Merger Arbitrage Mondays - March 11, 2019

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Includes: AMNB, AST, BBX, BIIB, BMY, BTX, BXG, CELG, CIVI, CMTA, ENTG, FITB, FNF, GNW, GPIC, HMTA, IBM, ILMN, INUV, LKSD, MBFI, MKGAY, NITE, NSU, NTRI, PACB, QUAD, RHT, S, SBGI, SPA, STC, TISA, TMUS, TRCO, TVTY, VSM, ZIJMF
by: Asif Suria
Summary

Merger activity remained steady last week with two new deals announced.

The acquisition of Nightstar Therapeutics by Biogen.

Bristol-Myers Squibb urged investors to support its purchase of Celgene.

Merger activity remained steady last week with two new deals announced and five pending deals closing.

Deal Statistics

Total Number of Deals Closed in 2019 49
Total Number of Deals Not Completed in 2019 1
Total Number of Pending Deals
Cash Deals 28
Stock Deals 19
Stock & Cash Deals 11
Special Conditions 5
Total Number of Pending Deals 63
Total Deal Size $691.05 billion

New Deals

  1. The acquisition of Bluegreen Vacations Corporation (NYSE:BXG) by BBX Capital Corporation (NYSE:BBX) for $1.99 billion or $16.00 per share in cash.
  2. The acquisition of Nightstar Therapeutics (NASDAQ:NITE) by Biogen (NASDAQ:BIIB) for $567.68 million or $25.50 per share in cash.

Deal Updates

  1. On March 5, 2019, Sinclair Broadcast Group (NASDAQ:SBGI) noted that the Federal Communications Commission released the decision of its Administrative Law Judge dismissing with prejudice the July 19, 2018, Hearing Designation Order related to Sinclair's terminated acquisition of 100% of the issued and outstanding shares of Tribune Media Company (NYSE:TRCO).
  2. On March 6, 2019, Clementia Pharmaceuticals (NASDAQ:CMTA) announced that it has obtained an interim order from the Québec Superior Court in connection with the previously announced plan of arrangement with Ipsen (OTCPK:IPSEY).
  3. On March 6, 2019, Bristol-Myers Squibb (NYSE:BMY) urged investors to support its purchase of Celgene (NASDAQ:CELG) amid public resistance from top shareholders.
  4. On March 7, 2019, Fifth Third Bancorp (NASDAQ:FITB) and MB Financial (NASDAQ:MBFI) jointly announced that Fifth Third Bancorp has received all necessary regulatory approvals for completion of the transactions.
  5. On March 7, 2019, American National Bankshares (NASDAQ:AMNB) and HomeTown Bankshares Corporation (OTC:HMTA) jointly announced the receipt of regulatory approvals from the Office of the Comptroller of the Currency, the Federal Reserve Bank of Richmond, and the Virginia State Corporation Commission to move forward with the proposed merger of HomeTown with and into American.
  6. On March 8, 2019, the Federal Communications Commission paused its months-long review of the proposed merger between Sprint (NYSE:S) and T-Mobile U.S. (NASDAQ:TMUS) to examine what it called "significant new information".
  7. On March 8, 2019, Entegris (NASDAQ:ENTG) and Versum Materials (NYSE:VSM) highlighted additional benefits from their planned all-share merger, while rival bidder Merck KGaA (OTCPK:MKGAY) said it had brought in Goldman Sachs to help with its counter offer.

Closed Deals

  1. The acquisition of Sparton Corporation (NYSE:SPA) by an affiliate of Cerberus Capital Management on March 4, 2019. It took 82 days for this deal to be completed.
  2. The acquisition of Nevsun Resources (NYSEMKT:NSU) by Zijin Mining Group (OTCPK:ZIJMF) on March 8, 2019. It took 184 days for this deal to be completed.
  3. The acquisition of Civitas Solutions (NYSE:CIVI) by funds advised by Centerbridge Partners on March 8, 2019. It took 80 days for this deal to be completed.
  4. The acquisition of Asterias Biotherapeutics (NYSEMKT:AST) by BioTime (NYSEMKT:BTX) on March 8, 2019. It took 120 days for this deal to be completed.
  5. The acquisition of Nutrisystem (NASDAQ:NTRI) by Tivity Health (NASDAQ:TVTY) on March 8, 2019. It took 88 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol AnnouncedDate AcquiringCompany ClosingPrice LastPrice ClosingDate Profit AnnualizedProfit
INUV 11/05/2018 ConversionPoint Technologies, Inc. (N/A) $2.22 $1.28 06/30/2019 73.44% 241.48%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.63 03/15/2019 49.59% 4524.79%
CELG 01/03/2019 Bristol-Myers Squibb Company (BMY) $101.39 $84.46 09/30/2019 20.04% 36.04%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.25 $6.10 06/30/2019 18.78% 61.77%
STC 03/19/2018 Fidelity National Financial, Inc. (NYSE:FNF) $47.66 $42.69 06/30/2019 11.64% 38.29%
PACB 11/01/2018 Illumina, Inc. (NASDAQ:ILMN) $8.00 $7.29 06/30/2019 9.74% 32.03%
LKSD 10/31/2018 Quad/Graphics, Inc. (NYSE:QUAD) $7.64 $7.16 06/30/2019 6.67% 21.93%
RHT 10/28/2018 IBM (NYSE:IBM) $190.00 $180.71 12/31/2019 5.14% 6.36%
GPIC 11/27/2018 Angel Holdings Godo Kaisha (N/A) $13.75 $13.2 06/30/2019 4.17% 13.70%
TISA 02/04/2019 Thoma Bravo (N/A) $0.86 $0.8302 03/31/2019 3.59% 65.51%

Disclosure: I am/we are long CELG, BMY, FNSR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: I hold long positions in Celgene, Bristol-Myers Squibb and Finisar. 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.