Merger Arbitrage Mondays – August 8, 2016

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August 7, 2016 | Merger Arbitrage | | Author Asif

Merger activity decreased last week with four new deals announced and five 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 130
Total Number of Deals Not Completed in 2016 11
Total Number of Pending Deals
Cash Deals 58
Stock Deals 17
Stock & Cash Deals 14
Special Conditions 8
Total Number of Pending Deals 97
Total Deal Size $979.19 billion

New Deals:

  1. The acquisition of Fleetmatics Group (FLTX) by Verizon (VZ) for $2.4 billion or $60.00 per share in cash.
  2. The acquisition of SolarCity (SCTY) by Tesla Motors (TSLA) for $5.4 billion in an all stock deal. Under the terms of the agreement, each share of SolarCity common stock will be converted into the right to receive 0.110 shares of Tesla common stock.
  3. The acquisition of Trina Solar (TSL) by an Investor consortium comprising Mr. Gao and other entities for $2.3 billion or $11.60 per share in cash.
  4. The acquisition of Mattress Firm Holding (MFRM) by Steinhoff International Holdings for $3.8 billion or $64.00 per share in cash.

Deal Updates:

  1. On August 2, 2016, Gannett (GCI) announced that it has extended its tender offer to purchase all of the outstanding shares of ReachLocal (RLOC) to August 8, 2016, unless further extended.
  2. On August 3, 2016, Skullcandy (SKUL), and Incipio jointly announced that they have entered into an amendment to their previously announced Agreement and Plan of Merger. Pursuant to the Amendment, Purchaser increased the offer price to acquire all the outstanding shares of common stock of Skullcandy from $5.75 per share to $6.10 per share in cash, or a total of approximately $188.6 million.
  3. On August 5, 2016, The federal judge assigned to decide whether two high-profile health insurer mergers violate antitrust laws has ordered the case involving Anthem (ANTM) and Cigna (CI) to be reassigned to another judge.
  4. On August 5, 2016, Electro Rent Corporation (ELRC) announced that at a special meeting, its shareholders approved the company’s acquisition by Platinum Equity. The transaction is expected to close on August 10, 2016.

Closed Deals:

  1. The acquisition of First Niagara Financial Group (FNFG) by KeyCorp. (KEY) on July 29, 2016. It took 273 days for this deal to be completed.
  2. The acquisition of Wilshire Bancorp (WIBC) by BBCN Bancorp (BBCN) on July 30, 2016. It took 236 days for this deal to be completed.
  3. The acquisition of Ceres (CERE) by Land O’Lakes on August 1, 2016. It took 45 days for this deal to be completed.
  4. The acquisition of Tumi Holdings (TUMI) by Samsonite International on August 2, 2016. It took 152 days for this deal to be completed.
  5. 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.

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 $1.62 09/30/2016 146.91% 1011.76%
MFRM 08/07/2016 Steinhoff International Holdings NV (N/A) $64.00 $29.74 09/30/2016 115.20% 793.35%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $37.46 12/31/2016 49.49% 124.59%
CI 07/24/2015 Anthem, Inc. (ANTM) $169.27 $128.50 12/31/2016 31.73% 79.87%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $6.98 12/31/2016 28.94% 72.85%
HUM 07/03/2015 Aetna Inc. (AET) $224.91 $178.96 12/31/2016 25.67% 64.63%
CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) $36.00 $31.16 09/30/2016 15.53% 106.97%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $33.89 12/31/2016 14.78% 37.21%
LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) $40.50 $35.73 12/31/2016 13.35% 33.61%
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 $8.95 08/31/2016 11.73% 186.18%

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 $1.62 708,293 09/30/2016 146.91% 1011.76%
+ MFRM 08/07/2016 Steinhoff International Holdings NV (N/A) All Cash $3.8 billion $64.00 $29.74 180,955 09/30/2016 115.20% 793.35%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $37.46 457,436 12/31/2016 49.49% 124.59%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $169.27 $128.50 1,504,144 12/31/2016 31.73% 79.87%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $6.98 6,274,415 12/31/2016 28.94% 72.85%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $224.91 $178.96 2,156,867 12/31/2016 25.67% 64.63%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $31.16 1,558,871 09/30/2016 15.53% 106.97%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $33.89 975,466 12/31/2016 14.78% 37.21%
+ 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 $35.73 364,962 12/31/2016 13.35% 33.61%
+ 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 $8.95 290,958 08/31/2016 11.73% 186.18%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $53.98 1,651,505 03/31/2017 11.15% 17.32%
+ TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $10.47 2,042,746 03/31/2017 10.79% 16.76%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $105.80 254,900 03/31/2017 6.81% 10.57%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.06 1,922 08/15/2016 6.21% 323.76%
+ IOC 07/21/2016 Exxon Mobil Corporation (XOM) Special Conditions $2.5 billion $52.07 $49.06 263,990 09/30/2016 6.14% 42.25%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.29 8,506 12/31/2016 5.88% 14.81%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $33.06 $31.38 414,304 12/31/2016 5.35% 13.48%
+ PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.71 23,848 12/31/2016 5.32% 13.40%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.35 $13.65 94,587 08/15/2016 5.14% 268.21%
+ YDKN 07/21/2016 F.N.B. Corporation (FNB) All Cash $1.4 billion $27.35 $26.04 1,407,518 03/31/2017 5.03% 7.81%
+ DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.45 229,132 12/31/2016 3.88% 9.76%
+ STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $31.98 $30.90 1,497,926 12/31/2016 3.50% 8.81%
+ LLTC 07/26/2016 Analog Devices, Inc. (ADI) Cash Plus Stock $14.8 billion $60.78 $58.93 4,634,299 06/30/2017 3.14% 3.52%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $27.46 2,508,272 06/30/2017 3.06% 3.42%
+ OSHC 07/13/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $145.6 million $22.58 $21.93 24,734 01/31/2017 2.97% 6.17%
+ DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $29.38 2,226,282 12/31/2016 2.96% 7.45%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.55 N/A 09/30/2016 2.75% 18.90%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.63 29,968 06/30/2016 2.71% 0.00%
+ RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $23.88 $23.25 181,845 09/30/2016 2.71% 18.64%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $86.16 $83.90 1,025,014 12/31/2016 2.70% 6.79%
+ SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $34.44 $33.66 65,351 12/31/2016 2.33% 5.86%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $47.24 $46.24 375,815 12/31/2016 2.15% 5.42%
+ TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.71 1,215,601 12/31/2016 2.12% 5.32%
+ SCTY 08/01/2016 Tesla Motors (TSLA) All Stock $5.4 billion $25.30 $24.79 2,321,174 04/30/2017 2.07% 2.85%
+ LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $192.15 1,460,624 12/31/2016 2.00% 5.04%
+ BBX 07/28/2016 BFC Financial (BFCF) All Cash $293 million $20.00 $19.61 10,631 06/30/2017 1.99% 2.23%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.87 82,963 12/31/2016 1.98% 4.98%
+ EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $23.68 $23.23 1,650,922 12/31/2016 1.95% 4.92%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.96 164,790 01/01/2017 1.86% 4.65%
+ ARMH 07/18/2016 SoftBank Group (SFBTY) All Cash $32 billion $67.32 $66.10 1,234,883 12/31/2016 1.85% 4.65%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.67 650,885 07/21/2016 1.68% 0.00%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.21 $37.64 36,324 12/31/2016 1.52% 3.82%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.55 610,110 09/30/2016 1.42% 9.79%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.81 287,200 12/31/2016 1.38% 3.46%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.54 253,939 03/31/2017 1.37% 2.13%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $78.63 $77.63 431,036 06/30/2016 1.28% 0.00%
+ SQNM 07/27/2016 Laboratory Corporation of America (LH) All Cash $371 million $2.40 $2.37 1,256,550 12/31/2016 1.27% 3.19%
+ EPIQ 07/27/2016 OMERS Private Equity and Harvest Partners (N/A) All Cash $1 billion $16.50 $16.30 497,544 12/31/2016 1.23% 3.09%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.59 1,841,854 12/31/2016 1.19% 2.99%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.00 $14.83 395,156 12/31/2016 1.15% 2.89%
+ AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.74 347,750 10/15/2016 1.05% 5.64%
+ FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $5.00 3,237 09/30/2016 1.00% 6.89%
+ CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $18.67 $18.49 23,971 03/31/2017 0.96% 1.49%
+ GLDC 07/19/2016 Utz Quality Foods, Inc. (N/A) All Cash $135 million $12.00 $11.89 31,665 12/31/2016 0.93% 2.33%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $17.74 $17.59 5,120 03/31/2017 0.87% 1.35%
+ FLTX 08/01/2016 Verizon (VZ) All Cash $2.4 billion $60.00 $59.50 876,710 12/31/2016 0.84% 2.12%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $78.91 755,174 07/31/2016 0.79% 0.00%
+ IMPR 07/13/2016 an affiliate of Thoma Bravo, LLC (N/A) All Cash $544 million $19.25 $19.10 1,250,893 12/31/2016 0.79% 1.98%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.68 171,176 01/31/2017 0.77% 1.59%
+ MESG 05/23/2016 Siris Capital Group, LLC (N/A) All Cash $643 million $25.00 $24.83 194,939 09/30/2016 0.68% 4.72%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.23 $17.12 294,742 12/31/2016 0.64% 1.60%
+ PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.43 1,832,581 09/30/2016 0.56% 3.88%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $15.00 $14.92 1,428,738 12/31/2016 0.56% 1.41%
+ RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.93 251,608 12/31/2016 0.50% 1.26%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.75 423,121 12/31/2016 0.42% 1.05%
+ QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $30.38 4,205,350 09/30/2016 0.39% 2.72%
+ SGNT 07/11/2016 Nichi-Iko Pharmaceutical Co., Ltd (N/A) All Cash $736 million $21.75 $21.67 638,330 03/31/2017 0.37% 0.57%
+ AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.88 2,466,128 12/31/2016 0.36% 0.92%
+ MKTO 05/31/2016 Vista Equity Partners (N/A) All Cash $1.79 billion $35.25 $35.14 630,107 09/30/2016 0.31% 2.16%
+ ELRC 05/31/2016 Platinum Equity (N/A) All Cash $382.2 million $15.50 $15.46 158,463 08/10/2016 0.26% 47.22%
+ QLGC 06/15/2016 Cavium, Inc. (CAVM) Cash Plus Stock $1.36 billion $15.80 $15.76 1,638,818 09/30/2016 0.23% 1.58%
+ RLYP 07/21/2016 Galenica Group (N/A) All Cash $1.53 billion $32.00 $31.93 3,937,389 09/30/2016 0.22% 1.51%
+ RLOC 06/27/2016 Gannett Co., Inc. (GCI) All Cash $156 million $4.60 $4.59 54,330 08/08/2016 0.22% 0.00%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.76 69,455 11/15/2016 0.20% 0.76%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $21.77 $21.73 732,476 09/30/2016 0.18% 1.27%
+ HTWR 06/27/2016 Medtronic plc (MDT) All Cash $1.1 billion $58.00 $57.91 103,054 10/28/2016 0.16% 0.70%
+ NATL 07/25/2016 Great American Insurance Company (N/A) All Cash $660 million $32.50 $32.47 16,290 12/31/2016 0.09% 0.23%
+ DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.99 909,030 12/31/2016 0.02% 0.06%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.50 8,473 07/31/2016 0.00% 0.00%
+ ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $37.02 18,179 12/31/2016 -0.05% -0.14%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $45.29 $45.32 1,429,147 09/30/2016 -0.06% -0.42%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $29.87 $29.93 832,881 12/31/2016 -0.21% -0.53%
+ NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $86.78 30,559 08/31/2016 -0.90% -14.26%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.24 563,891 12/31/2016 -0.95% -2.39%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.38 $18.56 218 12/31/2016 -0.96% -2.42%
+ 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 $52.58 415,261 09/30/2016 -1.10% -7.60%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.93 $13.07 18,537 06/30/2016 -1.10% 10.33%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $16.33 $16.52 822,886 05/31/2017 -1.17% -1.44%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $11.78 $11.96 213 12/31/2016 -1.50% -3.77%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.44 $1.47 95,829 09/30/2016 -1.93% -13.26%
+ SKUL 06/24/2016 Incipio LLC (N/A) All Cash $188.6 million $6.10 $6.24 101,989 09/30/2016 -2.24% -15.45%
+ TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.58 $1.62 8,425 12/31/2016 -2.64% -6.66%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.72 756,094 12/15/2016 -3.27% -9.26%
+ AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.43 $1.53 252,188 12/31/2016 -6.82% -17.18%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.54 254,565 12/31/2016 -11.42% -28.74%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $1.21 835,982 03/31/2017 -21.49% -33.37%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.92 $11.00 184,522 12/31/2016 -55.27% -139.13%

Disclaimer: I hold long positions in Apollo Education (APOL) 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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