Merger Arbitrage Mondays – June 6, 2016

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June 5, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased significantly last week with twelve new deals announced and three deals closing. Out of the twelve new deals announced, seven of them were worth over $1 billion and all of the deals together were worth nearly $30 billion.

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 89
Total Number of Deals Not Completed in 2016 5
Total Number of Pending Deals
Cash Deals 59
Stock Deals 19
Stock & Cash Deals 14
Special Conditions 11
Total Number of Pending Deals 103
Total Deal Size $881.42 billion

New Deals:

  1. The acquisition of Westar Energy (WR) by Great Plains Energy Incorporated (GXP) for $12.2 billion in a cash plus stock deal. Under the terms of the agreement, Westar shareholders will receive $60.00 per share of total consideration for each share of Westar common stock, consisting of $51.00 in cash and $9.00 in Great Plains Energy common stock, subject to a 7.5 percent collar based upon the Great Plains Energy common stock price at the time of the closing of the transaction, with the exchange ratio for the stock consideration ranging between 0.2709 to 0.3148 shares of Great Plains Energy common stock for each Westar share of common stock, representing a consideration mix of 85 percent cash and 15 percent stock.
  2. The acquisition of SciQuest (SQI) by affiliates of Accel-KKR for $509 million or $17.75 per share in cash.
  3. The acquisition of Celator Pharmaceuticals (CPXX) by Jazz Pharmaceuticals Public Limited Company (JAZZ) for approximately $1.5 billion or $30.25 per share in cash.
  4. The acquisition of Marketo (MKTO) by Vista Equity Partners for $1.79 billion or $35.25 per share in cash.
  5. The acquisition of Electro Rent Corporation (ELRC) by Platinum Equity for $323.4 million or $13.12 per share in cash.
  6. The acquisition of Rose Rock Midstream (RRMS) by SemGroup Corporation (SEMG) in an all stock deal for $1.74 billion. Under the terms of the agreement, shareholders of Rose Rock Midstream will receive 0.8136 SemGroup common shares per Rose Rock common unit.
  7. The acquisition of E-Commerce China Dangdang (DANG) by Dangdang Holding Company Limited and Dangdang Merger Company Limited in a going private transaction for $556 million. Under the terms of the agreement, shareholders of E-Commerce China Dangdang will receive $6.70 per American depositary share of the Company, each ADS representing five Class A Shares of the Company.
  8. The acquisition of Demandware (DWRE) by salesforce.com (CRM) for $2.8 billion or $75.00 per share in cash.
  9. The acquisition of Qlik Technologies (QLIK) by Thoma Bravo for $3 billion or $30.50 per share in cash.
  10. The acquisition of The First Marblehead Corporation (FMD) by FP Resources USA for $65.5 million or $5.05 per share in cash.
  11. The acquisition of Polonia Bancorp (PBCP) by Prudential Bancorp (PBIP) for $38.1 million. Under the terms of the agreement, shareholders of Polonia Bancorp will be entitled to elect to receive either 0.7591 shares of Prudential common stock or $11.28 in cash for each common share of Polonia, subject to proration and allocation to ensure that 50% of outstanding Polonia shares are exchanged for shares of Prudential common stock and 50% are exchanged for cash.
  12. The acquisition of Talen Energy Corporation (TLN) by affiliates of Riverstone Holdings for $5.2 billion or $14.00 per share in cash.

Closed Deals:

  1. The acquisition of Fuel Systems Solutions (FSYS) by Westport Innovations (WPRT) on June 1, 2016. It took 274 days for this deal to be completed.
  2. The acquisition of SL Industries (SLI) by Handy & Harman (HNH) on June 1, 2016. It took 55 days for this deal to be completed.
  3. The acquisition of Baxalta Incorporated (BXLT) by Shire (SHPG) on June 3, 2016. It took 144 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 $22.83 06/30/2016 90.54% 1376.94%
CI 07/24/2015 Anthem, Inc. (ANTM) $171.32 $129.70 12/31/2016 32.09% 56.32%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $42.83 12/31/2016 30.75% 53.96%
HUM 07/03/2015 Aetna Inc. (AET) $225.53 $186.20 12/31/2016 21.12% 37.07%
FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) $26.80 $22.95 06/30/2016 16.78% 255.13%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.72 12/31/2016 16.58% 29.10%
HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $3.54 06/30/2016 12.99% 197.62%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.76 12/31/2016 11.91% 20.90%
KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) $1.08 $0.985 12/31/2016 9.64% 16.92%
LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) $40.50 $37.22 12/31/2016 8.81% 15.46%

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 $22.83 4,752,652 06/30/2016 90.54% 1376.94%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $171.32 $129.70 1,236,872 12/31/2016 32.09% 56.32%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $42.83 204,030 12/31/2016 30.75% 53.96%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $225.53 $186.20 1,094,103 12/31/2016 21.12% 37.07%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $22.95 289,455 06/30/2016 16.78% 255.13%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.72 5,438,038 12/31/2016 16.58% 29.10%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.54 126,852 06/30/2016 12.99% 197.62%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.76 1,025,823 12/31/2016 11.91% 20.90%
+ KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) All Cash N/A $1.08 $0.985 30,850 12/31/2016 9.64% 16.92%
+ 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 $37.22 700,257 12/31/2016 8.81% 15.46%
+ 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 $9.21 456,491 08/31/2016 8.58% 36.41%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $9.88 886,047 09/30/2016 8.30% 26.12%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.88 203,433 03/31/2017 7.95% 9.74%
+ FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $4.71 880,395 09/30/2016 7.22% 22.71%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.45 18,045 09/30/2016 6.94% 21.83%
+ DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.29 1,362,448 12/31/2016 6.52% 11.44%
+ 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 $2.36 1,721,553 06/30/2016 6.36% 96.66%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $56.47 4,480,839 03/31/2017 6.25% 7.66%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $75.00 948,577 06/30/2016 6.04% 91.86%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.39 $13.60 133,739 08/15/2016 5.84% 30.44%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.68 $12.01 11,578 12/31/2016 5.59% 9.82%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $23.76 24,120 06/30/2016 5.22% 79.37%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.09 131,467 08/15/2016 5.18% 27.00%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $0.98 $0.94 680,187 09/30/2016 4.77% 14.99%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $108.20 401,789 03/31/2017 4.44% 5.43%
+ PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.85 53,569 12/31/2016 3.96% 6.95%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $46.40 $44.78 1,456,766 12/31/2016 3.63% 6.37%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $80.87 $78.27 2,549,140 12/31/2016 3.32% 5.82%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.18 63,364 12/31/2016 3.21% 5.63%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.4601 12,794 12/31/2016 3.09% 5.43%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $44.49 $43.26 2,220,583 09/30/2016 2.84% 8.92%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $16.97 $16.54 29,614 03/31/2017 2.62% 3.20%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.61 $37.68 32,118 12/31/2016 2.46% 4.31%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $4.14 120,982 12/31/2016 2.17% 3.81%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.02 1,899 08/15/2016 2.07% 10.81%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.65 $18.29 2,786 12/31/2016 1.96% 3.44%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.88 214,181 12/31/2016 1.94% 3.41%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.79 18,352 06/30/2016 1.93% 29.35%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.98 292,696 01/01/2017 1.82% 3.18%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $16.06 $15.80 431,906 12/31/2016 1.65% 2.89%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.78 26,348 06/30/2016 1.60% 24.28%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.38 910,212 12/31/2016 1.54% 2.69%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $16.22 $15.97 1,847,526 12/31/2016 1.53% 2.69%
+ QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $30.10 4,230,176 09/30/2016 1.33% 4.18%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $22.82 $22.55 1,572,493 09/30/2016 1.19% 3.76%
+ NSPH 05/16/2016 Luminex Corporation (LMNX) All Cash $58 million $1.70 $1.68 943,291 06/30/2016 1.19% 18.11%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.455 20,481 07/31/2016 1.01% 6.70%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $19.38 $19.20 23,355 06/30/2016 0.95% 14.40%
+ HTS 04/11/2016 Annaly Capital Management, Inc. (NLY) All Stock $1.5 billion $16.46 $16.31 2,596,345 09/30/2016 0.92% 2.88%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.88 1,552,861 12/31/2016 0.86% 1.52%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.94 $10.86 1,807,800 09/30/2016 0.76% 2.40%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $35.74 327,332 09/30/2016 0.73% 2.29%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $34.65 1,994,364 06/30/2016 0.72% 10.97%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.71 161,793 11/15/2016 0.72% 1.62%
+ EXAM 04/27/2016 an affiliate of Leonard Green & Partners, L.P. (N/A) All Cash $2.2 billion $35.05 $34.81 998,677 09/30/2016 0.69% 2.17%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $11.15 33,127 12/31/2016 0.63% 1.10%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $73.55 $73.10 593,580 06/30/2016 0.62% 9.36%
+ MESG 05/23/2016 Siris Capital Group, LLC (N/A) All Cash $643 million $25.00 $24.85 397,562 09/30/2016 0.60% 1.90%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $33.31 282,251 06/30/2016 0.57% 8.67%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.89 538,727 06/09/2016 0.55% 67.29%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.84 136,557 03/31/2017 0.47% 0.58%
+ SSRG 05/03/2016 an affiliate of RoundTable Healthcare Partners (N/A) All Cash $140.3 million $13.10 $13.04 15,143 09/30/2016 0.46% 1.45%
+ ELRC 05/31/2016 Platinum Equity (N/A) All Cash $323.4 million $13.12 $13.06 109,582 09/30/2016 0.46% 1.45%
+ SQI 05/31/2016 affiliates of Accel-KKR (N/A) All Cash $509 million $17.75 $17.67 369,337 09/30/2016 0.45% 1.42%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $120.78 $120.24 152,438 12/31/2016 0.45% 0.79%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.59 $17.51 417,855 12/31/2016 0.44% 0.78%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $65.74 880,140 12/31/2016 0.40% 0.69%
+ DWRE 06/01/2016 salesforce.com, inc. (CRM) All Cash $2.8 billion $75.00 $74.74 1,963,677 07/31/2016 0.35% 2.31%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $3.99 19,045 06/30/2016 0.25% 3.81%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $21.54 $21.49 348,285 06/30/2016 0.24% 3.70%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $29.93 256,267 12/31/2016 0.23% 0.41%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $11.28 $11.26 640,844 06/30/2016 0.14% 2.09%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $24.97 768,214 12/31/2016 0.12% 0.21%
+ OPWR 05/02/2016 Oracle Corporation (ORCL) All Cash $532 million $10.30 $10.29 415,178 12/31/2016 0.10% 0.17%
+ UNTD 05/04/2016 B. Riley Financial, Inc. (RILY) All Cash $170 million $11.00 $10.99 261,944 09/30/2016 0.09% 0.29%
+ MKTO 05/31/2016 Vista Equity Partners (N/A) All Cash $1.79 billion $35.25 $35.22 1,952,235 09/30/2016 0.09% 0.27%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.73 1,437,848 06/30/2016 0.07% 1.14%
+ TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.99 13,291,281 12/31/2016 0.07% 0.13%
+ TXTR 04/28/2016 Oracle Corporation (ORCL) All Cash $663 million $26.00 $25.99 4,342,356 12/31/2016 0.04% 0.07%
+ PLCM 04/15/2016 Mitel Networks Corporation (MITL) Cash Plus Stock $1.96 billlion $11.88 $11.88 937,624 09/30/2016 0.03% 0.10%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $15.99 $15.99 5,264,036 05/31/2017 0.02% 0.02%
+ AFOP 04/07/2016 Corning Inc. (GLW) All Cash $305 million $18.50 $18.50 317,543 06/30/2016 0.00% 0.00%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $107.52 612,465 01/31/2017 -0.02% -0.03%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.51 3,803,911 12/31/2016 -0.04% -0.07%
+ ANAC 05/16/2016 Pfizer Inc. (PFE) All Cash $5.2 billion $99.25 $99.30 3,457,193 09/30/2016 -0.05% -0.16%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $19.76 $19.79 9,790 09/15/2016 -0.14% -0.50%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.59 1,425,295 06/30/2016 -0.14% -2.20%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $60.09 339,765 12/31/2016 -0.15% -0.26%
+ CPXX 05/31/2016 Jazz Pharmaceuticals Public Limited Company (JAZZ) All Cash $1.5 billion $30.25 $30.31 1,309,288 09/30/2016 -0.20% -0.62%
+ RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $26.91 $26.97 364,951 09/30/2016 -0.21% -0.65%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.35 646,790 09/30/2016 -0.54% -1.71%
+ XNPT 05/23/2016 Arbor Pharmaceuticals, LLC (N/A) All Cash $467 million $7.03 $7.07 831,815 09/30/2016 -0.57% -1.78%
+ KKD 05/09/2016 JAB Beech Inc. (N/A) All Cash $1.35 billion $21.00 $21.15 405,560 09/30/2016 -0.71% -2.23%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.15 $13.27 7,912 06/30/2016 -0.94% -14.31%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $25.81 $26.19 796,841 12/31/2016 -1.44% -2.53%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $19.88 $20.32 12,311 09/30/2016 -2.16% -6.81%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $26.20 700 09/30/2016 -2.29% -7.21%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.61 $16.04 5,165 09/30/2016 -2.67% -8.40%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.92 610,416 12/15/2016 -4.35% -8.27%
+ ALXA 05/10/2016 Grupo Ferrer Internacional, S.A. (N/A) Special Conditions N/A $0.90 $0.947 71,567 06/30/2016 -4.96% -75.48%
+ IOC 05/20/2016 Oil Search Limited (OSH.AX) All Stock $2.2 billion $39.38 $41.80 220,673 09/30/2016 -5.79% -18.23%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $65.65 $70.35 3,619,400 06/30/2016 -6.68% -101.63%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $5.39 $10.15 83,757 03/31/2015 -46.95% 39.57%

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.

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