GE And Hillary Face Tough Votes

| About: General Electric (GE)


Rocky roads for GE and Hillary.

Vista buys Infoblox.

Eldorado buys Isle of Capri.

Welcome to the Voting issue of M&A Daily

General Electric

General Electric (NYSE:GE) could lose target votes in both of its outstanding acquisitions. Its offer for Arcam (OTCPK:AMAVF) appears unlikely to secure the requisite 90% acceptance while its offer for SLM (OTC:SLGRF) is not likely to get the needed 75%. What will GE do? It could walk away or bump each offer by 10-15% to secure approvals. Given its strategic rationale, the latter is more likely.

Presidential Election

Speaking of grim upcoming elections, Hillary Clinton has suffered from a tough week. PredictIt has her down to a 65% chance of winning in the latest prediction market (for a real arbitrage opportunity, give them promo code STW50 to get your first $50 matched; as you probably have figured out, I love sign-up bonuses). She is down to a 59.5% chance of winning in the FiveThirtyEight 2016 Election Forecast. Her lead has dwindled to 0.9% in the RealClearPolitics two-way average and 0.7% in the four-way average. She remains the favorite, but it is an increasingly close call.


Vista Equity is buying Infoblox (NYSE:BLOX) in a $1.6 billion cash deal. BLOX holders get $26.50 per share. The target is working with Morgan Stanley (NYSE:MS).

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BLOX has returned over 30% since it was disclosed on M&A Daily.

Isle of Capri

Eldorado (NASDAQ:ERI) is buying Isle of Capri (NASDAQ:ISLE) in a $965 million deal. ISLE holders get to elect $23 in cash or 1.638 ERI subject to proration. The buyer is working with JPMorgan (NYSE:JPM); the target is working with Credit Suisse (NYSE:CS).

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Starboard delivered a written request calling for a special meeting of Depomed (NASDAQ:DEPO) shareholders on November 15.

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The definitive proxy was filed for Analog Devices (NYSE:ADI) acquisition of Linear (NASDAQ:LLTC). The target's shareholder vote is October 18. HSR was withdrawn on September 15 and refiled today.

Community Health

Community Health (NYSE:CYH) is exploring strategic alternatives.


The first S-4 amendment has been filed for the Tesla (NASDAQ:TSLA) acquisition of SolarCity (NASDAQ:SCTY). The $5.34 arb spread offers a 99% IRR if the deal closes by year-end. However, shareholder litigation could delay that closing.

American Capital

An amended N-14 was filed for the Ares (NASDAQ:ARCC) acquisition of American Capital (NASDAQ:ACAS). The $0.44 arb spread offers a 10% IRR if the deal closes by year-end.


The preliminary proxy was filed for the Couche-Tard (OTCPK:ANCUF) acquisition of CST (NYSE:CST).

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Today is the HSR filing deadline for the Horizon (NASDAQ:HZNP) acquisition of Raptor (NASDAQ:RPTP).


Today is the HSR filing deadline for the Danaher (NYSE:DHR) acquisition of Cepheid (NASDAQ:CPHD).


Today is the HSR filing deadline for the Crestview acquisition of Accuride (NYSE:ACW).


Today is the preliminary proxy filing deadline for the Apollo Global (NYSE:APO) pending acquisition of Rackspace (NYSE:RAX).


The Cynapsus (NASDAQ:CYNA) shareholder vote is on October 13 for its acquisition by Sunovion.


Sarepta (NASDAQ:SRPT) could emerge as a takeover candidate in the wake of FDA approved its muscular dystrophy drug eteplirsen.

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SunEdison Semi

The preliminary proxy was filed for the GlobalWafers acquisition of SunEdison Semi (NASDAQ:SEMI). The $0.55 arb spread offers a 13% IRR if the deal closes by February. More to come in future editions of M&A Daily

Done deal.

  • Thoma Bravo closed its acquisition of Imprivata (NYSE:IMPR).
  • Dominion (NYSE:D) closed its Questar (NYSE:STR) deal.
  • ON (NASDAQ:ON) completed its Fairchild (NYSE:FCS) deal.

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Elsewhere on Seeking Alpha

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Disclosure: I am/we are long BLOX, DEPO, CST, CYH, ACAS, SRPT, MON.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law. We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.