 9.42% 90.53%
+ 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 $10.00 $9.22 748,919 08/31/2016 8.46% 30.88%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $23.07 23,612 06/30/2016 8.37% 80.36%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $24.85 114,992 06/30/2016 7.85% 75.37%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.72 $11.80 562 12/31/2016 7.81% 12.84%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $9.93 981,376 09/30/2016 7.75% 21.77%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.45 34,914 09/30/2016 6.94% 19.48%
+ 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 1,255,176 12/31/2016 6.72% 11.05%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.10 $13.23 79,060 08/15/2016 6.59% 28.64%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.05 479 08/15/2016 6.56% 28.49%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $106.87 868,063 03/31/2017 5.74% 6.71%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.67 $17.70 224 12/31/2016 5.49% 9.03%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.16 276,690 12/31/2016 4.17% 6.85%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $42.72 $41.13 4,119,138 09/30/2016 3.85% 10.82%
+ 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 $2.42 985,554 06/30/2016 3.72% 35.72%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.30 617,532 06/30/2016 3.72% 35.69%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $79.49 $76.78 4,092,175 12/31/2016 3.53% 5.81%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $15.86 $15.33 8,396 03/31/2017 3.45% 4.04%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $45.76 $44.26 1,015,974 12/31/2016 3.38% 5.56%
+ NSPH 05/16/2016 Luminex Corporation (LMNX) All Cash $58 million $1.35 $1.31 4,707,264 06/30/2016 3.05% 29.33%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $4.11 292,241 12/31/2016 2.92% 4.80%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.52 352,693 01/01/2017 2.67% 4.36%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $45.52 $44.43 13,578,763 06/30/2016 2.45% 23.58%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.61 $37.69 52,020 12/31/2016 2.43% 4.00%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.07 1,556,084 12/31/2016 2.32% 3.82%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.69 62,430 06/30/2016 2.26% 21.75%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.68 $15.39 488,694 12/31/2016 1.88% 3.10%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.07 156 08/15/2016 1.68% 7.31%
+ HTS 04/11/2016 Annaly Capital Management, Inc. (NLY) All Stock $1.5 billion $16.63 $16.38 1,891,145 09/30/2016 1.51% 4.23%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.50 159,293 03/31/2017 1.49% 1.75%
+ UNTD 05/04/2016 B. Riley Financial, Inc. (RILY) All Cash $170 million $11.00 $10.85 120,713 09/30/2016 1.38% 3.88%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $37.01 8,501 06/30/2016 1.32% 12.72%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $32.08 151,071 12/31/2016 1.31% 2.15%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $121.92 $120.56 173,299 12/31/2016 1.13% 1.86%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.79 $10.67 1,870,870 09/30/2016 1.09% 3.06%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $70.34 $69.59 999,606 06/30/2016 1.08% 10.35%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.86 4,835,473 12/31/2016 1.01% 1.66%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $11.11 3,361 12/31/2016 0.99% 1.63%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $21.94 $21.74 153,387 06/30/2016 0.90% 8.68%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $34.64 5,754,237 06/30/2016 0.75% 7.21%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $15.14 $15.03 3,492,945 12/31/2016 0.75% 1.23%
+ EXAM 04/27/2016 an affiliate of Leonard Green & Partners, L.P. (N/A) All Cash $2.2 billion $35.05 $34.79 2,539,787 09/30/2016 0.75% 2.10%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.16 $17.04 854,389 12/31/2016 0.73% 1.20%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $35.75 542,536 09/30/2016 0.70% 1.96%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $15.11 $15.01 4,962 09/30/2016 0.68% 1.90%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $29.80 224,913 12/31/2016 0.67% 1.10%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.61 $19.49 7,028 09/15/2016 0.64% 2.03%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $22.60 $22.46 1,486,271 09/30/2016 0.60% 1.70%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $65.63 747,231 12/31/2016 0.56% 0.93%
+ SSRG 05/03/2016 an affiliate of RoundTable Healthcare Partners (N/A) All Cash $140.3 million $13.10 $13.03 188,429 09/30/2016 0.54% 1.51%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.90 565,157 05/26/2016 0.50% 61.14%
+ RKUS 04/04/2016 Brocade Communications Systems, Inc. (BRCD) Cash Plus Stock $1.2 billion $12.43 $12.37 2,509,398 07/31/2016 0.46% 2.46%
+ PLCM 04/15/2016 Mitel Networks Corporation (MITL) Cash Plus Stock $1.96 billlion $11.11 $11.07 934,111 09/30/2016 0.37% 1.04%
+ OPWR 05/02/2016 Oracle Corporation (ORCL) All Cash $532 million $10.30 $10.27 779,729 12/31/2016 0.29% 0.48%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.86 295,470 12/31/2016 0.23% 0.38%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $18.70 $18.66 12,169 06/30/2016 0.22% 2.16%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.49 2,420,563 06/30/2016 0.22% 2.10%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $25.56 $25.50 5,547,027 12/31/2016 0.22% 0.36%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.70 636,925 06/30/2016 0.19% 1.80%
+ SLI 04/07/2016 Handy & Harman Ltd. (HNH) All Cash $166.32 million $40.00 $39.94 1,335 05/20/2016 0.15% 0.00%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $142.96 6,627,583 08/15/2016 0.03% 0.12%
+ AFOP 04/07/2016 Corning Inc. (GLW) All Cash $305 million $18.50 $18.50 202,950 06/30/2016 0.00% 0.00%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $4.00 39,073 06/30/2016 0.00% 0.00%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $11.03 $11.03 349,072 06/30/2016 -0.01% -0.06%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.26 222,738 09/30/2016 -0.05% -0.15%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $70.18 $70.23 1,025,108 06/30/2016 -0.08% -0.73%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.52 5,275,231 12/31/2016 -0.08% -0.13%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.19 478,500 12/15/2016 -0.29% -0.52%
+ ANAC 05/16/2016 Pfizer Inc. (PFE) All Cash $5.2 billion $99.25 $99.66 3,377,135 09/30/2016 -0.41% -1.16%
+ TXTR 04/28/2016 Oracle Corporation (ORCL) All Cash $663 million $26.00 $26.13 193,649 12/31/2016 -0.50% -0.82%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.19 893,986 12/31/2016 -0.75% -1.24%
+ KKD 05/09/2016 JAB Beech Inc. (N/A) All Cash $1.35 billion $21.00 $21.16 568,608 09/30/2016 -0.76% -2.12%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.86 $13.02 13,859 06/30/2016 -1.22% -11.71%
+ ALXA 05/10/2016 Grupo Ferrer Internacional, S.A. (N/A) Special Conditions N/A $0.90 $0.92 310,852 06/30/2016 -2.17% -20.88%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $19.07 $19.58 23,258 09/30/2016 -2.59% -7.27%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $26.43 N/A 09/30/2016 -3.14% -8.82%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.11 $15.81 570 09/30/2016 -4.44% -12.46%
+ IOC 05/20/2016 Oil Search Limited (OSH.AX) All Stock $2.2 billion $39.85 $43.57 5,938,931 09/30/2016 -8.54% -23.97%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $4.09 $5.16 7,090 06/30/2016 -20.78% -199.61%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.55 $8.75 69,539 03/31/2015 -48.02% 41.83%

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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