Merger Arbitrage Mondays – August 15, 2016

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August 15, 2016 | Merger Arbitrage | | Author Asif

Merger activity remained the same with four new deals announced and three 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 133
Total Number of Deals Not Completed in 2016 11
Total Number of Pending Deals
Cash Deals 59
Stock Deals 17
Stock & Cash Deals 14
Special Conditions 8
Total Number of Pending Deals 98
Total Deal Size $984.75 billion

New Deals:

  1. The acquisition of EverBank Financial (EVER) by TIAA for $2.5 billion or $19.50 per share in cash.
  2. The acquisition of Monster Worldwide (MWW) by Randstad Holding for $429 million or $3.40 per share in cash.
  3. The acquisition of Press Ganey Holdings (PGND) by the private equity firm EQT for $2.35 billion or $40.50 per share in cash.
  4. The acquisition of Silicon Graphics International (SGI) by Hewlett Packard Enterprise Company (HPE) for $275 million or $7.75 per share in cash.

Deal Updates:

  1. On August 10, 2016, Lam Research Corporation (LRCX) and KLA-Tencor Corporation (KLAC) today provided an update on their planned business combination. It has become more likely that obtaining regulatory clearances in one or more of the remaining jurisdictions may extend beyond October 20, 2016, the outside date set forth in the merger agreement. We are changing the closing date for the deal to December 31, 2016.
  2. On August 13, 2016, The judge overseeing the U.S. Justice Department’s bid to stop health insurer Anthem (ANTM) from merging with competitor Cigna (CI) said on Friday her goal was to have a ruling by the end of January, later than the Dec. 30 date sought by Anthem. We are changing the closing date for the deal to March 31, 2017.

Closed Deals:

  1. The acquisition of China Nepstar Chain Drugstore (NPD) by China Neptunus Drugstore Holding and Neptunus Global Limited on August 3, 2016. It took 140 days for this deal to be completed.
  2. The acquisition of ReachLocal (RLOC) by Gannett (GCI) on August 9, 2016. It took 43 days for this deal to be completed.
  3. The acquisition of Electro Rent Corporation (ELRC) by Platinum Equity on August 10,2016.  It took 71 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

HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $1.58 09/30/2016 153.16% 1215.33%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $40.45 12/31/2016 38.44% 101.68%
CI 07/24/2015 Anthem, Inc. (ANTM) $170.47 $133.31 03/31/2017 27.88% 44.63%
HUM 07/03/2015 Aetna Inc. (AET) $225.15 $180.86 12/31/2016 24.49% 64.77%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.55 12/31/2016 19.21% 50.80%
LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) $40.50 $35.02 12/31/2016 15.65% 41.39%
WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $53.45 03/31/2017 12.25% 19.62%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.66 12/31/2016 12.23% 32.36%
KLAC 10/21/2015 Lam Research Corporation (LRCX) $76.59 $68.28 12/31/2016 12.17% 32.19%
CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) $36.00 $32.33 09/30/2016 11.35% 90.07%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $1.58 190,166 09/30/2016 153.16% 1215.33%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $40.45 620,680 12/31/2016 38.44% 101.68%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $170.47 $133.31 3,709,633 03/31/2017 27.88% 44.63%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $225.15 $180.86 1,246,314 12/31/2016 24.49% 64.77%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.55 5,270,697 12/31/2016 19.21% 50.80%
+ 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 $35.02 241,816 12/31/2016 15.65% 41.39%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $53.45 560,278 03/31/2017 12.25% 19.62%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.66 596,580 12/31/2016 12.23% 32.36%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $76.59 $68.28 2,896,651 12/31/2016 12.17% 32.19%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $32.33 140,681 09/30/2016 11.35% 90.07%
+ 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 $9.04 160,127 08/31/2016 10.62% 242.26%
+ TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $10.49 1,491,683 03/31/2017 10.58% 16.94%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.16 12,004 12/31/2016 8.12% 21.47%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.882 1,019,684 03/31/2017 7.71% 12.34%
+ YDKN 07/21/2016 F.N.B. Corporation (FNB) All Cash $1.4 billion $27.35 $25.48 133,105 03/31/2017 7.34% 11.75%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $105.55 153,779 03/31/2017 7.06% 11.30%
+ IOC 07/21/2016 Exxon Mobil Corporation (XOM) Special Conditions $2.5 billion $52.07 $49.02 331,566 09/30/2016 6.22% 49.37%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.41 $13.69 199,894 08/15/2016 5.23% 0.00%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.10 237,685 08/15/2016 4.84% 0.00%
+ SCTY 08/01/2016 Tesla Motors (TSLA) All Stock $5.4 billion $24.82 $23.70 2,087,515 04/30/2017 4.71% 6.67%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $33.06 $31.60 162,015 12/31/2016 4.62% 12.22%
+ PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.80 N/A 12/31/2016 4.44% 11.76%
+ LLTC 07/26/2016 Analog Devices, Inc. (ADI) Cash Plus Stock $14.8 billion $60.91 $58.78 2,077,646 06/30/2017 3.62% 4.15%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $27.36 2,921,799 06/30/2017 3.44% 3.93%
+ ARMH 07/18/2016 SoftBank Group (SFBTY) All Cash $32 billion $67.32 $65.23 1,480,154 12/31/2016 3.20% 8.47%
+ STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $32.46 $31.51 951,936 12/31/2016 3.00% 7.95%
+ DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.51 285,321 12/31/2016 2.92% 7.72%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.62 26,695 06/30/2016 2.79% 0.00%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $85.97 $83.64 1,419,222 12/31/2016 2.79% 7.37%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $47.66 $46.50 424,633 12/31/2016 2.50% 6.61%
+ OSHC 07/13/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $145.6 million $22.60 $22.09 21,936 01/31/2017 2.31% 5.00%
+ LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $191.61 1,639,571 12/31/2016 2.29% 6.06%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.07 5,533,333 06/30/2017 2.25% 2.58%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $77.85 1,105,996 07/31/2016 2.16% 0.00%
+ EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $22.31 $21.84 2,422,943 12/31/2016 2.16% 5.71%
+ TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.72 774,218 12/31/2016 2.04% 5.40%
+ SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $34.24 $33.56 38,209 12/31/2016 2.03% 5.38%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.15 3,028,840 12/31/2016 1.99% 5.28%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.95 143,819 01/01/2017 1.88% 4.93%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.33 $18.00 1,900 12/31/2016 1.85% 4.89%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.93 105,120 12/31/2016 1.79% 4.72%
+ DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $29.72 1,715,663 12/31/2016 1.78% 4.72%
+ MKTO 05/31/2016 Vista Equity Partners (N/A) All Cash $1.79 billion $35.25 $34.69 2,978,879 09/30/2016 1.61% 12.81%
+ FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $4.98 33,221 09/30/2016 1.41% 11.15%
+ RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $24.00 $23.68 120,775 09/30/2016 1.36% 10.76%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.41 $12.25 2,606 12/31/2016 1.34% 3.55%
+ CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $18.75 $18.50 7,500 03/31/2017 1.34% 2.14%
+ SQNM 07/27/2016 Laboratory Corporation of America (LH) All Cash $371 million $2.40 $2.37 2,465,194 12/31/2016 1.27% 3.35%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.84 653,094 12/31/2016 1.16% 3.06%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.45 6,343 07/31/2016 1.12% 0.00%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.78 401,139 07/21/2016 1.11% 0.00%
+ EPIQ 07/27/2016 OMERS Private Equity and Harvest Partners (N/A) All Cash $1 billion $16.50 $16.33 415,965 12/31/2016 1.04% 2.75%
+ FLTX 08/01/2016 Verizon (VZ) All Cash $2.4 billion $60.00 $59.39 1,041,530 12/31/2016 1.03% 2.72%
+ AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.76 623,509 10/15/2016 0.97% 5.80%
+ GLDC 07/19/2016 Utz Quality Foods, Inc. (N/A) All Cash $135 million $12.00 $11.89 3,837 12/31/2016 0.93% 2.45%
+ BBX 07/28/2016 BFC Financial (BFCF) All Cash $293 million $20.00 $19.82 11,263 06/30/2017 0.91% 1.04%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.61 972,830 09/30/2016 0.85% 6.73%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $14.71 $14.59 445,244 12/31/2016 0.82% 2.18%
+ SGI 08/12/2016 Hewlett Packard Enterprise Company (HPE) All Cash $275 million $7.75 $7.69 17,815,903 01/31/2017 0.78% 1.69%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.70 146,282 01/31/2017 0.75% 1.62%
+ PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.41 2,304,195 09/30/2016 0.73% 5.75%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.55 $1.54 143,433 09/30/2016 0.67% 5.35%
+ RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.91 177,415 12/31/2016 0.65% 1.71%
+ IMPR 07/13/2016 an affiliate of Thoma Bravo, LLC (N/A) All Cash $544 million $19.25 $19.14 159,341 12/31/2016 0.57% 1.52%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $37.83 $37.62 7,937 12/31/2016 0.57% 1.51%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.29 $17.22 433,106 12/31/2016 0.43% 1.14%
+ QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $30.37 839,076 09/30/2016 0.43% 3.40%
+ MESG 05/23/2016 Siris Capital Group, LLC (N/A) All Cash $643 million $25.00 $24.90 74,355 09/30/2016 0.40% 3.19%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $14.53 $14.48 623,942 12/31/2016 0.35% 0.94%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $21.31 $21.24 421,634 09/30/2016 0.31% 2.45%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.75 26,240 11/15/2016 0.31% 1.22%
+ MFRM 08/07/2016 Steinhoff International Holdings NV (N/A) All Cash $3.8 billion $64.00 $63.84 437,759 09/30/2016 0.25% 1.99%
+ AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.92 2,194,962 12/31/2016 0.24% 0.64%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.92 213,680 03/31/2017 0.24% 0.38%
+ QLGC 06/15/2016 Cavium, Inc. (CAVM) Cash Plus Stock $1.36 billion $16.07 $16.04 1,139,193 09/30/2016 0.20% 1.61%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.90 149,479 12/31/2016 0.17% 0.44%
+ ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $36.94 21,620 12/31/2016 0.16% 0.43%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $43.88 $43.81 2,567,276 09/30/2016 0.16% 1.26%
+ RLYP 07/21/2016 Galenica Group (N/A) All Cash $1.53 billion $32.00 $31.95 1,072,317 09/30/2016 0.16% 1.24%
+ NATL 07/25/2016 Great American Insurance Company (N/A) All Cash $660 million $32.50 $32.45 8,980 12/31/2016 0.15% 0.41%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.94 243,160 12/31/2016 0.15% 0.39%
+ HTWR 06/27/2016 Medtronic plc (MDT) All Cash $1.1 billion $58.00 $57.94 157,048 10/28/2016 0.10% 0.51%
+ SGNT 07/11/2016 Nichi-Iko Pharmaceutical Co., Ltd (N/A) All Cash $736 million $21.75 $21.73 211,692 03/31/2017 0.09% 0.15%
+ NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $85.95 47,531 08/31/2016 0.06% 1.33%
+ OUTR 07/25/2016 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (N/A) All Cash $1.6 billion $52.00 $52.17 497,377 09/30/2016 -0.33% -2.59%
+ PGND 08/09/2016 EQT Equity fund EQT VII (N/A) All Cash $2.35 billion $40.50 $40.64 256,649 12/31/2016 -0.34% -0.91%
+ SKUL 06/24/2016 Incipio LLC (N/A) All Cash $188.6 million $6.10 $6.14 645,080 09/30/2016 -0.65% -5.17%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $29.34 $29.54 586,078 12/31/2016 -0.69% -1.81%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.20 226,950 12/31/2016 -0.79% -2.10%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $16.33 $16.53 700,139 05/31/2017 -1.23% -1.55%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.28 72,296 12/31/2016 -1.32% -3.48%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $17.53 $17.88 10,360 03/31/2017 -1.96% -3.14%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.52 $12.80 1,478 06/30/2016 -2.21% 17.52%
+ TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.57 $1.61 9,201 12/31/2016 -2.52% -6.68%
+ MWW 08/09/2016 Randstad Holding (N/A) All Cash $429 million $3.40 $3.51 1,973,478 12/31/2016 -3.13% -8.29%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.82 947,279 12/15/2016 -3.82% -11.42%
+ AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.45 $1.57 159,879 12/31/2016 -7.89% -20.87%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.93 $11.48 110,205 12/31/2016 -57.03% -150.83%

Disclaimer: I hold long positions in Apollo Education (APOL), Monster Worldwide (MWW) and Hutchinson Technology (HTCH). 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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