Merger Arbitrage Mondays – May 30, 2016

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May 30, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with eight new deals announced and three 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 86
Total Number of Deals Not Completed in 2016 5
Total Number of Pending Deals
Cash Deals 51
Stock Deals 19
Stock & Cash Deals 15
Special Conditions 9
Total Number of Pending Deals 94
Total Deal Size $853.44 billion

New Deals:

  1. The acquisition of Resource America (REXI) by C-III Capital Partners for $270 million or $9.78 per share in cash.
  2. The acquisition of American Capital (ACAS) by Ares Capital Corporation (ARCC) for $3.4 billion in a cash plus stock deal. Under the term of the agreement, American Capital shareholders will receive $1.470 billion in cash from Ares Capital, or $6.41 per share, plus 0.483 Ares Capital shares for each American Capital share. In a separate transaction, American Capital also announced today that it is selling   American Capital Mortgage Management to American Capital Agency (AGNC) for $562 million or $2.45 per fully diluted share.
  3. The acquisition of Xenoport (XNPT) by Arbor Pharmaceuticals for $467 million or $7.03 per share in cash.
  4. The acquisition of Mines Management (MGN) by Hecla Mining (HL) in an all stock deal. Under the terms of the agreement, each outstanding common share of Mines Management will be exchanged for 0.2218 of a common share of Hecla.
  5. The acquisition of Aixtron (AIXG) by Fujian Grand Chip Investment Fund for 670 million Euros or 6 Euros per share in cash. Note: We have used a conversion rate of 1.11 US Dollars per Euro.
  6. The acquisition of Xura (MESG) by Siris Capital Group for $643 million or $25.00 per share in cash.
  7. The acquisition of FEI Company (FEIC) by Thermo Fisher Scientific (TMO) for $4.2 billion or $107.50 per share in cash.
  8. The acquisition of Smart Technologies (SMT) by Foxconn Technology Group for $4.50 per share in cash.

Deal Updates:

  1. On May 23, 2016, Luminex Corporation (LMNX) and Nanosphere (NSPH) announced that they have entered into an amendment to the definitive agreement under which Luminex will acquire Nanosphere.  The purchase price has been increased to $1.70 per share from $1.35 per share in an all cash transaction valued at approximately $77 million. This increase was in response to an unsolicited third party offer for Nanosphere at $1.50 per share.
  2. On May 23, 2016, Polycom (PLCM), announced that it had received a revised, non-binding proposal from a private equity sponsor that was previously described as “Sponsor 1” in the Registration Statement on Form S-4 filed by Mitel Networks Corporation (MITL). Under the terms of Sponsor 1’s revised proposal, existing Polycom stockholders would receive a cash dividend of $11.00 per share and Sponsor 1 would purchase from Polycom $650 million in shares of a new convertible preferred stock of Polycom. The Polycom Board, in consultation with its legal and financial advisors, will consider the outcome of its discussions or negotiations with Sponsor 1 to determine the course of action that is in the best interest of Polycom and its stockholders.
  3. On May 25, 2016, Fuel Systems Solutions (FSYS) announced that the final exchange ratio has been determined for its proposed business combination with Westport Innovations (WPRT). Fuel Systems stockholders will receive 2.4755 Westport common shares for each share of Fuel Systems common stock owned upon completion of the Merger, assuming the Merger closes as anticipated on June 1, 2016.
  4. On May 26, 2015, Handy & Harman (HNH) announced that it has extended its tender offer to purchase all of the outstanding shares of SL Industries (SLI). Unless extended further, the tender offer will now expire on May 31, 2016.
  5. On May 26, 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 June 9, 2016.

Closed Deals:

  1. The acquisition of Airgas (ARG) by Air Liquide on May 23, 2016. It took 188 days for this deal to be completed.
  2. The acquisition of Cheviot Financial (CHEV) by MainSource Financial Group (MSFG) on May 25, 2016. It took 183 days for this deal to be completed.
  3. The acquisition of Ruckus Wireless (RKUS) by Brocade Communications Systems (BRCD) on May 27, 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 $21.48 06/30/2016 102.51% 1207.02%
CI 07/24/2015 Anthem, Inc. (ANTM) $170.74 $128.82 12/31/2016 32.54% 55.24%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $42.57 12/31/2016 31.55% 53.56%
HUM 07/03/2015 Aetna Inc. (AET) $219.85 $173.74 12/31/2016 26.54% 45.05%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.75 12/31/2016 16.13% 27.38%
HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $3.53 06/30/2016 13.31% 156.77%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.77 12/31/2016 11.88% 20.17%
KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) $1.08 $0.980 12/31/2016 10.20% 17.32%
FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) $26.80 $24.57 06/30/2016 9.08% 106.86%
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) $10.00 $9.21 08/31/2016 8.58% 33.66%

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 $21.48 7,893,852 06/30/2016 102.51% 1207.02%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $170.74 $128.82 980,754 12/31/2016 32.54% 55.24%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $42.57 2,927,517 12/31/2016 31.55% 53.56%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $219.85 $173.74 585,369 12/31/2016 26.54% 45.05%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.75 14,025,621 12/31/2016 16.13% 27.38%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.53 29,516 06/30/2016 13.31% 156.77%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.77 2,159,679 12/31/2016 11.88% 20.17%
+ KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) All Cash N/A $1.08 $0.980 604 12/31/2016 10.20% 17.32%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $24.57 206,538 06/30/2016 9.08% 106.86%
+ 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 $9.21 289,220 08/31/2016 8.58% 33.66%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $73.71 629,830 06/30/2016 7.90% 92.97%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.44 93,018 09/30/2016 7.38% 21.89%
+ 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 $37.89 1,658,997 12/31/2016 6.89% 11.69%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.02 1,194,968 09/30/2016 6.79% 20.14%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.76 $11.97 2,135 12/31/2016 6.61% 11.22%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.22 $13.43 121,755 08/15/2016 5.87% 27.84%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.08 284,317 08/15/2016 5.52% 26.16%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.315 49,937 12/31/2016 5.46% 9.27%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $107.55 503,251 03/31/2017 5.07% 6.06%
+ 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 $2.40 513,945 06/30/2016 4.58% 53.97%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.01 8,653 06/30/2016 4.12% 48.55%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $16.77 $16.19 8,469 03/31/2017 3.61% 4.31%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $80.97 $78.18 2,570,500 12/31/2016 3.57% 6.06%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $46.15 $44.56 1,025,221 12/31/2016 3.57% 6.05%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.87 $18.29 N/A 12/31/2016 3.15% 5.35%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $43.88 $42.68 2,045,363 09/30/2016 2.81% 8.34%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.59 634,241 06/30/2016 2.79% 32.88%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.19 372,686 12/31/2016 2.74% 4.65%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $39.25 $38.22 10,925 12/31/2016 2.70% 4.58%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $4.13 116,390 12/31/2016 2.42% 4.11%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $12.98 37,820 08/15/2016 2.39% 11.32%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.69 36,755 06/30/2016 2.26% 26.66%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.18 1,379,910 12/31/2016 2.04% 3.46%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.98 339,815 01/01/2017 1.82% 3.08%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.85 13,841 06/30/2016 1.76% 20.77%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.95 115,900 12/31/2016 1.72% 2.92%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $16.14 $15.88 274,991 12/31/2016 1.64% 2.78%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $23.20 $22.86 1,057,427 09/30/2016 1.48% 4.38%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $11.06 $10.90 8,185,956 09/30/2016 1.45% 4.31%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.64 167,492 11/15/2016 1.45% 3.14%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $15.51 $15.30 3,302,171 12/31/2016 1.37% 2.33%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.63 234,991 03/31/2017 1.10% 1.32%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $19.55 $19.34 13,049 06/30/2016 1.08% 12.76%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $25.61 $25.35 645,061 12/31/2016 1.04% 1.76%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.46 73,754 07/31/2016 0.90% 5.28%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $11.13 5,820 12/31/2016 0.81% 1.37%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.89 2,121,639 12/31/2016 0.79% 1.34%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $21.48 $21.32 300,554 06/30/2016 0.76% 8.98%
+ MESG 05/23/2016 Siris Capital Group, LLC (N/A) All Cash $643 million $25.00 $24.82 994,796 09/30/2016 0.73% 2.15%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $73.49 $72.99 597,307 06/30/2016 0.68% 7.98%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $34.67 1,502,157 06/30/2016 0.66% 7.81%
+ NSPH 05/16/2016 Luminex Corporation (LMNX) All Cash $58 million $1.70 $1.69 3,573,529 06/30/2016 0.59% 6.97%
+ EXAM 04/27/2016 an affiliate of Leonard Green & Partners, L.P. (N/A) All Cash $2.2 billion $35.05 $34.85 429,096 09/30/2016 0.57% 1.70%
+ UNTD 05/04/2016 B. Riley Financial, Inc. (RILY) All Cash $170 million $11.00 $10.94 47,440 09/30/2016 0.55% 1.63%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $65.64 746,274 12/31/2016 0.55% 0.93%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.67 $17.58 230,563 12/31/2016 0.51% 0.86%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.90 281,735 06/09/2016 0.50% 18.34%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $3.98 14,564 06/30/2016 0.50% 5.92%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $35.82 569,186 09/30/2016 0.50% 1.49%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $45.71 $45.53 43,068,255 06/30/2016 0.39% 4.59%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $29.90 92,627 12/31/2016 0.33% 0.57%
+ HTS 04/11/2016 Annaly Capital Management, Inc. (NLY) All Stock $1.5 billion $16.15 $16.11 2,162,486 09/30/2016 0.28% 0.82%
+ OPWR 05/02/2016 Oracle Corporation (ORCL) All Cash $532 million $10.30 $10.28 331,968 12/31/2016 0.19% 0.33%
+ SSRG 05/03/2016 an affiliate of RoundTable Healthcare Partners (N/A) All Cash $140.3 million $13.10 $13.08 26,590 09/30/2016 0.15% 0.45%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.53 1,072,608 06/30/2016 0.07% 0.86%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.96 306,569 12/31/2016 0.07% 0.11%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $11.44 $11.43 276,454 06/30/2016 0.06% 0.75%
+ SLI 04/07/2016 Handy & Harman Ltd. (HNH) All Cash $166.32 million $40.00 $40.00 1,709 05/31/2016 0.00% 0.00%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.95 198,489 03/31/2017 0.00% 0.00%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.88 $19.88 5,897 09/15/2016 -0.01% -0.04%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.26 231,634 09/30/2016 -0.05% -0.16%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.77 205,772 06/30/2016 -0.07% -0.88%
+ TXTR 04/28/2016 Oracle Corporation (ORCL) All Cash $663 million $26.00 $26.02 545,880 12/31/2016 -0.08% -0.13%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.53 2,147,590 12/31/2016 -0.12% -0.20%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $68.06 $68.15 1,373,505 06/30/2016 -0.13% -1.59%
+ XNPT 05/23/2016 Arbor Pharmaceuticals, LLC (N/A) All Cash $467 million $7.03 $7.04 1,866,331 09/30/2016 -0.14% -0.42%
+ AFOP 04/07/2016 Corning Inc. (GLW) All Cash $305 million $18.50 $18.53 60,350 06/30/2016 -0.16% -1.91%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $16.05 $16.08 4,077,746 05/31/2017 -0.17% -0.17%
+ ANAC 05/16/2016 Pfizer Inc. (PFE) All Cash $5.2 billion $99.25 $99.43 2,188,840 09/30/2016 -0.18% -0.54%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $25.67 4,625 09/30/2016 -0.27% -0.81%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $0.87 $0.87 276,893 09/30/2016 -0.32% -0.94%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $108.13 5,535,103 01/31/2017 -0.58% -0.86%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $121.78 $122.66 465,672 12/31/2016 -0.72% -1.22%
+ PLCM 04/15/2016 Mitel Networks Corporation (MITL) Cash Plus Stock $1.96 billlion $11.88 $11.97 1,002,746 09/30/2016 -0.72% -2.13%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.29 $13.41 6,619 06/30/2016 -0.92% -10.80%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.28 671,179 12/31/2016 -1.11% -1.88%
+ KKD 05/09/2016 JAB Beech Inc. (N/A) All Cash $1.35 billion $21.00 $21.39 752,274 09/30/2016 -1.82% -5.41%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.67 $16.08 24,765 09/30/2016 -2.56% -7.60%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $19.64 $20.23 33,152 09/30/2016 -2.93% -8.70%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $5.10 $5.27 6,309 06/01/2016 -3.23% -590.34%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.80 858,869 12/15/2016 -3.71% -6.80%
+ ALXA 05/10/2016 Grupo Ferrer Internacional, S.A. (N/A) Special Conditions N/A $0.90 $0.953 32,308 06/30/2016 -5.56% -65.48%
+ IOC 05/20/2016 Oil Search Limited (OSH.AX) All Stock $2.2 billion $39.49 $42.41 528,189 09/30/2016 -6.89% -20.45%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.90 $9.84 67,181 03/31/2015 -50.20% 43.01%

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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