Merger Arbitrage Mondays – June 13, 2016

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June 12, 2016 | Merger Arbitrage | | Author Asif

Merger activity decreased significantly last week with two 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 91
Total Number of Deals Not Completed in 2016 5
Total Number of Pending Deals
Cash Deals 60
Stock Deals 18
Stock & Cash Deals 14
Special Conditions 11
Total Number of Pending Deals 103
Total Deal Size $886.22 billion

New Deals:

  1. The acquisition of LDR Holding Corporation (LDRH) by Zimmer Biomet Holdings (ZBH) for $1 billion or $37.00 per share in cash.
  2. The acquisition of Axiall Corporation (AXLL) by Westlake Chemical Corporation (WLK) for $3.8 billion or $33.00 per share in cash.

Deal Updates:

  1. On June 8, 2016, Polycom (PLCM), which agreed to be acquired by Mitel Networks (MITL) said that it had received a revised offer from a private equity firm identified only as “Sponsor 1″ to take it private for a new offer of $12.25 per share.
  2. On June 9, 2016, The U.S. Federal Trade Commission approved the merger of pipeline companies Energy Transfer Equity (ETE) and Williams Companies (WMB). The commission said it would approve the merger on condition that the companies agree to sell Williams’ 50 percent stake in an interstate natural gas pipeline that serves Florida, particularly its electric power companies.
  3. On June 10, 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 23, 2016.

Closed Deals:

  1. The acquisition of Waste Connections (WCN) by Progressive Waste Solutions (BIN) on June 1, 2016. It took 134 days for this deal to be completed.
  2. The acquisition of Alliance Fiber Optic Products (AFOP) by Corning (GLW) on June 6, 2016. It took 60 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 $22.04 06/30/2016 97.37% 2090.56%
CI 07/24/2015 Anthem, Inc. (ANTM) $171.16 $128.08 12/31/2016 33.63% 61.08%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $42.78 12/31/2016 30.90% 56.12%
HUM 07/03/2015 Aetna Inc. (AET) $225.94 $186.76 12/31/2016 20.98% 38.09%
FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) $26.80 $22.63 06/30/2016 18.43% 395.64%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.83 12/31/2016 14.94% 27.13%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $35.21 12/31/2016 10.48% 19.03%
AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) $6.66 $6.06 12/31/2016 9.90% 17.98%
KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) $1.08 $0.99 12/31/2016 9.09% 16.51%
TIVO 04/29/2016 Rovi Corporation (ROVI) $10.70 $9.82 09/30/2016 8.96% 30.01%

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 $22.04 8,063,423 06/30/2016 97.37% 2090.56%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $171.16 $128.08 1,103,534 12/31/2016 33.63% 61.08%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $42.78 323,096 12/31/2016 30.90% 56.12%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $225.94 $186.76 323,650 12/31/2016 20.98% 38.09%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $22.63 199,860 06/30/2016 18.43% 395.64%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.83 51,708,965 12/31/2016 14.94% 27.13%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $35.21 703,166 12/31/2016 10.48% 19.03%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.06 8,312 12/31/2016 9.90% 17.98%
+ KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) All Cash N/A $1.08 $0.99 6,250 12/31/2016 9.09% 16.51%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $9.82 3,532,114 09/30/2016 8.96% 30.01%
+ 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 $9.19 448,403 08/31/2016 8.81% 40.72%
+ DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.20 566,700 12/31/2016 8.06% 14.64%
+ 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 $37.56 525,257 12/31/2016 7.83% 14.21%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $73.89 1,441,382 06/30/2016 7.63% 163.88%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.45 72,855 09/30/2016 6.94% 23.24%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.05 30,169 08/15/2016 6.56% 37.99%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $56.37 2,091,210 03/31/2017 6.44% 8.08%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $23.57 11,357 06/30/2016 6.07% 130.26%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.41 $13.60 176,256 08/15/2016 5.93% 34.35%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.785 833,549 06/30/2016 5.68% 121.96%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.90 120,933 03/31/2017 5.56% 6.97%
+ FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $4.81 17,481 09/30/2016 4.99% 16.71%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.52 $11.95 1 12/31/2016 4.80% 8.71%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $107.93 837,525 03/31/2017 4.70% 5.89%
+ 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 $2.41 561,260 06/30/2016 4.15% 89.09%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.17 143,221 12/31/2016 3.69% 6.69%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $80.19 $77.35 1,604,086 12/31/2016 3.67% 6.66%
+ PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.90 N/A 12/31/2016 3.49% 6.33%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $47.19 $45.74 356,882 12/31/2016 3.18% 5.77%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.70 21,926 06/30/2016 2.18% 46.80%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.16 902,811 12/31/2016 2.09% 3.80%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.84 150,353 12/31/2016 2.07% 3.76%
+ TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.74 1,327,266 12/31/2016 1.89% 3.44%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $56.02 338,693 01/01/2017 1.75% 3.16%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $44.24 $43.49 2,474,646 09/30/2016 1.72% 5.76%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $16.20 $15.93 1,774,150 12/31/2016 1.72% 3.12%
+ QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $30.00 7,610,399 09/30/2016 1.67% 5.58%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.88 $15.62 234,211 12/31/2016 1.66% 3.02%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.00 $0.98 102,747 09/30/2016 1.62% 5.43%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.79 17,006 06/30/2016 1.52% 32.70%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.21 $37.64 13,487 12/31/2016 1.52% 2.75%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.11 27,284 08/15/2016 1.37% 7.95%
+ AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.56 38,134,692 12/31/2016 1.35% 2.45%
+ MESG 05/23/2016 Siris Capital Group, LLC (N/A) All Cash $643 million $25.00 $24.68 698,248 09/30/2016 1.30% 4.34%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $22.11 $21.85 1,474,464 09/30/2016 1.21% 4.05%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $4.18 116,466 12/31/2016 1.20% 2.17%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.45 15,649 07/31/2016 1.12% 8.54%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.85 843,939 12/31/2016 1.08% 1.97%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.63 $10.52 3,812,176 09/30/2016 1.05% 3.50%
+ HTS 04/11/2016 Annaly Capital Management, Inc. (NLY) All Stock $1.5 billion $16.44 $16.28 1,722,434 09/30/2016 1.01% 3.37%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.71 122,815 03/31/2017 0.86% 1.08%
+ RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $25.36 $25.16 453,394 09/30/2016 0.79% 2.66%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $35.73 800,914 09/30/2016 0.76% 2.53%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $3.97 10,058 06/30/2016 0.76% 16.22%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $73.19 $72.67 702,419 06/30/2016 0.71% 15.22%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.86 376,441 06/23/2016 0.70% 25.73%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.75 625,967 01/31/2017 0.70% 1.11%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $17.43 $17.31 15,551 03/31/2017 0.69% 0.87%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $34.68 1,593,940 06/30/2016 0.63% 13.62%
+ EXAM 04/27/2016 an affiliate of Leonard Green & Partners, L.P. (N/A) All Cash $2.2 billion $35.05 $34.84 1,130,950 09/30/2016 0.60% 2.02%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.65 $18.55 27,717 12/31/2016 0.53% 0.96%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.73 88,747 11/15/2016 0.51% 1.21%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.86 $19.76 14,460 09/15/2016 0.50% 1.96%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $19.45 $19.36 21,193 06/30/2016 0.48% 10.26%
+ XNPT 05/23/2016 Arbor Pharmaceuticals, LLC (N/A) All Cash $467 million $7.03 $7.00 794,016 09/30/2016 0.43% 1.44%
+ ELRC 05/31/2016 Platinum Equity (N/A) All Cash $323.4 million $13.12 $13.07 784,067 09/30/2016 0.38% 1.28%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $117.72 $117.29 179,428 12/31/2016 0.37% 0.67%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $29.90 183,574 12/31/2016 0.33% 0.61%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.77 $17.71 657,423 12/31/2016 0.32% 0.58%
+ SQI 05/31/2016 affiliates of Accel-KKR (N/A) All Cash $509 million $17.75 $17.70 220,025 09/30/2016 0.28% 0.95%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $33.42 196,387 06/30/2016 0.24% 5.14%
+ SSRG 05/03/2016 an affiliate of RoundTable Healthcare Partners (N/A) All Cash $140.3 million $13.10 $13.07 28,540 09/30/2016 0.23% 0.77%
+ MKTO 05/31/2016 Vista Equity Partners (N/A) All Cash $1.79 billion $35.25 $35.18 1,354,990 09/30/2016 0.20% 0.67%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.70 768,557 06/30/2016 0.19% 4.02%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $21.14 $21.11 354,578 06/30/2016 0.15% 3.28%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $65.93 942,231 12/31/2016 0.11% 0.19%
+ OPWR 05/02/2016 Oracle Corporation (ORCL) All Cash $532 million $10.30 $10.29 275,000 12/31/2016 0.10% 0.18%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $11.12 $11.11 388,145 06/30/2016 0.10% 2.08%
+ KKD 05/09/2016 JAB Beech Inc. (N/A) All Cash $1.35 billion $21.00 $20.98 476,338 09/30/2016 0.10% 0.32%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $11.21 9,754 12/31/2016 0.09% 0.16%
+ ANAC 05/16/2016 Pfizer Inc. (PFE) All Cash $5.2 billion $99.25 $99.19 2,436,280 09/30/2016 0.06% 0.20%
+ LDRH 06/07/2016 Zimmer Biomet Holdings, Inc. (ZBH) All Cash $1 billion $37.00 $36.98 1,169,450 09/30/2016 0.05% 0.18%
+ TXTR 04/28/2016 Oracle Corporation (ORCL) All Cash $663 million $26.00 $25.99 327,815 12/31/2016 0.04% 0.07%
+ CPXX 05/31/2016 Jazz Pharmaceuticals Public Limited Company (JAZZ) All Cash $1.5 billion $30.25 $30.24 1,019,436 09/30/2016 0.03% 0.11%
+ UNTD 05/04/2016 B. Riley Financial, Inc. (RILY) All Cash $170 million $11.00 $11.00 147,426 09/30/2016 0.00% 0.00%
+ NSPH 05/16/2016 Luminex Corporation (LMNX) All Cash $58 million $1.70 $1.70 588,879 06/30/2016 0.00% 0.00%
+ DWRE 06/01/2016 salesforce.com, inc. (CRM) All Cash $2.8 billion $75.00 $75.00 2,306,798 07/31/2016 0.00% 0.00%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.53 4,249,061 12/31/2016 -0.12% -0.21%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.04 729,797 12/31/2016 -0.16% -0.29%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.66 1,380,076 06/30/2016 -0.40% -8.54%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $60.33 341,423 12/31/2016 -0.55% -0.99%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $15.86 $15.97 2,046,039 05/31/2017 -0.70% -0.72%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.38 144,952 09/30/2016 -0.71% -2.37%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $25.80 3,646 09/30/2016 -0.78% -2.60%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $25.18 $25.50 1,225,046 12/31/2016 -1.26% -2.29%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.27 $13.44 17,021 06/30/2016 -1.30% -27.88%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $19.67 $20.19 27,766 09/30/2016 -2.59% -8.69%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.62 373,164 12/15/2016 -2.72% -5.37%
+ PLCM 04/15/2016 Mitel Networks Corporation (MITL) Cash Plus Stock $1.96 billlion $11.48 $11.89 883,140 09/30/2016 -3.47% -11.61%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.42 $16.05 1,099 09/30/2016 -3.91% -13.08%
+ IOC 05/20/2016 Oil Search Limited (OSH.AX) All Stock $2.2 billion $40.96 $43.05 323,441 09/30/2016 -4.85% -16.24%
+ ALXA 05/10/2016 Grupo Ferrer Internacional, S.A. (N/A) Special Conditions N/A $0.90 $0.95 41,388 06/30/2016 -5.26% -113.00%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $5.52 $10.16 66,786 03/31/2015 -45.63% 37.85%

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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