Merger Arbitrage Mondays - December 1, 2014

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Includes: BMRN, BYI, CIMT, DDD, EPB, GSK, KMI, KMP, KMR, MDT, NVS, PTP, RNA, RNR, SGMS, SPNC
by: Asif Suria

Merger Activity decreased last week with three new mergers 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 2014 151
Total Number of Deals Not Completed in 2014 2
Total Number of Pending Deals
Cash Deals 29
Stock Deals 20
Stock & Cash Deals 19
Special Conditions 10
Total Number of Pending Deals 78
Total Deal Size $638.36 billion

New Deals:

  1. The acquisition of Platinum Underwriters Holdings (NYSE:PTP) by RenaissanceRe Holdings (NYSE:RNR) for $1.9 billion. Under the terms of the agreement, shareholders of Platinum Underwriters Holdings will receive a $10.00 per share special pre-closing dividend with the remainder of the consideration, at their election, consisting of (i) $66.00 per Platinum share in cash, (ii) 0.6504 RenaissanceRe common shares per Platinum share, or (iii) a combination of $35.96 in cash and 0.2960 RenaissanceRe common shares per Platinum share, subject to proration.
  2. The acquisition of Prosensa Holding (NASDAQ:RNA) by BioMarin Pharmaceutical (NASDAQ:BMRN) for $680 million or $17.75 per share in cash. In addition, two approximately $80 million contingent milestones are payable for the approval of drisapersen in the U.S. no later than May 15, 2016 and Europe no later than February 15, 2017, respectively.
  3. The acquisition of Cimatron (NASDAQ:CIMT) by 3D Systems Corporation (NYSE:DDD) for $97 million or $8.97 per share in cash.

Deal Updates:

  1. On November 26, 2014, The Federal Trade Commission approved GlaxoSmithKline's (NYSE:GSK) proposed acquisition of Novartis' (NYSE:NVS) vaccines business and the proposed creation of a consumer healthcare joint venture between the two firms.
  2. On November 26, 2014, The Federal Trade Commission and the European Commission approved the merger between Medtronic (NYSE:MDT) and Covidien plc (COV) with the proviso that Covidien divest its drug-coated catheter business before completing the transaction. Covidien agreed to sell the business for $30M to Spectranetics (NASDAQ:SPNC) several weeks ago.

Closed Deals:

  1. The acquisition of Bally Technologies (NYSE:BYI) by Scientific Games Corporation (NASDAQ:SGMS) on November 24, 2014. It took 115 days for this deal to be completed.
  2. The acquisition of Kinder Morgan Energy Partners (NYSE:KMP) by Kinder Morgan (NYSE:KMI) on November 26, 2014. It took 108 days for this deal to be completed.
  3. The acquisition of Kinder Morgan Management (NYSE:KMR) by Kinder Morgan (KMI) on November 26, 2014. It took 108 days for this deal to be completed.
  4. The acquisition of El Paso Pipeline Partners (NYSE:EPB) by Kinder Morgan (KMI) on November 26, 2014. It took 108 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

BHI 11/16/2014 Halliburton Company (NYSE:HAL) $66.26 $57.00 12/31/2015 16.25% 15.02%
FFKY 04/22/2014 Community Bank Shares of Indiana Inc. (CBIN) $4.12 $3.60 10/30/2014 14.54% -165.82%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.60 12/31/2014 11.25% 136.88%
LO 07/15/2014 Reynolds American Inc. (NYSE:RAI) $69.67 $63.14 06/30/2015 10.35% 17.90%
TWC 02/13/2014 Comcast Corporation (NASDAQ:CMCSA) $163.99 $149.28 12/31/2014 9.85% 119.89%
DTV 05/18/2014 AT&T, Inc. (NYSE:T) $95.00 $87.71 05/31/2015 8.31% 16.76%
HCBK 08/27/2012 M&T Bank Corporation (NYSE:MTB) $10.59 $9.79 12/31/2014 8.17% 99.35%
LIN 03/22/2014 Media General, Inc. (NYSE:MEG) $25.97 $24.13 03/31/2015 7.63% 23.19%
IGT 07/16/2014 GTECH S.p.A. (OTCPK:GTKYY) $18.25 $17.03 06/30/2015 7.16% 12.39%
AGN 11/16/2014 Actavis plc (NASDAQ:ACT) $228.89 $213.89 06/30/2015 7.01% 12.13%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ BHI 11/16/2014 Halliburton Company Cash Plus Stock N/A $66.26 $57.00 8,822,441 12/31/2015 16.25% 15.02%
+ FFKY 04/22/2014 Community Bank Shares of Indiana Inc. All Stock $17.9 million $4.12 $3.60 300 10/30/2014 14.54% 0.00%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.60 7,600 12/31/2014 11.25% 136.88%
+ LO 07/15/2014 Reynolds American Inc. Cash Plus Stock $27.4 billion $69.67 $63.14 1,037,516 06/30/2015 10.35% 17.90%
+ TWC 02/13/2014 Comcast Corporation All Stock $45.2 billion $163.99 $149.28 1,160,622 12/31/2014 9.85% 119.89%
+ DTV 05/18/2014 AT&T, Inc. Special Conditions $48.5 billion $95.00 $87.71 899,268 05/31/2015 8.31% 16.76%
+ HCBK 08/27/2012 M&T Bank Corporation All Stock $3.7 billion $10.59 $9.79 1,020,652 12/31/2014 8.17% 99.35%
+ LIN 03/22/2014 Media General, Inc. Special Conditions $2.6 billion $25.97 $24.13 57,573 03/31/2015 7.63% 23.19%
+ IGT 07/16/2014 GTECH S.p.A. Special Conditions $6.4 billion $18.25 $17.03 934,868 06/30/2015 7.16% 12.39%
+ AGN 11/16/2014 Actavis plc Cash Plus Stock N/A $228.89 $213.89 869,813 06/30/2015 7.01% 12.13%
+ HCT 06/02/2014 Ventas, Inc. (NYSE:VTR) All Stock $2.6 billion $12.08 $11.33 2,092,904 12/31/2014 6.60% 80.28%
+ CPWR 09/02/2014 Thoma Bravo, LLC(N/A) All Cash $2.5 billion $10.92 $10.32 588,592 01/31/2015 5.81% 34.79%
+ WPZ 10/27/2014 Access Midstream Partners, L.P. (NYSE:ACMP) All Stock $50 billion $54.33 $51.74 1,073,988 01/31/2015 5.00% 29.91%
+ COV 06/15/2014 Medtronic, Inc. Cash Plus Stock $42.9 billion $105.81 $101.00 1,482,185 01/31/2015 4.76% 28.49%
+ DWSN 10/09/2014 TGC Industries Inc. (NASDAQ:TGE) All Stock N/A $14.12 $13.53 55,430 03/31/2015 4.39% 13.35%
+ APAGF 10/03/2014 Pluspetrol Resources Corporation (N/A) All Cash $427 million $14.50 $13.92 84,780 12/31/2014 4.17% 50.69%
+ SWY 03/06/2014 AB Acquisition LLC(N/A) Special Conditions N/A $36.15 $34.84 567,308 12/31/2014 3.76% 45.75%
+ VYFC 11/17/2014 BNC Bancorp (BNCN) Special Conditions $101.3 million $20.50 $19.76 420 06/30/2015 3.74% 6.48%
+ CIMT 11/24/2014 3D Systems Corporation All Cash $97 million $8.97 $8.67 209,554 03/31/2015 3.46% 10.52%
+ TRLA 07/28/2014 Zillow, Inc. (NASDAQ:Z) All Stock $3.5 billion $52.55 $50.83 133,365 03/31/2015 3.39% 10.30%
+ CMSB 09/25/2014 Putnam County Savings Bank (N/A) All Cash $25.4 million $13.25 $12.83 N/A 06/30/2015 3.27% 5.66%
+ CNL 10/20/2014 Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corporation (bcIMC)(N/A) All Cash $4.7 billion $55.37 $53.73 218,831 12/31/2015 3.05% 2.82%
+ VIAS 09/22/2014 TTM Technologies Inc. (NASDAQ:TTMI) Cash Plus Stock $927 million $16.10 $15.63 2,741 06/30/2015 3.02% 5.23%
+ SUSQ 11/12/2014 BB&T Corporation (NYSE:BBT) Cash Plus Stock $2.5 billion $13.56 $13.17 949,631 06/30/2015 2.96% 5.13%
+ HVB 11/05/2014 Sterling Bancorp. (NYSE:STL) All Stock $539 million $25.69 $25.02 18,930 06/30/2015 2.68% 4.63%
+ ESBF 10/29/2014 WesBanco Inc. (NASDAQ:WSBC) Cash Plus Stock $324.4 million $18.43 $17.96 9,897 06/30/2015 2.62% 4.54%
+ OABC 04/29/2014 Southside Bancshares Inc. (NASDAQ:SBSI) Cash Plus Stock $307 million $27.54 $26.87 17,251 12/31/2014 2.50% 30.38%
+ PTP 11/24/2014 RenaissanceRe Holdings Ltd. Special Conditions $1.9 billion $76.00 $74.17 167,695 06/30/2015 2.47% 4.27%
+ DRIV 10/23/2014 Siris Capital Group, LLC (N/A) All Cash $840 million $26.00 $25.39 211,099 03/31/2015 2.40% 7.31%
+ HBNK 11/04/2014 Berkshire Hills Bancorp Inc. (NASDAQ:BHLB) All Stock $109 million $20.56 $20.08 1,481 05/15/2015 2.38% 5.26%
+ DRC 09/21/2014 Siemens (N/A) All Cash $7.6 billion $83.00 $81.11 2,171,958 06/30/2015 2.33% 4.03%
+ PEOP 08/05/2014 Independent Bank Corp. (NASDAQ:INDB) All Stock $130.6 million $21.89 $21.39 2,085 03/31/2015 2.33% 7.08%
+ TRW 09/15/2014 ZF Friedrichshafen AG ("ZF") (N/A) All Cash $13.5 billion $105.60 $103.40 296,279 06/30/2015 2.13% 3.68%
+ AVIV 10/31/2014 Omega Healthcare Investors Inc. (NYSE:OHI) All Stock $3 billion $34.40 $33.70 209,542 03/31/2015 2.07% 6.30%
+ TEG 06/23/2014 Wisconsin Energy Corp. (NYSE:WEC) Cash Plus Stock $9.1 billion $74.30 $72.84 151,758 06/30/2015 2.01% 3.47%
+ BKYF 09/08/2014 BB&T Corporation (BBT) Cash Plus Stock $363 million $47.46 $46.61 7,339 03/31/2015 1.83% 5.57%
+ FRNK 07/15/2014 Towne Bank (NASDAQ:TOWN) All Stock $275 million $20.17 $19.87 9,897 12/31/2014 1.53% 18.61%
+ APL 10/13/2014 Targa Resources Partners LP (NYSE:NGLS) Cash Plus Stock $5.8 billion $33.31 $32.84 675,762 03/31/2015 1.44% 4.39%
+ ROC 07/15/2014 Albemarle Corporation (NYSE:ALB) Cash Plus Stock $6.2 billion $79.01 $77.95 266,197 03/31/2015 1.36% 4.12%
+ CFN 10/05/2014 Becton, Dickinson and Company (NYSE:BDX) Cash Plus Stock $12.2 billion $59.90 $59.17 893,304 06/30/2015 1.24% 2.14%
+ SAPE 11/03/2014 Publicis Groupe (N/A) All Cash $3.7 billion $25.00 $24.70 646,793 03/31/2015 1.21% 3.69%
+ CVD 11/03/2014 Laboratory Corp. of America Holdings (NYSE:LH) Cash Plus Stock $5.6 billion $103.87 $102.62 1,247,780 03/31/2015 1.21% 3.69%
+ XWES 11/04/2014 EnerNOC, Inc. (NASDAQ:ENOC) All Cash N/A $5.50 $5.44 2,210 01/15/2015 1.10% 8.95%
+ GTIV 10/09/2014 Kindred Healthcare Inc. (NYSE:KND) Cash Plus Stock $1.8 billion $19.61 $19.41 60,060 03/31/2015 1.04% 3.16%
+ FRF 08/12/2014 Tiptree Financial Inc. (NASDAQ:TIPT) All Cash $218 million $10.00 $9.91 692 01/31/2015 0.91% 5.43%
+ KOG 07/13/2014 Whiting Petroleum Corp. (NYSE:WLL) All Stock $6 billion $7.39 $7.33 6,583,043 12/31/2014 0.86% 10.51%
+ CHYR 11/17/2014 Vector Capital (N/A) All Cash N/A $2.82 $2.80 37,685 03/31/2015 0.71% 2.17%
+ ESYS 11/04/2014 Lindsay Corporation (NYSE:LNN) All Cash $70.5 million $17.50 $17.38 6,700 01/31/2015 0.69% 4.13%
+ MGAM 09/08/2014 Global Cash Access Holdings, Inc. (GCA) All Cash $1.2 billion $36.50 $36.29 288,621 03/31/2015 0.58% 1.76%
+ OILT 11/12/2014 Enterprise Products Partners L.P. (NYSE:EPD) All Stock N/A $48.54 $48.27 54,592 03/31/2015 0.56% 1.71%
+ SWS 04/01/2014 Hilltop Holdings Inc. (NYSE:HTH) Cash Plus Stock $260 million $7.03 $6.99 20,879 12/31/2014 0.53% 6.41%
+ GRT 09/16/2014 Washington Prime Group Inc. (NYSE:WPG) Cash Plus Stock $4.3 billion $13.83 $13.76 867,777 03/31/2015 0.49% 1.48%
+ TQNT 02/24/2014 RF Micro Devices Inc. (RFMD) All Stock $1.6 billion $24.47 $24.37 1,276,030 12/31/2014 0.42% 5.08%
+ PL 06/03/2014 Dai-ichi Life Insurance Company (N/A) All Cash $5.7 billion $70.00 $69.71 220,466 01/31/2015 0.42% 2.49%
+ PSMI 08/22/2014 Murata Electronics North America, Inc.(N/A) All Cash $471 million $12.50 $12.45 75,682 01/31/2015 0.40% 2.40%
+ TAM 09/11/2014 Eastman Chemical Co. (NYSE:EMN) All Cash $2.8 billion $26.00 $25.91 69,168 12/31/2014 0.35% 4.23%
+ PIKE 08/04/2014 Court Square Capital Partners & J. Eric Pike, the Company's Chairman and Chief Executive Officer (N/A) All Cash N/A $12.00 $11.96 81,285 12/31/2014 0.33% 4.07%
+ OPLK 11/19/2014 Koch Industries, Inc.(N/A) All Cash $445 million $24.25 $24.17 149,937 03/31/2015 0.33% 1.01%
+ PENX 10/15/2014 Ingredion Incorporated (NYSE:INGR) All Cash $340 million $19.00 $18.94 7,913 12/31/2014 0.32% 3.85%
+ IRF 08/20/2014 Infineon Technologies AG (OTCQX:IFNNY) All Cash $2.4 billion $40.00 $39.88 855,052 01/31/2015 0.30% 1.80%
+ CQB 10/27/2014 Cutrale-Safra group(N/A) All Cash $1.3 billion $14.50 $14.46 277,980 01/31/2015 0.28% 1.66%
+ CNQR 09/18/2014 SAP SE (NYSE:SAP) All Cash $8.3 billion $129.00 $128.81 230,902 03/31/2015 0.15% 0.45%
+ CNVR 09/11/2014 Alliance Data Systems Corporation (NYSE:ADS) Special Conditions $2.3 billion $35.00 $35.02 344,664 12/31/2014 -0.06% -0.69%
+ TIBX 09/29/2014 Vista Equity Partners(N/A) All Cash $4.3 billion $24.00 $24.03 1,390,655 12/31/2014 -0.12% -1.52%
+ AMRE 10/31/2014 Edens Investment Trust(N/A) All Cash N/A $26.55 $26.63 176,779 03/31/2015 -0.30% -0.91%
+ COBK 09/10/2014 Cape Bancorp, Inc. (NASDAQ:CBNJ) All Stock $55 million $13.15 $13.19 N/A 03/31/2015 -0.34% -1.02%
+ NBTF 08/04/2014 Peoples Bancorp Inc. (NASDAQ:PEBO) Cash Plus Stock $109 million $30.31 $30.54 N/A 03/31/2015 -0.75% -2.28%
+ POM 04/30/2014 Exelon Corporation (NYSE:EXC) All Cash $7.2 billion $27.25 $27.50 548,811 09/30/2015 -0.91% -1.10%
+ SMPL 09/29/2014 HomeStreet, Inc. (NASDAQ:HMST) All Stock N/A $16.31 $16.59 4,470 03/31/2015 -1.69% -5.13%
+ BTUI 10/22/2014 Amtech Systems Inc. (NASDAQ:ASYS) All Stock N/A $2.91 $2.98 1,086 03/31/2015 -2.26% -6.89%
+ OVRL 05/15/2014 Sphere 3D Corporation (NASDAQ:ANY) All Stock $81.13 million $3.64 $3.78 62,804 12/31/2014 -3.67% -44.67%
+ AUXL 10/09/2014 Endo International plc (NASDAQ:ENDP) Special Conditions $2.6 billion $33.25 $34.56 357,460 06/30/2015 -3.79% -6.56%
+ GECR 06/23/2014 State Bank Financial Corporation (NASDAQ:STBZ) Special Conditions $82 million $22.35 $23.59 N/A 03/31/2015 -5.26% -15.99%
+ FDO 07/28/2014 Dollar Tree, Inc. (NASDAQ:DLTR) Special Conditions $9.2 billion $74.50 $79.05 341,124 01/31/2015 -5.76% -34.44%
+ WMGI 10/27/2014 Tornier N.V. (NASDAQ:TRNX) All Stock $1.72 billion $27.51 $29.29 403,609 06/30/2015 -6.06% -10.48%
+ GFIG 07/30/2014 CME Group (N/A) All Cash N/A $4.55 $4.98 126,424 01/31/2015 -8.63% -51.67%
+ RNA 11/24/2014 BioMarin Pharmaceutical Inc. All Cash $680 million $17.75 $19.77 400,043 03/31/2015 -10.22% -31.08%
+ ATLS 10/13/2014 Targa Resources Corp. (NYSE:TRGP) Cash Plus Stock $1.9 billion $29.77 $35.48 610,106 03/31/2015 -16.10% -48.97%

Voluntary Disclosure: I hold a long position in Safeway (NYSE:SWY).

Disclosure: See author's portfolio holdings here.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.