Merger Arbitrage Mondays – July 11, 2016

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July 10, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with four new deals announced and four 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 112
Total Number of Deals Not Completed in 2016 9
Total Number of Pending Deals
Cash Deals 55
Stock Deals 21
Stock & Cash Deals 13
Special Conditions 9
Total Number of Pending Deals 98
Total Deal Size $910.46 billion

New Deals:

  1. The acquisition of Nortek (NTK) by Melrose Industries for $2.8 billion or $86.00 per share in cash.
  2. The acquisition of The WhiteWave Foods Company (WWAV) by Danone for $12.5 billion or $56.25 per share in cash.
  3. The acquisition of AVG Technologies (AVG) by Avast Software for $1.3 billion or $25.00 per share in cash.
  4. The acquisition of Polycom (PLCM) by Siris Capital Group for $2 billion or $12.50 per share in cash.

Deal Updates:

  1. On June 2, 2016, Anbang withdrew its application to buy Fidelity & Guaranty Life (FGL) after failing to provide information requested for processing the deal. Anbang will try a second time with a “refiled acquisition application” to the New York regulator.
  2. On July 5, 2016, IHS (IHS) and Markit (MRKTannounced that in connection with the completion of the previously announced merger between IHS and Markit, the combined company, which will be renamed IHS Markit Ltd., will be listed on the Nasdaq Global Select Market under the new trading symbol “INFO.”
  3. On July 8, 2016, Polycom (PLCM) announced that its board of directors has approved the termination of the company’s previously announced merger agreement with Mitel Networks Corporation (MITL). Polycom also announced that its Board of Directors has unanimously determined Siris Capital Group’s’ offer to constitute a “Company Superior Proposal” under the terms of its merger agreement with Mitel.
  4. On July 8, 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 July 21, 2016.
  5. On July 8, 2016, Aetna (AET) executives met with top Justice Department antitrust officials to convince the government that asset sales it proposed would address potential competitive problems that could threaten its deal to buy rival Humana (HUM).
  6. On July 8, 2016, Ku6 Media (KUTV) announced today that, at an extraordinary general meeting, the Company’s shareholders voted in favor of the proposal to authorize and approve the previously announced Agreement and Plan of Merger among the Company, Shanda Investment Holdings Limited and Ku6 Acquisition Company Limited.
  7. On July 9, 2016, WellCare Health Plans (WCG) and Centene (CNC) made competing offers for the Medicare Advantage insurance plans that Aetna (AET) is looking to shed as it seeks clearance for its acquisition of Humana (HUM).

Closed Deals:

  1. The acquisition of Xenoport (XNPT) by Arbor Pharmaceuticals on July 5, 2016. It took 43 days for this deal to be completed.
  2. The acquisition of Symmetry Surgical (SSRG) by an affiliate of RoundTable Healthcare Partners on July 5, 2016. It took 63 days for this deal to be completed.
  3. The acquisition of RR Media (RRM) by SES on July 6, 2016. It took 131 days for this deal to be completed.
  4. The acquisition of Rouse Properties (RSE) by an affiliate of Brookfield Asset Management on July 6, 2016. It took 132 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

HUM 07/03/2015 Aetna Inc. (AET) $222.99 $158.15 12/31/2016 41.00% 86.50%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $39.78 12/31/2016 40.77% 86.03%
CI 07/24/2015 Anthem, Inc. (ANTM) $171.48 $129.60 12/31/2016 32.32% 68.18%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.10 12/31/2016 26.76% 56.46%
HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $3.30 09/30/2016 21.21% 95.59%
WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) $0.95 $0.824 03/31/2017 15.29% 21.22%
AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) $6.66 $5.83 12/31/2016 14.24% 30.04%
DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) $6.70 $5.90 12/31/2016 13.56% 28.61%
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 $9.05 08/31/2016 10.50% 75.13%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $35.30 12/31/2016 10.20% 21.52%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $222.99 $158.15 5,565,477 12/31/2016 41.00% 86.50%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $39.78 581,513 12/31/2016 40.77% 86.03%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $171.48 $129.60 2,226,245 12/31/2016 32.32% 68.18%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.10 23,777,392 12/31/2016 26.76% 56.46%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.30 66,594 09/30/2016 21.21% 95.59%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.824 48,131 03/31/2017 15.29% 21.22%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $5.83 38,358 12/31/2016 14.24% 30.04%
+ DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $5.90 201,784 12/31/2016 13.56% 28.61%
+ 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 $9.05 874,086 08/31/2016 10.50% 75.13%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $35.30 922,072 12/31/2016 10.20% 21.52%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $22.95 84,212 06/30/2016 8.93% 0.00%
+ 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 $37.60 344,032 12/31/2016 7.71% 16.27%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.44 31,772 09/30/2016 7.38% 33.24%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.20 $13.34 309,111 08/15/2016 6.43% 67.06%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $56.42 1,022,833 03/31/2017 6.35% 8.81%
+ KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) All Cash N/A $1.08 $1.02 376,472 12/31/2016 5.88% 12.41%
+ PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.75 300 12/31/2016 4.93% 10.40%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.10 25,474 08/15/2016 4.84% 50.46%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.36 21,742 06/30/2016 4.79% 0.00%
+ STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $30.96 $29.60 2,685,596 12/31/2016 4.59% 9.68%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.24 1,253,142 09/30/2016 4.49% 20.24%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $108.39 483,139 03/31/2017 4.25% 5.90%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.16 149,515 12/31/2016 4.17% 8.79%
+ FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $4.86 4,983 09/30/2016 3.91% 17.62%
+ SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $33.00 $31.80 119,107 12/31/2016 3.76% 7.94%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $76.70 984,991 07/31/2016 3.69% 67.34%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.34 419,527 06/30/2016 3.59% 0.00%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $83.23 $80.58 1,186,619 12/31/2016 3.29% 6.93%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $34.97 709,703 09/30/2016 2.95% 13.27%
+ LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $190.44 1,253,704 12/31/2016 2.92% 6.16%
+ TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.63 1,595,714 12/31/2016 2.71% 5.73%
+ EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $26.27 $25.70 4,144,848 12/31/2016 2.23% 4.70%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $47.80 $46.78 609,999 12/31/2016 2.18% 4.60%
+ PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.25 86,480,090 09/30/2016 2.04% 9.20%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $43.62 $42.77 4,975,119 09/30/2016 1.99% 8.96%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.20 $16.88 941,932 12/31/2016 1.88% 3.96%
+ AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.40 1,878,838 12/31/2016 1.85% 3.91%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.82 $18.48 1,286 12/31/2016 1.83% 3.86%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.23 $14.96 403,115 12/31/2016 1.80% 3.81%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.66 1,726,656 07/21/2016 1.73% 63.12%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.99 126,769 12/31/2016 1.59% 3.36%
+ MESG 05/23/2016 Siris Capital Group, LLC (N/A) All Cash $643 million $25.00 $24.61 905,376 09/30/2016 1.58% 7.14%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.43 50,604 07/31/2016 1.58% 28.84%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $17.41 $17.14 31,564 03/31/2017 1.57% 2.19%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $9.84 $9.69 1,920,078 09/30/2016 1.56% 7.03%
+ QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $30.04 1,018,478 09/30/2016 1.53% 6.90%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $16.55 $16.30 1,151,176 12/31/2016 1.53% 3.22%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.38 $12.19 8,568 12/31/2016 1.52% 3.20%
+ AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.63 4,426,464 10/15/2016 1.50% 5.71%
+ HTS 04/11/2016 Annaly Capital Management, Inc. (NLY) All Stock $1.5 billion $16.43 $16.20 737,223 09/30/2016 1.41% 6.37%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $56.26 311,065 01/01/2017 1.32% 2.76%
+ CERE 06/17/2016 Land O’Lakes (N/A) All Cash $17.2 million $0.40 $0.395 296,747 09/30/2016 1.27% 5.70%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $37.56 $37.15 11,459 12/31/2016 1.12% 2.36%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $20.00 $19.78 2,356,411 09/30/2016 1.10% 4.98%
+ RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.87 540,211 12/31/2016 0.94% 1.98%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $74.44 $73.75 834,531 06/30/2016 0.94% 0.00%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.34 $1.33 237,691 09/30/2016 0.89% 4.03%
+ RLOC 06/27/2016 Gannett Co., Inc. (GCI) All Cash $156 million $4.60 $4.56 591,090 09/30/2016 0.88% 3.95%
+ CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $18.14 $17.98 58,081 03/31/2017 0.87% 1.21%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.88 462,203 12/31/2016 0.86% 1.82%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $3.97 50,468 06/30/2016 0.76% 0.00%
+ MKTO 05/31/2016 Vista Equity Partners (N/A) All Cash $1.79 billion $35.25 $34.99 374,144 09/30/2016 0.74% 3.35%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.78 361,832 01/31/2017 0.67% 1.21%
+ HTWR 06/27/2016 Medtronic plc (MDT) All Cash $1.1 billion $58.00 $57.64 437,784 10/28/2016 0.62% 2.09%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $4.21 38,247 12/31/2016 0.48% 1.00%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.74 134,130 11/15/2016 0.41% 1.18%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $29.90 345,871 12/31/2016 0.33% 0.71%
+ DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $30.15 1,744,069 12/31/2016 0.33% 0.70%
+ ELRC 05/31/2016 Platinum Equity (N/A) All Cash $382.2 million $15.50 $15.45 133,006 09/30/2016 0.32% 1.46%
+ QLGC 06/15/2016 Cavium, Inc. (CAVM) Cash Plus Stock $1.36 billion $14.88 $14.83 599,370 09/30/2016 0.31% 1.39%
+ EXAM 04/27/2016 an affiliate of Leonard Green & Partners, L.P. (N/A) All Cash $2.2 billion $35.05 $34.97 841,993 09/30/2016 0.23% 1.03%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.91 518,178 12/31/2016 0.15% 0.32%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.95 2,434,709 12/31/2016 0.12% 0.26%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $10.76 $10.75 472,741 06/30/2016 0.11% 0.00%
+ LDRH 06/07/2016 Zimmer Biomet Holdings, Inc. (ZBH) All Cash $1 billion $37.00 $36.97 1,150,031 09/30/2016 0.08% 0.37%
+ SQI 05/31/2016 affiliates of Accel-KKR (N/A) All Cash $509 million $17.75 $17.74 1,042,179 09/30/2016 0.06% 0.25%
+ DWRE 06/01/2016 salesforce.com, inc. (CRM) All Cash $2.8 billion $75.00 $74.97 1,886,555 07/31/2016 0.04% 0.73%
+ CPXX 05/31/2016 Jazz Pharmaceuticals Public Limited Company (JAZZ) All Cash $1.5 billion $30.25 $30.24 468,853 09/30/2016 0.03% 0.15%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.99 195,782 03/31/2017 0.03% 0.04%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.75 293,025 06/30/2016 0.00% 0.00%
+ KKD 05/09/2016 JAB Beech Inc. (N/A) All Cash $1.35 billion $21.00 $21.00 742,909 09/30/2016 0.00% 0.00%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $113.92 $113.97 481,677 12/31/2016 -0.05% -0.10%
+ RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $26.65 $26.70 122,008 09/30/2016 -0.20% -0.92%
+ TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.54 $1.55 31,352 12/31/2016 -0.66% -1.40%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $56.64 10,799,209 12/31/2016 -0.69% -1.45%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $25.80 N/A 09/30/2016 -0.78% -3.49%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.23 1,067,429 12/31/2016 -0.91% -1.92%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $27.42 $27.68 2,171,122 12/31/2016 -0.93% -1.97%
+ ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $37.37 46,305 12/31/2016 -0.99% -2.09%
+ NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $87.25 239,110 08/31/2016 -1.43% -10.25%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $15.60 $15.86 913,147 05/31/2017 -1.62% -1.83%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.51 $12.73 13,698 06/30/2016 -1.70% 56.56%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.56 396,740 12/15/2016 -2.39% -5.56%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $16.19 $16.86 9,147 09/30/2016 -3.97% -17.89%
+ SKUL 06/24/2016 Incipio LLC (N/A) All Cash $177 million $5.75 $6.07 288,371 09/30/2016 -5.27% -23.76%
+ IOC 05/20/2016 Oil Search Limited (OSH.AX) All Stock $2.2 billion $42.27 $47.97 403,472 09/30/2016 -11.87% -53.51%
+ AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.47 $1.67 563,553 12/31/2016 -12.18% -25.70%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.55 $12.09 115,995 03/31/2015 -62.38% 48.65%

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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