Merger Arbitrage Mondays – July 18, 2016

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July 17, 2016 | Merger Arbitrage | | Author Asif

Merger activity decreased last week with three 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 118
Total Number of Deals Not Completed in 2016 9
Total Number of Pending Deals
Cash Deals 53
Stock Deals 19
Stock & Cash Deals 14
Special Conditions 9
Total Number of Pending Deals 95
Total Deal Size $911.88 billion

New Deals:

  1. The acquisition of Sagent Pharmaceuticals (SGNT) by Nichi-Iko Pharmaceutical for $736 million or $21.75 per share in cash.
  2. The acquisition of Ocean Shore Holding (OSHC) by OceanFirst Financial (OCFC) for $145.6 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Ocean Shore Holding will receive $4.35 in cash and 0.9667 shares of OceanFirst common stock for each share of Ocean Shore common stock.
  3. The acquisition of Imprivata (IMPR) by an affiliate of Thoma Bravo for $544 million or $19.25 per share in cash.

Deal Updates:

  1. On July 11, 2016, Caesars Entertainment (CZR) and Caesars Acquisition (CACQ) amended their proposed merger agreement, which is intertwined with the $18 billion bankruptcy of the casino company’s main operating unit. Under the amended terms, Caesars Acquisition shareholders will receive 27 percent of the merged entity. Under the original proposal, they would have received 38 percent, according to regulatory filings. A confirmation hearing for CEOC’s Plan of Reorganization has been set for January 17, 2017.
  2. On July 12, 2016, Exxon Mobil (XOM) offered to buy InterOil Corp (IOC) topping the $2.2 billion deal from Australia’s Oil Search.  Exxon’s interest, which has not yet been made public by either company, is comprised of Exxon stock, as well as a Contingent Value Right (CVR), a seldom used instrument, which may give InterOil shareholders cash on a sliding scale depending on the value of a pending gas deposit discovery.
  3. On July 12, 2016, Abbott Laboratories (ABT) and St. Jude Medical (STJ) said they each received a request for additional information from the U.S. Federal Trade Commission related to their deal.
  4. On July 12, 2016, The Federal Reserve Board gave its approval to KeyCorp (KEY) to acquire First Niagara Financial Group (FNFG)
  5. On July 13, 2016, Carmike (CKEC) announced that it would postpone Friday’s special shareholder meeting to vote on AMC’s $740 million, $30 per share offer. The new meeting date will be July 25 at 9 a.m.
  6. On July 13, 2016, Huntington Bancshares (HBANwon U.S. antitrust approval to buy FirstMerit Corp (FMER).
  7. On July 14, 2016, BBCN Bancorp (BBCN) and Wilshire Bancorp (WIBC) jointly announced that each company’s shareholders voted in favor of the proposed merger of equals between the two companies. BBCN and Wilshire also announced that the merger transaction is scheduled for completion at the close of business on July 29, 2016, subject to the satisfaction of other customary closing conditions.

Closed Deals:

  1. The acquisition of Hatteras Financial (HTS) by Annaly Capital Management (NLY) on July 12, 2016. It took 92 days for this deal to be completed.
  2. The acquisition of IHS (IHS) by Markit (MRKT) on July 13, 2016. It took 114 days for this deal to be completed.
  3. The acquisition of Ku6 Media (KUTV) by Shanda Investment Holdings Limited on July 12, 2016. It took 98 days for this deal to be completed.
  4. The acquisition of Demandware (DWRE) by salesforce.com (CRM) on July 13, 2016. It took 42 days for this deal to be completed.
  5. The acquisition of LDR Holding Corporation (LDRH) by Zimmer Biomet Holdings (ZBH) on July 13, 2016. It took 36 days for this deal to be completed.
  6. The acquisition of Celator Pharmaceuticals (CPXX) by Jazz Pharmaceuticals Public Limited Company (JAZZ) on July 14, 2016. It took 44 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) $224.35 $158.89 12/31/2016 41.20% 90.59%
CI 07/24/2015 Anthem, Inc. (ANTM) $172.60 $131.67 12/31/2016 31.08% 68.34%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $43.62 12/31/2016 28.38% 62.41%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.19 12/31/2016 25.17% 55.35%
HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $3.31 09/30/2016 20.85% 102.82%
WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) $0.95 $0.812 03/31/2017 17.00% 24.23%
AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) $6.66 $5.89 12/31/2016 13.07% 28.74%
DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) $6.70 $5.98 12/31/2016 12.04% 26.47%
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 $9.04 08/31/2016 10.62% 88.09%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $35.64 12/31/2016 9.15% 20.11%

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 $224.35 $158.89 1,697,098 12/31/2016 41.20% 90.59%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $172.60 $131.67 2,478,435 12/31/2016 31.08% 68.34%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $43.62 5,606,222 12/31/2016 28.38% 62.41%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.19 37,995,149 12/31/2016 25.17% 55.35%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.31 101,299 09/30/2016 20.85% 102.82%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.812 37,481 03/31/2017 17.00% 24.23%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $5.89 9,700 12/31/2016 13.07% 28.74%
+ DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $5.98 310,634 12/31/2016 12.04% 26.47%
+ 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 $9.04 676,487 08/31/2016 10.62% 88.09%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $35.64 1,448,575 12/31/2016 9.15% 20.11%
+ 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 $37.84 152,158 12/31/2016 7.03% 15.46%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.45 25,744 09/30/2016 6.94% 34.23%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $56.22 725,813 03/31/2017 6.72% 9.59%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.07 33,705 08/15/2016 5.86% 76.43%
+ STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $31.57 $29.99 1,170,627 12/31/2016 5.28% 11.62%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.26 $13.55 131,300 08/15/2016 5.24% 68.34%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $34.28 348,960 09/30/2016 5.02% 24.75%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $108.24 261,836 03/31/2017 4.40% 6.27%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.43 169,754 06/30/2016 4.24% 0.00%
+ SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $34.42 $33.18 45,235 12/31/2016 3.74% 8.22%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $83.41 $80.49 2,285,926 12/31/2016 3.63% 7.98%
+ PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.90 200 12/31/2016 3.49% 7.67%
+ LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $189.57 939,570 12/31/2016 3.39% 7.46%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $76.97 879,080 07/31/2016 3.33% 93.38%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.48 351,313 06/30/2016 3.14% 0.00%
+ OSHC 07/13/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $145.6 million $22.48 $21.80 198,201 01/31/2017 3.10% 5.74%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.38 878,324 09/30/2016 3.08% 15.21%
+ FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $4.91 8,018 09/30/2016 2.85% 14.06%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $47.73 $46.52 743,126 12/31/2016 2.59% 5.71%
+ AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.35 1,465,030 12/31/2016 2.01% 4.42%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.86 41,425 12/31/2016 2.01% 4.42%
+ QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $29.90 1,072,897 09/30/2016 2.01% 9.90%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $19.08 $18.71 1,440 12/31/2016 2.00% 4.40%
+ TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.73 956,615 12/31/2016 1.97% 4.32%
+ EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $26.31 $25.81 1,281,008 12/31/2016 1.93% 4.25%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $16.16 $15.86 1,984,622 12/31/2016 1.91% 4.19%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $18.59 $18.25 15,275 03/31/2017 1.88% 2.68%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.48 $12.25 5 12/31/2016 1.87% 4.11%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.38 $1.35 76,134 09/30/2016 1.86% 9.19%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.51 $15.23 406,022 12/31/2016 1.84% 4.04%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.21 15,966 12/31/2016 1.81% 3.98%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $76.28 $75.13 1,638,768 06/30/2016 1.52% 0.00%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.72 440,041 07/21/2016 1.42% 172.75%
+ MESG 05/23/2016 Siris Capital Group, LLC (N/A) All Cash $643 million $25.00 $24.65 89,124 09/30/2016 1.42% 7.00%
+ PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.33 2,431,549 09/30/2016 1.38% 6.80%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $43.76 $43.19 3,277,417 09/30/2016 1.32% 6.51%
+ AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.68 1,193,719 10/15/2016 1.30% 5.32%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.62 $38.18 18,106 12/31/2016 1.14% 2.51%
+ CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $18.60 $18.39 43,618 03/31/2017 1.13% 1.61%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.85 848,151 12/31/2016 1.08% 2.38%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $56.40 280,223 01/01/2017 1.06% 2.33%
+ IMPR 07/13/2016 an affiliate of Thoma Bravo, LLC (N/A) All Cash $544 million $19.25 $19.05 742,024 12/31/2016 1.05% 2.31%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.41 421,825 01/31/2017 1.02% 1.90%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $18.00 $17.82 777,369 12/31/2016 0.98% 2.16%
+ RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.89 326,507 12/31/2016 0.79% 1.74%
+ RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $27.26 $27.05 70,256 09/30/2016 0.76% 3.75%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $4.20 58,249 12/31/2016 0.71% 1.57%
+ HTWR 06/27/2016 Medtronic plc (MDT) All Cash $1.1 billion $58.00 $57.59 343,626 10/28/2016 0.71% 2.55%
+ RLOC 06/27/2016 Gannett Co., Inc. (GCI) All Cash $156 million $4.60 $4.57 19,927 09/30/2016 0.66% 3.24%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.89 3,342,828 12/31/2016 0.64% 1.42%
+ MKTO 05/31/2016 Vista Equity Partners (N/A) All Cash $1.79 billion $35.25 $35.03 433,000 09/30/2016 0.63% 3.10%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $3.98 18,768 06/30/2016 0.50% 0.00%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $20.93 $20.83 561,027 09/30/2016 0.47% 2.30%
+ QLGC 06/15/2016 Cavium, Inc. (CAVM) Cash Plus Stock $1.36 billion $15.03 $14.97 642,116 09/30/2016 0.41% 2.03%
+ SQI 05/31/2016 affiliates of Accel-KKR (N/A) All Cash $509 million $17.75 $17.68 482,411 09/30/2016 0.40% 1.95%
+ DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $30.14 1,100,704 12/31/2016 0.36% 0.80%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.26 $10.22 3,467,174 09/30/2016 0.35% 1.74%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.67 2,710,860 06/30/2016 0.30% 0.00%
+ KKD 05/09/2016 JAB Beech Inc. (N/A) All Cash $1.35 billion $21.00 $20.94 1,212,780 09/30/2016 0.29% 1.41%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.49 63,477 07/31/2016 0.22% 6.25%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.76 57,867 11/15/2016 0.20% 0.62%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.88 407,771 12/31/2016 0.20% 0.44%
+ ELRC 05/31/2016 Platinum Equity (N/A) All Cash $382.2 million $15.50 $15.47 77,982 09/30/2016 0.19% 0.96%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.97 262,829 12/31/2016 0.07% 0.16%
+ CERE 06/17/2016 Land O’Lakes (N/A) All Cash $17.2 million $0.40 $0.40 406,431 09/30/2016 0.00% 0.00%
+ EXAM 04/27/2016 an affiliate of Leonard Green & Partners, L.P. (N/A) All Cash $2.2 billion $35.05 $35.07 478,820 09/30/2016 -0.06% -0.28%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $34.03 181,656 03/31/2017 -0.09% -0.13%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $11.32 $11.34 366,027 07/29/2016 -0.13% -4.47%
+ SGNT 07/11/2016 Nichi-Iko Pharmaceutical Co., Ltd (N/A) All Cash $736 million $21.75 $21.80 899,258 03/31/2017 -0.23% -0.33%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $25.18 61,838 06/30/2016 -0.71% 14.50%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.18 684,122 12/31/2016 -0.71% -1.57%
+ NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $86.62 57,139 08/31/2016 -0.72% -5.94%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $25.80 N/A 09/30/2016 -0.78% -3.82%
+ ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $37.42 44,877 12/31/2016 -1.12% -2.47%
+ TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.55 $1.57 20,944 12/31/2016 -1.13% -2.49%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $15.77 $15.96 558,138 05/31/2017 -1.21% -1.39%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $27.52 $27.86 669,777 12/31/2016 -1.22% -2.67%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.93 $13.18 16,444 06/30/2016 -1.86% 37.79%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $16.55 $17.15 10 09/30/2016 -3.50% -17.29%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.77 1,088,027 12/15/2016 -3.55% -8.63%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $31.48 564,222 12/31/2016 -4.70% -10.34%
+ SKUL 06/24/2016 Incipio LLC (N/A) All Cash $177 million $5.75 $6.10 163,226 09/30/2016 -5.74% -28.30%
+ AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.38 $1.51 395,036 12/31/2016 -8.31% -18.27%
+ IOC 05/20/2016 Oil Search Limited (OSH.AX) All Stock $2.2 billion $42.69 $47.61 943,937 09/30/2016 -10.34% -51.00%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.65 $11.00 63,335 12/31/2016 -57.75% -126.97%

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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