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Merger Arbitrage Mondays - Multiple 'Deals In The Works' Get Confirmed


  • Merger activity increased last week with four new deals announced.
  • The acquisition of QIAGEN N.V. by Thermo Fisher Scientific for $11.5 billion.
  • Genworth Financial and China Oceanwide Holdings Group expect to close the transaction by the end of the month.

Merger activity increased last week with four new deals announced and two deals closing. Out of the four deals announced, three were cash deals and one was an all-stock deal.

The acquisition of Forty Seven (FTSV) by Gilead Sciences (GILD) was the first deal announced last week. FTSV stock rocketed after the deal was announced. Gilead agreed to pay $95.50 for each Forty Seven share, a 64.7 premium to Friday's closing price of $58.00. This deal will help Gilead expand its cancer drug pipeline. Through the addition of Forty Seven’s investigational lead product candidate, magrolimab, the acquisition will strengthen Gilead’s immuno-oncology research and development portfolio. Many investors view Gilead as a biotech private equity firm that does not charge fees and uses its capital and cash flows to fuel acquisitions. This is the third-largest deal by Gilead after its $11 billion acquisition of Pharmasset in 2011, its acquisition of Kite Pharmaceuticals for nearly $12 billion in 2017 and now yet another multi-billion acquisition.

This is the first time since we started tracking potential deals in the "Deals in the Works" section of our website more than three years ago that all the confirmed deals that were announced last week had been "deals in the works".

Gilead Sciences had approached cancer therapy company Forty Seven with a takeover offer on February 27, 2020. On March 2, 2020, the deal was confirmed. Forty Seven stock appreciated from $48.79 on February 27 to $93.91 after the deal was announced on March 2. On September 11, 2019, according to Reuters, the Donerail Group, an investment firm led by former activist hedge fund Starboard Value LP executive William Wyatt, had built a stake in Mobile Mini (MINI) and was pushing the company to explore a sale. On March 2, 2020, Mobile Mini agreed to

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Comprehensive tools and detailed analysis for event-driven investors

I am an entrepreneur and investor with a focus on event driven strategies including merger arbitrage, spinoffs, (legal) insider trading, buybacks and SPACs. I was one of the earliest contributors on Seeking Alpha and started publishing here in 2005. For more than a decade I have been writing every week about M&A and interesting insider transactions. My work has been mentioned in Barron's, Dow Jones, BNN Bloomberg and other publications.  

I have been an active investor for more than two decades and my background in technology has helped me built tools that inform my investing process, especially as it relates to event-driven strategies that require updated data and processes. The focus on my Inside Arbitrage service is to provide investors with the right combination of tools and analysis to help them take advantage of strategies that can perform well across market cycles.  

Analyst’s Disclosure: I am/we are long MLNX. 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.

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