Merger Arbitrage Mondays - April 13, 2015

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Includes: BALT, EXL, IGT
by: Asif Suria

Summary

Merger activity decreased last week with three new deals announced and one deal closing.

New Deals: OEPM, BALT, EXL.

Closed Deals: IGT.

Merger activity decreased last week with three new deals announced and one deal 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 2015 59
Total Number of Deals Not Completed in 2015 1
Total Number of Pending Deals
Cash Deals 33
Stock Deals 18
Stock & Cash Deals 15
Special Conditions 5
Total Number of Pending Deals 71
Total Deal Size $594.97 billion

New Deals:

  1. The acquisition of QEP Midstream Partners (NYSE:QEPM) by Tesoro Logistics (TLLP) in an all stock deal. Under the terms of the agreement, QEPM public unit holders will receive 0.3088 TLLP common units for each QEPM Common Unit held.
  2. The acquisition of Baltic Trading Limited (NYSE:BALT) by Genco Shipping & Trading Limited (OTCPK:GSKNF) in an all stock deal. Under the terms of the agreement, Baltic Trading shareholders will receive 0.216 shares of Genco common stock for each share of Baltic Trading common stock.
  3. The acquisition of Excel Trust (NYSE:EXL) by Blackstone Property Partners (NYSE:BX) for $2 billion or $15.85 per share in cash.

Deal Updates:

  1. On April 6, 2015, Hudson City Bancorp (NASDAQ:HCBK) announced today that it had been advised by M&T Bank Corporation (NYSE:MTB), that the Federal Reserve Board will not act on M&T's merger application before the current termination date of April 30, 2015 provided for in the Agreement and Plan of Merger, as amended, after which either party can terminate the transaction if the closing has not occurred. As a result, the merger will not close by the previously announced target closing date of May 1, 2015.
  2. On April 6, 2015, Home Loan Servicing Solutions (NASDAQ:HLSS) and New Residential Investment (NYSE:NRZ) announced that they had entered into a purchase agreement (the "Asset Purchase Agreement") and mutually terminated the merger agreement originally announced on February 22, 2015.

Closed Deals:

  1. The acquisition of International Game Technology (NYSE:IGT) by GTECH S.p.A. (OTCPK:GTKYY) on April 7, 2015. It took 265 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

ODP 02/04/2015 Staples, Inc. (SPLS) $10.91 $9.27 12/31/2015 17.67% 24.62%
CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) $7.52 $6.48 03/31/2015 16.00% -449.09%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.58 12/31/2014 12.66% -44.86%
HCBK 08/27/2012 M&T Bank Corporation (MTB) $10.45 $9.58 04/30/2015 9.11% 195.54%
DTV 05/18/2014 AT&T, Inc. (T) $95.00 $87.32 05/31/2015 8.80% 66.88%
INXN 03/09/2015 Telecity Group plc (TCY.L) $32.12 $29.62 12/31/2015 8.45% 11.77%
TWC 02/13/2014 Comcast Corporation (CMCSA) $171.95 $160.81 06/30/2015 6.93% 32.43%
BHI 11/16/2014 Halliburton Company (HAL) $70.81 $66.54 12/31/2015 6.42% 8.94%
HLSS 02/22/2015 New Residential Investment Corp. (NRZ) $18.25 $17.18 06/30/2015 6.23% 29.14%
API 02/02/2015 Luna Innovations Incorporated (LUNA) $0.44 $0.41 06/30/2015 6.20% 29.01%

List of all pending deals:

  Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $10.91 $9.27 6,765,360 12/31/2015 17.67% 24.62%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $7.52 $6.48 42,894 03/31/2015 16.00% 0.00%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.58 6,500 12/31/2014 12.66% 0.00%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $10.45 $9.58 8,038,444 04/30/2015 9.11% 195.54%
+ DTV 05/18/2014 AT&T, Inc. (T) Special Conditions $48.5 billion $95.00 $87.32 1,977,897 05/31/2015 8.80% 66.88%
+ INXN 03/09/2015 Telecity Group plc (TCY.L) All Stock N/A $32.12 $29.62 474,821 12/31/2015 8.45% 11.77%
+ TWC 02/13/2014 Comcast Corporation (CMCSA) All Stock $45.2 billion $171.95 $160.81 3,201,543 06/30/2015 6.93% 32.43%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $70.81 $66.54 2,661,453 12/31/2015 6.42% 8.94%
+ API 02/02/2015 Luna Innovations Incorporated (LUNA) All Stock N/A $0.44 $0.41 20,719 06/30/2015 6.20% 29.01%
+ GFIG 07/30/2014 BGC Partners, Inc. (BGCP) All Cash $778 million $6.10 $5.76 814,617 04/30/2015 5.90% 126.74%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $31.74 458,177 12/31/2015 5.55% 7.72%
+ LNBB 12/15/2014 Northwest Bancshares, Inc. (NWBI) Special Conditions $183.3 million $18.70 $17.72 13,096 06/30/2015 5.53% 25.88%
+ SQBK 03/02/2015 PacWest Bancorp (PACW) All Stock $849 million $27.98 $26.71 61,919 12/31/2015 4.76% 6.63%
+ ISSI 03/12/2015 a Chinese consortium of investors led by Summitview Capital (N/A) All Cash N/A $19.25 $18.38 704,088 09/30/2015 4.73% 10.16%
+ CYN 01/22/2015 Royal Bank of Canada (RY) Cash Plus Stock $5.4 billion $94.63 $91.03 575,063 12/31/2015 3.96% 5.51%
+ GAME 04/03/2015 Capitalhold Limited and Capitalcorp Limited (N/A) All Cash $1.9 billion $7.10 $6.85 1,276,239 12/31/2015 3.65% 5.08%
+ CTRX 03/30/2015 OptumRx (N/A) All Cash $12.8 billion $61.50 $59.61 4,469,825 12/31/2015 3.17% 4.42%
+ OWW 02/12/2015 Expedia Inc. (EXPE) All Cash $1.6 billion $12.00 $11.67 2,022,827 06/30/2015 2.83% 13.23%
+ WMGI 10/27/2014 Tornier N.V. (TRNX) All Stock $1.72 billion $27.04 $26.30 540,155 06/30/2015 2.82% 13.18%
+ PPO 02/23/2015 Asahi Kasei Corporation (OTCPK:AHKSY) All Cash $3.2 billion $60.50 $58.89 1,080,970 09/30/2015 2.73% 5.87%
+ TEG 06/23/2014 Wisconsin Energy Corp. (WEC) Cash Plus Stock $9.1 billion $74.59 $72.71 207,866 06/30/2015 2.58% 12.07%
+ HSP 02/05/2015 Pfizer Inc. (PFE) All Cash $17 billion $90.00 $87.75 2,005,126 12/31/2015 2.56% 3.57%
+ LO 07/15/2014 Reynolds American Inc. (RAI) Cash Plus Stock $27.4 billion $72.13 $70.51 7,211,038 06/30/2015 2.30% 10.76%
+ FSL 03/02/2015 NXP Semiconductors NV (NXPI) Cash Plus Stock $16.7 billion $41.93 $41.00 1,175,427 12/31/2015 2.27% 3.17%
+ POM 04/30/2014 Exelon Corporation (EXC) All Cash $7.2 billion $27.25 $26.75 595,843 09/30/2015 1.87% 4.01%
+ 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 $54.40 260,864 12/31/2015 1.78% 2.48%
+ BBNK 03/09/2015 Western Alliance Bancorporation (WAL) Cash Plus Stock $425 million $26.25 $25.85 21,310 12/31/2015 1.57% 2.18%
+ TLM 12/15/2014 Repsol S.A. (N/A) All Cash $13 billion $8.00 $7.88 10,448,806 06/30/2015 1.52% 7.13%
+ URZ 01/05/2015 Energy Fuels Inc. (UUUU) All Stock $150 million $1.05 $1.03 325,152 06/30/2015 1.50% 7.04%
+ SIBC 12/30/2014 First NBC Bank Holding Company (NBCB) All Cash $49 million $21.25 $20.95 153 06/30/2015 1.43% 6.70%
+ QEPM 04/06/2015 Tesoro Logistics LP (TLLP) All Stock N/A $17.45 $17.21 243,731 12/31/2015 1.38% 1.92%
+ SUSQ 11/12/2014 BB&T Corporation (BBT) Cash Plus Stock $2.5 billion $13.93 $13.74 1,471,862 09/30/2015 1.36% 2.92%
+ HBOS 12/10/2014 Renasant Corp. (RNST) All Stock $258 million $27.75 $27.38 12,051 09/30/2015 1.36% 2.91%
+ DRC 09/21/2014 Siemens (N/A) All Cash $7.6 billion $83.00 $81.97 659,075 06/30/2015 1.26% 5.88%
+ XLS 02/06/2015 Harris Corporation (HRS) Cash Plus Stock $4.56 billion $24.93 $24.62 1,102,259 06/30/2015 1.25% 5.84%
+ BALT 04/08/2015 Genco Shipping & Trading Limited (GSKNF) All Stock N/A $1.45 $1.43 2,145,545 09/30/2015 1.20% 2.58%
+ ADVS 02/02/2015 SS&C Technologies Holdings, Inc. (SSNC) All Cash $2.7 billion $44.25 $43.73 1,023,684 06/30/2015 1.19% 5.56%
+ MIG 12/30/2014 Fosun International Limited (N/A) All Cash $433 million $8.65 $8.55 130,699 12/31/2015 1.17% 1.63%
+ RTI 03/09/2015 Alcoa Inc. (AA) All Stock $1.5 billion $37.23 $36.82 389,433 08/15/2015 1.13% 3.31%
+ PCYC 03/04/2015 AbbVie Inc. (NYSE:ABBV) All Cash $21 billion $261.25 $258.35 835,467 06/30/2015 1.12% 5.25%
+ SIAL 09/22/2014 Merck KGaA (N/A) All Cash $17 billion $140.00 $138.45 842,436 06/30/2015 1.12% 5.24%
+ ALLB 03/03/2015 WSFS Financial Corp. (WSFS) All Stock $92 million $21.67 $21.44 6,806 12/31/2015 1.07% 1.49%
+ VIAS 09/22/2014 TTM Technologies Inc. (TTMI) Cash Plus Stock $927 million $17.78 $17.60 3,743 06/30/2015 1.00% 4.67%
+ ONFC 02/24/2015 Community Bank System Inc. (CBU) All Stock $142 million $19.75 $19.55 23,054 07/31/2015 1.00% 3.34%
+ LTM 03/16/2015 Leonard Green & Partners and TPG (N/A) All Cash $4 billion $72.10 $71.40 613,720 09/30/2015 0.98% 2.10%
+ MVNR 03/02/2015 Mitel Networks Corporation (MITL) Cash Plus Stock $560 million $17.82 $17.69 2,451,546 06/30/2015 0.75% 3.52%
+ MWV 01/26/2015 Rock-Tenn Company (RKT) All Stock $16 billion $49.43 $49.07 868,599 06/30/2015 0.73% 3.42%
+ ENTR 02/03/2015 MaxLinear, Inc. (MXL) Cash Plus Stock $287 million $3.07 $3.05 176,342 06/30/2015 0.73% 3.41%
+ RGP 01/26/2015 Energy Transfer Partners, L.P. (ETP) Cash Plus Stock $18 billion $22.86 $22.74 1,618,513 06/30/2015 0.54% 2.51%
+ HVB 11/05/2014 Sterling Bancorp. (STL) All Stock $539 million $25.52 $25.39 15,881 06/30/2015 0.50% 2.34%
+ TRW 09/15/2014 ZF Friedrichshafen AG ("ZF") (N/A) All Cash $13.5 billion $105.60 $105.08 533,902 06/30/2015 0.49% 2.32%
+ HPTX 03/30/2015 Horizon Pharma plc (HZNP) All Cash $1.1 billion $46.00 $45.79 628,969 06/30/2015 0.46% 2.15%
+ KFX 03/24/2015 Lexmark International Inc. (LXK) All Cash $1 billion $11.00 $10.95 151,188 06/30/2015 0.46% 2.14%
+ ASPX 03/30/2015 Teva Pharmaceutical Industries Limited (TEVA) All Cash $3.5 billion $101.00 $100.58 1,102,241 06/30/2015 0.42% 1.95%
+ VTSS 03/18/2015 Microsemi Corporation (MSCC) All Cash $389 million $5.28 $5.26 1,529,820 06/28/2015 0.38% 1.83%
+ ARUN 03/02/2015 Hewlett-Packard Company (HPQ) All Cash $2.7 billion $24.67 $24.58 1,303,901 10/31/2015 0.37% 0.66%
+ RVBD 12/15/2014 Thoma Bravo, LLC and Teachers& Private Capital (N/A) All Cash $3.6 billion $21.00 $20.94 912,034 06/30/2015 0.29% 1.34%
+ ELX 02/25/2015 Avago Technologies Limited (AVGO) All Cash $609 million $8.00 $7.98 429,268 11/01/2015 0.25% 0.45%
+ EXL 04/10/2015 Blackstone Property Partners L.P. (BX) All Cash $2 billion $15.85 $15.82 15,032,136 12/31/2015 0.19% 0.26%
+ CMSB 09/25/2014 Putnam County Savings Bank (N/A) All Cash $25.4 million $13.25 $13.24 103 06/30/2015 0.08% 0.35%
+ ICEL 03/30/2015 FUJIFILM Holdings Corporation (N/A) All Cash $307 million $16.50 $16.49 263,157 06/30/2015 0.06% 0.28%
+ HBNK 11/04/2014 Berkshire Hills Bancorp Inc. (BHLB) All Stock $109 million $22.29 $22.29 1,110 05/15/2015 0.01% 0.06%
+ VYFC 11/17/2014 BNC Bancorp (BNCN) Special Conditions $101.3 million $20.50 $20.50 2,300 06/30/2015 0.00% 0.00%
+ BKYF 09/08/2014 BB&T Corporation (BBT) Cash Plus Stock $363 million $48.93 $48.99 11,160 03/31/2015 -0.12% 3.33%
+ MRH 03/31/2015 Endurance Specialty Holdings Ltd. (ENH) Cash Plus Stock $1.83 billion $39.27 $39.61 408,477 09/30/2015 -0.85% -1.83%
+ NCFT 03/30/2015 Fortune Brands Home & Security, Inc. (FBHS) All Cash $600 million $25.50 $25.73 84,525 06/30/2015 -0.89% -4.18%
+ FSGI 03/25/2015 Atlantic Capital Bancshares, Inc. (N/A) All Cash $160 million $2.35 $2.45 49,757 10/31/2015 -4.08% -7.41%
+ PZG 12/17/2014 Coeur Mining, Inc. (CDE) All Stock $146 million $1.05 $1.12 1,211,503 06/30/2015 -6.22% -29.11%
+ FDO 07/28/2014 Dollar Tree, Inc. (DLTR) Special Conditions $9.2 billion $74.50 $79.74 424,857 03/31/2015 -6.57% 184.50%
+ CRRC 02/05/2015 R.R. Donnelley & Sons Company (RRD) All Cash $261 million $23.00 $24.96 161,105 06/30/2015 -7.85% -36.75%

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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.

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