Merger Arbitrage Mondays – August 29, 2016

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August 28, 2016 | Merger Arbitrage | | Author Asif

Merger activity increased last week with six 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 141
Total Number of Deals Not Completed in 2016 11
Total Number of Pending Deals
Cash Deals 61
Stock Deals 19
Stock & Cash Deals 12
Special Conditions 8
Total Number of Pending Deals 100
Total Deal Size $1012.49 billion

New Deals:

  1. The acquisition of Medivation (MDVN) by Pfizer (PFE) for $14 billion or $81.50 per share in cash.
  2. The acquisition of CST Brands (CST) by Alimentation Couche-Tard for $4.4 billion or $48.53 per share in cash.
  3. The acquisition of CIFC (CIFC) by F.A.B. Partners for $333 million. Under the terms of the agreement, shareholders of CIFC will receive $11.46 in cash per share  — $11.36 per share as consideration in the merger, plus a $0.10 per share distribution. The CIFC Board has declared a cash distribution of $0.10 per share to be paid on September 12, 2016 to shareholders of record as of the close of business on August 31, 2016.
  4. The acquisition of AEP Industries (AEPI) by Berry Plastics Group (BERY) for $765 million. Under the terms of the agreement, each AEP shareholder will elect to receive either $110 in cash or 2.5011 shares of Berry common stock per AEP share in the transaction, subject to an overall 50/50 proration to ensure that 50% of the total outstanding AEP shares are exchanged for the cash consideration.
  5. The acquisition of Rackspace Hosting (RAX) by affiliates of Apollo Global Management for $4.3 billion or $32.00 per share in cash.
  6. The acquisition of Skullcandy (SKUL) by MRSK Hold and MRSL Merger, entities affiliated with Mill Road Capital Management (collectively, “Mill Road”) for $196.6 million or $6.35 per share in cash.

Deal Updates:

  1. On August 23, 2016, Cousins Properties Incorporated (CUZ) and Parkway Properties (PKY) announced that at special meetings held on Tuesday, stockholders of both companies approved all proposals related to the previously announced stock-for-stock merger between Cousins and Parkway.
  2. On August 24, 2016, Apollo Commercial Real Estate Finance (ARI) and Apollo Residential Mortgage (AMTG) announced that the common stockholders of AMTG approved the proposed acquisition of AMTG by ARI at a special meeting of AMTG stockholders. The transaction is expected to close on August 31, 2016, subject to customary closing conditions.
  3. On August 24, 2016, Skullcandy (SKULannounced the termination of the previously announced merger agreement with Incipio, and the entry into a new merger agreement with MRSK Hold and MRSL Merger entities affiliated with Mill Road Capital Management.
  4. On August 25, 2016, OPKO Health (OPK) announced that at a Special Shareholder Meeting, shareholders of Transition Therapeutics (TTHI) holding approximately 93% of the outstanding common shares, voted to approve the previously announced agreement under which OPKO Health will acquire Transition Therapeutics. The Court hearing for the final order is scheduled to take place on August 29, 2016, and the acquisition is expected to close on September 1, 2016.
  5. On August 26, 2016, Alere (ALR) issued a statement saying it’s suing the company it’s hoping to merge with, Abbott Laboratories (ABT). Alere said in a statement that it filed the complaint Thursday in Delaware Chancery Court hoping “to compel Abbott to fulfill its obligations under the terms of the merger agreement to take all actions necessary to promptly obtain all required anti-trust approvals.”

Closed Deals:

  1. The acquisition of Qlik Technologies (QLIK) by Thoma Bravo on August 22, 2016. It took 81 days for this deal to be completed.
  2. The acquisition of DreamWorks Animation (DWA) by NBCUniversal on August 23, 2016. It took 117 days for this deal to be completed.
  3. The acquisition of Heartware International (HTWR) by Medtronic (MDT) on August 23, 2016. It took 57 days for this deal to be completed.
  4. The acquisition of The First Marblehead Corporation (FMD) by FP Resources USA on August 23, 2016. It took 82 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% 1747.03%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $39.55 12/31/2016 41.59% 122.43%
CI 07/24/2015 Anthem, Inc. (ANTM) $167.77 $127.65 03/31/2017 31.43% 53.61%
HUM 07/03/2015 Aetna Inc. (AET) $223.18 $177.38 12/31/2016 25.82% 76.00%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.43 12/31/2016 21.13% 62.20%
KLAC 10/21/2015 Lam Research Corporation (LRCX) $78.91 $67.52 12/31/2016 16.86% 49.63%
LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) $40.50 $35.49 12/31/2016 14.12% 41.55%
FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) $26.80 $23.59 06/30/2016 13.61% -82.78%
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 $8.83 08/31/2016 13.25% 2418.18%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.75 12/31/2016 11.94% 35.15%

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 93,448 09/30/2016 153.16% 1747.03%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $39.55 1,442,501 12/31/2016 41.59% 122.43%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $167.77 $127.65 1,683,923 03/31/2017 31.43% 53.61%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $223.18 $177.38 525,969 12/31/2016 25.82% 76.00%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.43 6,025,001 12/31/2016 21.13% 62.20%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $78.91 $67.52 1,392,598 12/31/2016 16.86% 49.63%
+ 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 $35.49 351,987 12/31/2016 14.12% 41.55%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $23.59 85,073 06/30/2016 13.61% 0.00%
+ 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 $8.83 458,433 08/31/2016 13.25% 2418.18%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.75 515,602 12/31/2016 11.94% 35.15%
+ WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $54.50 693,003 03/31/2017 10.09% 17.21%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $32.70 113,815 09/30/2016 10.09% 115.11%
+ AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.05 30,651 12/31/2016 10.08% 29.68%
+ TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $10.54 1,044,330 03/31/2017 10.06% 17.15%
+ SCTY 08/01/2016 Tesla Motors (TSLA) All Stock $5.4 billion $24.20 $22.05 1,488,049 04/30/2017 9.75% 14.58%
+ STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $84.18 $78.01 13,155,593 12/31/2016 7.91% 23.27%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $105.46 148,041 03/31/2017 7.15% 12.19%
+ IOC 07/21/2016 Exxon Mobil Corporation (XOM) Special Conditions $2.5 billion $52.07 $49.15 196,696 09/30/2016 5.94% 67.76%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.29 $13.61 179,051 08/31/2016 4.96% 905.66%
+ SEMI 08/17/2016 GlobalWafers Co., Ltd. (N/A) All Cash $683 million $12.00 $11.45 452,021 06/30/2017 4.80% 5.75%
+ CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $27.53 $26.31 449,401 06/30/2017 4.65% 5.57%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $33.06 $31.71 80,036 12/31/2016 4.26% 12.53%
+ PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.85 450 12/31/2016 3.96% 11.67%
+ YDKN 07/21/2016 F.N.B. Corporation (FNB) All Stock $1.4 billion $26.63 $25.70 624,569 03/31/2017 3.63% 6.19%
+ JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $27.33 1,719,124 06/30/2017 3.55% 4.25%
+ LLTC 07/26/2016 Analog Devices, Inc. (ADI) Cash Plus Stock $14.8 billion $60.61 $58.54 1,463,349 06/30/2017 3.54% 4.24%
+ WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.920 87,331 03/31/2017 3.26% 5.56%
+ STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $32.33 $31.31 690,821 12/31/2016 3.25% 9.57%
+ CIFC 08/19/2016 F.A.B. Partners (N/A) All Cash $333 million $11.46 $11.15 9,866 12/31/2016 2.78% 8.18%
+ CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $20.10 $19.59 1,794 03/31/2017 2.60% 4.44%
+ DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.53 504,112 12/31/2016 2.60% 7.66%
+ NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.18 4,794 08/15/2016 2.20% 0.00%
+ OSHC 07/13/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $145.6 million $23.30 $22.80 44,476 01/31/2017 2.18% 5.14%
+ CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $47.54 2,670,117 03/31/2017 2.08% 3.55%
+ TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.72 732,300 12/31/2016 2.04% 6.01%
+ SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $35.31 $34.66 11,009 12/31/2016 1.88% 5.53%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.97 232,470 01/01/2017 1.84% 5.37%
+ WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.24 2,834,149 12/31/2016 1.83% 5.38%
+ LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $192.50 1,128,277 12/31/2016 1.82% 5.35%
+ EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.17 1,285,879 06/30/2017 1.72% 2.06%
+ EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $21.24 $20.90 1,477,290 12/31/2016 1.64% 4.82%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $46.96 $46.20 446,407 12/31/2016 1.64% 4.82%
+ RAX 08/26/2016 affiliates of Apollo Global Management, LLC (N/A) All Cash $4.3 billion $32.00 $31.50 38,577,673 12/31/2016 1.59% 4.67%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.53 $18.24 712 12/31/2016 1.57% 4.63%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.79 45,157 06/30/2016 1.52% 0.00%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $32.04 57,689 12/31/2016 1.44% 4.23%
+ MDVN 08/22/2016 Pfizer Inc. (PFE) All Cash $14 billion $81.50 $80.35 7,492,352 12/31/2016 1.43% 4.21%
+ PWX 08/15/2016 Genesee & Wyoming Inc. (GWR) All Cash $126 million $25.00 $24.65 3,468 12/31/2016 1.42% 4.18%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.09 $14.88 687,954 12/31/2016 1.41% 4.15%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $78.43 966,394 07/31/2016 1.40% 0.00%
+ ARMH 07/18/2016 SoftBank Group (SFBTY) All Cash $32 billion $67.32 $66.42 864,084 12/31/2016 1.36% 3.99%
+ SGI 08/12/2016 Hewlett Packard Enterprise Company (HPE) All Cash $275 million $7.75 $7.66 1,146,517 01/31/2017 1.17% 2.77%
+ SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.45 5,587 07/31/2016 1.12% 0.00%
+ YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.66 $38.27 5,208 12/31/2016 1.03% 3.03%
+ SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.87 218,897 12/31/2016 0.94% 2.76%
+ BBX 07/28/2016 BFC Financial (BFCF) All Cash $293 million $20.00 $19.82 6,629 06/30/2017 0.91% 1.09%
+ RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $25.79 $25.57 40,230 09/30/2016 0.86% 9.86%
+ FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.68 332,071 01/31/2017 0.77% 1.81%
+ MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $14.87 $14.79 1,455,880 12/31/2016 0.53% 1.57%
+ AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.87 1,554,585 10/15/2016 0.52% 4.06%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.90 1,105,824 09/01/2016 0.50% 61.14%
+ GLDC 07/19/2016 Utz Quality Foods, Inc. (N/A) All Cash $135 million $12.00 $11.94 27,863 12/31/2016 0.50% 1.48%
+ SKUL 08/24/2016 Mill Road (N/A) All Cash $196.6 million $6.35 $6.32 77,037 09/30/2016 0.47% 5.41%
+ MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.24 38,859 12/31/2016 0.45% 1.31%
+ SQNM 07/27/2016 Laboratory Corporation of America (LH) All Cash $371 million $2.40 $2.39 850,686 12/31/2016 0.42% 1.23%
+ IMPR 07/13/2016 an affiliate of Thoma Bravo, LLC (N/A) All Cash $544 million $19.25 $19.18 108,473 12/31/2016 0.36% 1.07%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.88 176,844 03/31/2017 0.35% 0.60%
+ ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $36.87 35,153 12/31/2016 0.35% 1.04%
+ PGND 08/09/2016 EQT Equity fund EQT VII (N/A) All Cash $2.35 billion $40.50 $40.36 364,427 12/31/2016 0.35% 1.02%
+ PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.46 1,154,852 09/30/2016 0.32% 3.66%
+ REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.75 17,503 11/15/2016 0.31% 1.44%
+ EPIQ 07/27/2016 OMERS Private Equity and Harvest Partners (N/A) All Cash $1 billion $16.50 $16.45 101,423 12/31/2016 0.30% 0.89%
+ 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 $51.87 317,580 09/30/2016 0.25% 2.86%
+ DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $30.19 590,216 12/31/2016 0.20% 0.59%
+ FLTX 08/01/2016 Verizon (VZ) All Cash $2.4 billion $60.00 $59.90 401,764 12/31/2016 0.17% 0.49%
+ MFRM 08/07/2016 Steinhoff International Holdings NV (N/A) All Cash $3.8 billion $64.00 $63.90 345,927 09/30/2016 0.16% 1.79%
+ RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.98 127,424 12/31/2016 0.14% 0.42%
+ GK 08/16/2016 Cintas Corporation (CTAS) All Cash $2.2 billion $97.50 $97.39 335,181 02/28/2017 0.11% 0.23%
+ RLYP 07/21/2016 Galenica Group (N/A) All Cash $1.53 billion $32.00 $31.97 1,072,547 09/30/2016 0.09% 1.07%
+ SGNT 07/11/2016 Nichi-Iko Pharmaceutical Co., Ltd (N/A) All Cash $736 million $21.75 $21.73 1,293,291 03/31/2017 0.09% 0.16%
+ AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.97 594,106 12/31/2016 0.09% 0.27%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.97 450,981 12/31/2016 0.05% 0.15%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $24.99 621,017 12/31/2016 0.04% 0.12%
+ NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $85.99 28,882 08/31/2016 0.01% 2.12%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $43.67 $43.70 3,758,806 09/02/2016 -0.07% -6.15%
+ NATL 07/25/2016 Great American Insurance Company (N/A) All Cash $660 million $32.50 $32.56 10,776 12/31/2016 -0.18% -0.54%
+ IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $29.06 $29.13 210,195 12/31/2016 -0.22% -0.66%
+ AEPI 08/25/2016 Berry Plastics Group, Inc. (BERY) All Cash $765 million $110.00 $110.33 239,722 12/31/2016 -0.30% -0.88%
+ PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.33 $17.39 620,726 12/31/2016 -0.36% -1.07%
+ ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $16.59 $16.68 738,060 05/31/2017 -0.55% -0.73%
+ LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $17.72 $17.83 8,092 03/31/2017 -0.63% -1.07%
+ MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.27 $1.29 182,178 09/30/2016 -1.31% -14.91%
+ TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.86 3,146,230 09/30/2016 -1.47% -16.80%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.96 $13.19 6,451 06/30/2016 -1.77% 10.80%
+ FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.17 $12.42 665 12/31/2016 -2.00% -5.88%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.55 268,887 12/15/2016 -2.34% -7.90%
+ TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.42 $1.49 20,667 09/01/2016 -4.52% -549.38%
+ MWW 08/09/2016 Randstad Holding (N/A) All Cash $429 million $3.40 $3.68 2,013,999 12/31/2016 -7.61% -22.40%
+ AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.46 $1.60 129,205 12/31/2016 -8.98% -26.43%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $5.00 $12.00 165,264 12/31/2016 -58.33% -171.71%

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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