Merger Arbitrage Mondays – May 9, 2016

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May 8, 2016 | Merger Arbitrage | | Author Asif

Merger activity decreased last week with six new deals announced and six 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 73
Total Number of Deals Not Completed in 2016 4
Total Number of Pending Deals
Cash Deals 47
Stock Deals 19
Stock & Cash Deals 18
Special Conditions 7
Total Number of Pending Deals 91
Total Deal Size $835.05 billion

New Deals:

  1. The acquisition of OPOWER (OPWR) by Oracle Corporation (ORCL) for $532 million or $10.30 per share in cash.
  2. A merger of equals between IMS Health Holdings (IMS) and Quintiles Transnational Holdings (Q) for a combined value of $17.6 billion in an all stock deal. Under the terms of the agreement, IMS Health shareholders will receive a fixed exchange ratio of 0.384 shares of Quintiles common stock for each share of IMS Health common stock.
  3. The acquisition of Your Community Bankshares (YCB) by WesBanco (WSBC) for $221 million in a cash plus stock deal.
  4. The acquisition of Symmetry Surgical (SSRG) by an affiliate of RoundTable Healthcare Partners for $140.3 million or $13.10 per share in cash.
  5. The acquisition of United Online (UNTD) by B. Riley Financial (RILY) for $170 million or $11.00 per share in cash.
  6. The acquisition of Lake Sunapee Bank Group (LSBG) by Bar Harbor Bankshares (BHB) for $143 million in an all stock deal. Under the terms of the agreement, each outstanding share of Lake Sunapee common stock will be exchanged for 0.4970 shares of Bar Harbor common stock.

Deal Updates:

  1. On May 2, 2016, Apollo Education Group (APOL) announced that its shareholders have approved the merger agreement for the proposed acquisition by a consortium of investors, including The Vistria Group, funds affiliated with Apollo Global Management and the Najafi Companies.
  2. On May 3, 2016, The U.S. Federal Communications Commission said it had approved European telecoms group Altice NV’s acquisition of U.S. cable company Cablevision Systems Corp (CVC) in a $17.7 billion deal that includes assumption of debt.
  3. On May 5, 2016, Energy Transfer Equity (ETE) Chief Executive Kelcy Warren delivered the most public and concrete renunciation of his once-coveted deal for rival Williams (WMB). Warren said, “We can’t close this deal, Absent a substantial restructuring of this transaction, which Energy Transfer has been very willing and actually desiring to do, absent that, we don’t have a deal.”
  4. On May 6, 2016, The Federal Communications Commission voted to approve Charter Communications’ (CHTR) $79 billion acquisition of Time Warner Cable (TWC) and Bright House Networks.

Closed Deals:

  1. The acquisition of Newport (NEWP) by MKS Instruments (MKSI) on April 29, 2016. It took 66 days for this deal to be completed.
  2. The acquisition of Anchor BanCorp Wisconsin (ABCW) by Old National Bancorp (ONB) on May 2, 2016. It took 111 days for this deal to be completed.
  3. The acquisition of The ADT Corporation (ADT) by an Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management on May 2, 2016. It took 76 days for this deal to be completed.
  4. The acquisition of Cape Bancorp (CBNJ) by OceanFirst Financial Corp (OCFC) on May 2, 2016. It took 118 days for this deal to be completed.
  5. The acquisition of Pulaski Financial Corporation (PULB) by First Busey Corporation (BUSE) on May 2, 2016. It took 151 days for this deal to be completed.
  6. The acquisition of Crown Media Holdings (CRWN) by Hallmark Cards on May 2, 2016. It took 55 days for this deal to be completed. This deal was announced and closed in a short period of time because of the amount of stock already owned by Hallmark.

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 $19.70 06/30/2016 120.81% 848.01%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.49 $6.14 05/16/2016 54.64% 2849.08%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $39.47 12/31/2016 41.88% 64.77%
CI 07/24/2015 Anthem, Inc. (ANTM) $174.11 $130.85 12/31/2016 33.06% 51.13%
HUM 07/03/2015 Aetna Inc. (AET) $219.49 $170.68 12/31/2016 28.60% 44.23%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.30 12/31/2016 13.41% 20.74%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.95 12/31/2016 13.21% 20.43%
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 $8.95 12/31/2016 11.73% 18.14%
HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $3.59 06/30/2016 11.42% 80.16%
TIVO 04/29/2016 Rovi Corporation (ROVI) $10.70 $9.64 09/30/2016 11.00% 27.87%

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 $19.70 9,335,791 06/30/2016 120.81% 848.01%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.49 $6.14 10,165,835 05/16/2016 54.64% 2849.08%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $39.47 874,470 12/31/2016 41.88% 64.77%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $174.11 $130.85 2,575,347 12/31/2016 33.06% 51.13%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $219.49 $170.68 1,275,205 12/31/2016 28.60% 44.23%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.30 1,140,565 12/31/2016 13.41% 20.74%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.95 12,801,116 12/31/2016 13.21% 20.43%
+ 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 $8.95 2,552,372 12/31/2016 11.73% 18.14%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.59 79,544 06/30/2016 11.42% 80.16%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $9.64 1,702,670 09/30/2016 11.00% 27.87%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.82 84,039 12/31/2016 10.73% 16.60%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $22.96 37,424 06/30/2016 8.89% 62.37%
+ KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) All Cash N/A $1.08 $1.00 188,960 12/31/2016 8.00% 12.37%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $40.59 $37.66 2,524,389 09/30/2016 7.77% 19.69%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.031 31,717 06/30/2016 7.23% 50.72%
+ 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 $38.06 1,722,688 12/31/2016 6.41% 9.92%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $43.76 $41.17 9,814,255 06/30/2016 6.28% 44.11%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $79.81 $75.10 3,589,843 12/31/2016 6.28% 9.71%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.47 $11.75 88,409 12/31/2016 6.12% 9.46%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $106.86 497,938 03/31/2017 5.75% 6.43%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.60 220,177 06/30/2016 5.56% 39.00%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.49 254,371 09/30/2016 5.22% 13.23%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $46.09 $44.16 807,018 12/31/2016 4.36% 6.74%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.33 $17.64 58 12/31/2016 3.93% 6.08%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.17 $13.64 125,159 08/15/2016 3.91% 14.55%
+ 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 1,087,516 06/30/2016 3.72% 26.10%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.29 305,855 04/30/2016 3.70% 0.00%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $16.13 $15.56 158,868 03/31/2017 3.68% 4.12%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.51 519,868 06/30/2016 3.63% 25.46%
+ PLCM 04/15/2016 Mitel Networks Corporation (MITL) Cash Plus Stock $1.96 billlion $11.74 $11.44 740,780 09/30/2016 2.62% 6.64%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.01 1,844,025 12/31/2016 2.47% 3.83%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.37 $37.45 29,626 12/31/2016 2.47% 3.82%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.19 270,806 06/30/2016 2.33% 16.35%
+ UNTD 05/04/2016 B. Riley Financial, Inc. (RILY) All Cash $170 million $11.00 $10.75 497,516 09/30/2016 2.33% 5.89%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.74 785,336 01/01/2017 2.26% 3.48%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $25.33 $24.77 2,749,808 12/31/2016 2.26% 3.49%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $10.98 18,637 12/31/2016 2.19% 3.38%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.63 $10.42 249,472 06/30/2016 2.00% 14.04%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.91 401,480 06/30/2016 1.79% 12.58%
+ SSRG 05/03/2016 an affiliate of RoundTable Healthcare Partners (N/A) All Cash $140.3 million $13.10 $12.87 265,325 09/30/2016 1.79% 4.53%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.08 $14.82 489,652 12/31/2016 1.75% 2.71%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.95 105,968 12/31/2016 1.72% 2.66%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.38 $10.21 4,841,644 09/30/2016 1.65% 4.18%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $21.55 $21.20 1,084,934 06/30/2016 1.64% 11.53%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.49 $17.25 1,770,642 12/31/2016 1.39% 2.15%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.11 5,203 08/15/2016 1.37% 5.11%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Cash Plus Stock $19 billion $76.40 $75.42 4,451,558 06/30/2016 1.29% 9.09%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.58 200,746 03/31/2017 1.25% 1.40%
+ HTS 04/11/2016 Annaly Capital Management, Inc. (NLY) All Stock $1.5 billion $16.52 $16.33 744,212 09/30/2016 1.16% 2.95%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $34.50 4,851,662 06/30/2016 1.16% 8.14%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $20.01 $19.79 24,627 05/13/2016 1.10% 100.06%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $35.65 512,881 09/30/2016 0.98% 2.49%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $215.17 $213.17 2,781,344 06/30/2016 0.94% 6.58%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $21.99 $21.80 658,797 09/30/2016 0.89% 2.25%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $18.20 $18.05 29,875 06/30/2016 0.82% 5.78%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $37.21 29,228 06/30/2016 0.78% 5.47%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.02 $18.88 6,259 09/15/2016 0.73% 2.06%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.88 439,771 05/12/2016 0.60% 73.44%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.37 6,991,448 12/31/2016 0.51% 0.79%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $122.70 $122.20 297,148 12/31/2016 0.41% 0.64%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $142.60 344,649 08/15/2016 0.28% 1.04%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $29.92 79,321 12/31/2016 0.27% 0.41%
+ VSCP 03/25/2016 BioTelemetry, Inc. (BEAT) All Cash $15.5 million $4.05 $4.04 42,700 05/31/2016 0.25% 4.11%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $69.47 $69.36 777,237 06/30/2016 0.16% 1.11%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.91 519,267 12/31/2016 0.15% 0.23%
+ TXTR 04/28/2016 Oracle Corporation (ORCL) All Cash $663 million $26.00 $25.97 1,662,868 12/31/2016 0.12% 0.18%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.72 1,094,709 06/30/2016 0.11% 0.79%
+ RKUS 04/04/2016 Brocade Communications Systems, Inc. (BRCD) Cash Plus Stock $1.2 billion $12.51 $12.50 2,298,585 07/31/2016 0.08% 0.35%
+ POWR 02/24/2016 Southern Company (SO) All Cash $431 million $18.75 $18.76 352,896 06/30/2016 -0.05% -0.37%
+ CKP 03/02/2016 an affiliate of CCL Industries Inc. (N/A) All Cash $443 million $10.15 $10.16 435,048 09/30/2016 -0.10% -0.25%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.26 349,117 06/28/2016 -0.11% -0.79%
+ AFOP 04/07/2016 Corning Inc. (GLW) All Cash $305 million $18.50 $18.52 359,951 06/30/2016 -0.11% -0.76%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.03 1,581,424 12/15/2016 -0.12% -0.20%
+ SLI 04/07/2016 Handy & Harman Ltd. (HNH) All Cash $166.32 million $40.00 $40.05 17,771 05/20/2016 -0.12% -4.14%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $66.14 643,830 12/31/2016 -0.21% -0.33%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $4.01 58,428 06/30/2016 -0.25% -1.75%
+ OPWR 05/02/2016 Oracle Corporation (ORCL) All Cash $532 million $10.30 $10.33 1,164,299 12/31/2016 -0.29% -0.45%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.31 91,796 09/30/2016 -0.33% -0.83%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $68.27 $68.59 585,883 06/30/2016 -0.47% -3.32%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $5.07 $5.10 28,056 06/30/2016 -0.65% -4.54%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.74 2,005,343 06/30/2016 -0.68% -4.81%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.08 $2.10 90,528 05/31/2016 -0.91% -15.14%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.74 $12.87 11,299 06/30/2016 -1.04% -7.28%
+ EXAM 04/27/2016 an affiliate of Leonard Green & Partners, L.P. (N/A) All Cash $2.2 billion $35.05 $35.42 890,691 09/30/2016 -1.04% -2.65%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.58 $14.77 5,929 09/30/2016 -1.29% -3.28%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $81.34 2,035,013 06/30/2016 -2.23% -15.62%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.62 1,286,586 12/15/2016 -2.72% -4.52%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $18.94 $19.56 6,462 09/30/2016 -3.19% -8.08%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.29 $15.82 800 09/30/2016 -3.34% -8.48%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $26.73 5,697 09/30/2016 -4.23% -10.72%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.50 $8.40 46,717 03/31/2015 -46.48% 41.89%

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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