Merger Arbitrage Mondays – August 22, 2016

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August 22, 2016 | Merger Arbitrage | | Author Asif

Merger activity remained the same 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 137
Total Number of Deals Not Completed in 2016 10
Total Number of Pending Deals
Cash Deals 60
Stock Deals 19
Stock & Cash Deals 12
Special Conditions 8
Total Number of Pending Deals 99
Total Deal Size $988.67 billion

New Deals:

  1. The acquisition of Providence and Worcester Railroad Company (PWX) by Genesee & Wyoming (GWR) for $126 million or $25.00 per share in cash.
  2. The acquisition of G&K Services (GK) by Cintas Corporation (CTAS) for $2.2 billion or $97.50 per share in cash.
  3. The acquisition of Cardinal Financial (CFNL) by United Bankshares (UBSI) for $912 million in an all stock deal. Under the terms of the agreement, shareholders of Cardinal Financial will receive 0.71 of United’s shares for each share of Cardinal.
  4. The acquisition of SunEdison Semiconductor Limited (SEMI) by GlobalWafers for $683 million or $12.00 per share in cash.

Deal Updates:

  1. On August 17, 2016, Johnson Controls (JCI) shareholders voted to approve the previously announced merger with Tyco (TYC). Tyco shareholders have also approved the transaction.The merger with Tyco is expected to be completed on September 2, 2016.
  2. On August 17, 2016, Shareholders of Qlik Technologies (QLIKapproved the sale of the company to private equity firm Thoma Bravo. All approvals required to complete the transaction have now been received and the transaction is expected to close on August 22.
  3. On August 18, 2016, Skullcandy’s (SKUL) Board of Directors , after consultation with its outside legal counsel and financial advisors, determined that the August 17 Mill Road Proposal constitutes a “Superior Proposal” as defined in Skullcandy’s previously announced definitive merger agreement, as amended, with Incipio. Also on August 17, 2016, pursuant to the terms of the Incipio Agreement, Skullcandy delivered notice to Incipio of the Skullcandy Board’s determination and intention, at or after 12:00 a.m., Eastern Time, on August 23, 2016, to terminate the Incipio Agreement and change its recommendation to Skullcandy’s stockholders to recommend the August 17 Mill Road Proposal, subject to Incipio’s rights pursuant to the Incipio Agreement to negotiate with and make revised proposals to Skullcandy during that period.
  4. On August 11, 2016, Analysts said that Samsung, Hitachi and Tokyo Electron will likely mount a regulatory attack on Lam Research’s (LRCX) $10.6 billion bid to acquire KLA-Tencor (KLAC), but that’s only if U.S. regulators don’t kill the deal that would unite two of the largest makers of chip-manufacturing equipment.
  5. August 22, 2016: According to Fidelity & Guaranty Life (FGL)’s Quarterly Report filed on August 2, 2016, Anbang continues to work on securing the required regulatory approvals and the parties are committed to securing such approvals, however, the closing of the FGL Merger, and the timing thereof, is subject to the regulatory review and approval process. In the event that the Merger Agreement is terminated, FGL may be required to pay a termination fee to Anbang and its subsidiaries of $51. We have made this deal Active again.

Closed Deals:

  1. The acquisition of QLogic (QLGC) by Cavium (CAVM) on August 16, 2016. It took 62 days for this deal to be completed.
  2. The acquisition of Marketo (MKTO) by Vista Equity Partners on August 16, 2016. It took 77 days for this deal to be completed.
  3. The acquisition of FirstMerit Corporation (FMER) by Huntington Bancshares Incorporated (HBAN) on August 17, 2016. It took 204 days for this deal to be completed.
  4. The acquisition of Xura (MESG) by Siris Capital Group on August 19, 2016. It took 88 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 $1.57 09/30/2016 154.78% 1448.55%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $40.47 12/31/2016 38.37% 106.92%
CI 07/24/2015 Anthem, Inc. (ANTM) $170.13 $133.00 03/31/2017 27.92% 46.11%
HUM 07/03/2015 Aetna Inc. (AET) $225.57 $178.00 12/31/2016 26.72% 74.46%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.75 12/31/2016 16.13% 44.94%
FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) $26.80 $23.20 06/30/2016 15.52% -106.86%
LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) $40.50 $35.14 12/31/2016 15.25% 42.50%
CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) $36.00 $32.08 09/30/2016 12.22% 114.36%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.68 12/31/2016 12.17% 33.90%
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 $8.93 08/31/2016 11.98% 485.94%

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 $1.57 235,508 09/30/2016 154.78% 1448.55%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $40.47 677,886 12/31/2016 38.37% 106.92%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $170.13 $133.00 1,077,774 03/31/2017 27.92% 46.11%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $225.57 $178.00 420,034 12/31/2016 26.72% 74.46%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.75 12,362,734 12/31/2016 16.13% 44.94%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $23.20 67,805 06/30/2016 15.52% 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 $35.14 384,405 12/31/2016 15.25% 42.50%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $32.08 283,422 09/30/2016 12.22% 114.36%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.68 336,754 12/31/2016 12.17% 33.90%
+ 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 $8.93 420,527 08/31/2016 11.98% 485.94%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.850 356,509 03/31/2017 11.76% 19.43%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $53.89 613,080 03/31/2017 11.34% 18.73%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $78.60 $70.95 1,636,694 12/31/2016 10.78% 30.02%
+ TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $10.58 1,092,286 03/31/2017 9.64% 15.92%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.22 7,427 12/31/2016 7.07% 19.71%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $106.02 299,493 03/31/2017 6.58% 10.87%
+ IOC 07/21/2016 Exxon Mobil Corporation (XOM) Special Conditions $2.5 billion $52.07 $49.03 288,470 09/30/2016 6.20% 58.03%
+ SCTY 08/01/2016 Tesla Motors (TSLA) All Stock $5.4 billion $24.75 $23.50 1,482,459 04/30/2017 5.32% 7.74%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.31 $13.60 86,285 08/15/2016 5.19% 0.00%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.50 $1.43 205,217 09/30/2016 4.85% 45.40%
+ SEMI 08/17/2016 GlobalWafers Co., Ltd. (N/A) All Cash $683 million $12.00 $11.48 2,478,236 06/30/2017 4.53% 5.30%
+ PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.80 N/A 12/31/2016 4.44% 12.38%
+ CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $27.48 $26.37 946,075 06/30/2017 4.22% 4.94%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.12 95,303 08/15/2016 4.17% 0.00%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $33.06 $31.77 107,159 12/31/2016 4.06% 11.31%
+ YDKN 07/21/2016 F.N.B. Corporation (FNB) All Stock $1.4 billion $26.61 $25.70 506,050 03/31/2017 3.55% 5.86%
+ STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $32.54 $31.48 689,309 12/31/2016 3.36% 9.37%
+ LLTC 07/26/2016 Analog Devices, Inc. (ADI) Cash Plus Stock $14.8 billion $60.89 $58.91 1,322,648 06/30/2017 3.36% 3.93%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.60 46,791 06/30/2016 2.94% 0.00%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $85.27 $82.98 2,880,370 12/31/2016 2.76% 7.70%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $27.57 1,179,790 06/30/2017 2.65% 3.10%
+ DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.53 333,088 12/31/2016 2.60% 7.25%
+ SQNM 07/27/2016 Laboratory Corporation of America (LH) All Cash $371 million $2.40 $2.34 3,031,246 12/31/2016 2.56% 7.14%
+ OSHC 07/13/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $145.6 million $22.82 $22.28 44,735 01/31/2017 2.44% 5.50%
+ LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $191.50 888,992 12/31/2016 2.35% 6.55%
+ SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $34.73 $33.97 108,290 12/31/2016 2.24% 6.25%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.15 2,792,203 12/31/2016 1.99% 5.56%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.97 196,694 01/01/2017 1.84% 5.09%
+ TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.76 805,797 12/31/2016 1.74% 4.86%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.19 1,474,172 06/30/2017 1.62% 1.89%
+ ARMH 07/18/2016 SoftBank Group (SFBTY) All Cash $32 billion $67.32 $66.27 801,186 12/31/2016 1.58% 4.41%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $32.03 54,887 12/31/2016 1.47% 4.09%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $47.59 $46.90 416,729 12/31/2016 1.46% 4.07%
+ EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $21.59 $21.28 1,615,291 12/31/2016 1.44% 4.01%
+ PWX 08/15/2016 Genesee & Wyoming Inc. (GWR) All Cash $126 million $25.00 $24.66 41,235 12/31/2016 1.38% 3.84%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.44 636 07/31/2016 1.35% 0.00%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.82 266,794 12/31/2016 1.30% 3.63%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.15 $37.67 5,065 12/31/2016 1.28% 3.57%
+ FLTX 08/01/2016 Verizon (VZ) All Cash $2.4 billion $60.00 $59.32 629,122 12/31/2016 1.15% 3.19%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.48 $18.27 864 12/31/2016 1.14% 3.18%
+ RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $26.17 $25.88 37,315 09/30/2016 1.13% 10.61%
+ CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $18.96 $18.75 2,098 03/31/2017 1.11% 1.83%
+ BBX 07/28/2016 BFC Financial (BFCF) All Cash $293 million $20.00 $19.81 3,554 06/30/2017 0.96% 1.12%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $14.91 $14.77 326,616 12/31/2016 0.95% 2.64%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.52 164,754 01/31/2017 0.92% 2.07%
+ EPIQ 07/27/2016 OMERS Private Equity and Harvest Partners (N/A) All Cash $1 billion $16.50 $16.35 381,184 12/31/2016 0.92% 2.56%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.82 565,800 07/21/2016 0.91% 0.00%
+ SGI 08/12/2016 Hewlett Packard Enterprise Company (HPE) All Cash $275 million $7.75 $7.69 1,311,195 01/31/2017 0.78% 1.76%
+ GLDC 07/19/2016 Utz Quality Foods, Inc. (N/A) All Cash $135 million $12.00 $11.91 12,921 12/31/2016 0.76% 2.11%
+ DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $30.06 2,987,818 12/31/2016 0.63% 1.76%
+ AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.85 588,357 10/15/2016 0.60% 4.08%
+ IMPR 07/13/2016 an affiliate of Thoma Bravo, LLC (N/A) All Cash $544 million $19.25 $19.14 358,425 12/31/2016 0.57% 1.60%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $15.15 $15.07 818,189 12/31/2016 0.53% 1.48%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.36 $12.30 11,840 12/31/2016 0.49% 1.36%
+ PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.44 2,308,437 09/30/2016 0.48% 4.51%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.65 940,852 09/30/2016 0.47% 4.39%
+ RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.94 203,967 12/31/2016 0.43% 1.20%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.86 155,730 03/31/2017 0.41% 0.68%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.74 13,216 11/15/2016 0.41% 1.76%
+ FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $5.03 9,080 09/30/2016 0.40% 3.72%
+ GK 08/16/2016 Cintas Corporation (CTAS) All Cash $2.2 billion $97.50 $97.13 326,494 02/28/2017 0.38% 0.73%
+ ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $36.89 30,299 12/31/2016 0.30% 0.83%
+ 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 $51.85 942,831 09/30/2016 0.29% 2.71%
+ NATL 07/25/2016 Great American Insurance Company (N/A) All Cash $660 million $32.50 $32.42 14,190 12/31/2016 0.25% 0.69%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.88 152,148 12/31/2016 0.20% 0.56%
+ RLYP 07/21/2016 Galenica Group (N/A) All Cash $1.53 billion $32.00 $31.96 1,227,714 09/30/2016 0.13% 1.17%
+ MFRM 08/07/2016 Steinhoff International Holdings NV (N/A) All Cash $3.8 billion $64.00 $63.92 282,801 09/30/2016 0.13% 1.17%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.96 574,695 12/31/2016 0.10% 0.27%
+ AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.97 659,432 12/31/2016 0.09% 0.25%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $79.51 1,261,865 07/31/2016 0.03% 0.00%
+ QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $30.50 3,271,964 08/22/2016 0.00% 0.00%
+ HTWR 06/27/2016 Medtronic plc (MDT) All Cash $1.1 billion $58.00 $58.00 157,429 10/28/2016 0.00% 0.00%
+ SGNT 07/11/2016 Nichi-Iko Pharmaceutical Co., Ltd (N/A) All Cash $736 million $21.75 $21.75 270,113 03/31/2017 0.00% 0.00%
+ NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $86.00 57,259 08/31/2016 0.00% 0.00%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.10 $17.13 650,849 12/31/2016 -0.18% -0.51%
+ PGND 08/09/2016 EQT Equity fund EQT VII (N/A) All Cash $2.35 billion $40.50 $40.59 252,065 12/31/2016 -0.22% -0.62%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.07 709,288 12/31/2016 -0.28% -0.78%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $44.80 $44.96 2,884,533 09/02/2016 -0.35% -11.45%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $28.82 $28.97 466,702 12/31/2016 -0.52% -1.45%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $16.43 $16.54 912,336 05/31/2017 -0.64% -0.83%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.27 36,071 12/31/2016 -0.88% -2.45%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $17.45 $17.65 10,830 03/31/2017 -1.11% -1.83%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.58 $12.96 16,110 06/30/2016 -2.92% 20.10%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.79 419,605 12/15/2016 -3.65% -11.60%
+ TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.53 $1.60 30,206 12/31/2016 -4.16% -11.58%
+ SKUL 06/24/2016 Incipio LLC (N/A) All Cash $188.6 million $6.10 $6.42 43,504 09/30/2016 -4.98% -46.65%
+ AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.45 $1.53 85,707 12/31/2016 -5.48% -15.28%
+ MWW 08/09/2016 Randstad Holding (N/A) All Cash $429 million $3.40 $3.78 5,404,605 12/31/2016 -10.05% -28.01%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $5.13 $11.80 317,799 12/31/2016 -56.56% -157.59%

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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Comments

  1. George
    August 22nd, 2016

    CKEC should be labled as a stock+cash deal.

  2. Asif
    August 22nd, 2016

    George, the way I understand the amended agreement, it is a cash “or” stock deal. Investors can choose to receive either $33.06 in cash or 1.0819 shares of AMC with 70% of the consideration paid in cash.

    This is why we have it listed as an all cash deal instead of a stock and cash deal.

    Let me know if I am mistaken.

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