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Boeing Reunites with Spirit - Merger Arbitrage Mondays - InsideArbitrage. Spirit Aerosystems Holdings Inc. (SPR): $34.03 Market Cap: $3.94 B Deal Size: $8.3 B The Boeing Company (BA) has faced significant challenges since the January mid-air panel blowout of a 737 MAX plane, which also affected its supplier Spirit AeroSystems (SPR), the manufacturer of Boeing’s 737 fuselages and other airframe components. Boeing has been searching for a new CEO and has been under scrutiny by the Justice Department because of the two fatal crashes in 2018 and 2019 that killed 346 people. Among all this, Boeing announced a deal to acquire Spirit AeroSystems for $8.3 billion including debt, after months of talks between the U.S. planemaker and its supplier.
Only plus or premium subscribers can access this post. Spirit Aerosystems Holdings Inc. Market Cap: $3.94 B Deal Size: $8.3 B Among all this, Boeing announced a deal to acquire Spirit AeroSystems for $8.3 billion including debt, after months of talks between the U.S. planemaker and its supplier. Spirit Aerosystems Holdings Inc. Alaska Airlines To Acquire Hawaiian Airlines. Alaska Airlines To Acquire Hawaiian Airlines – Merger Arbitrage Mondays. JetBlue - Spirit Trial Completes Third Week - Merger Arbitrage Mondays - InsideArbitrage. Key Highlights Spirit Airlines shares surged more than 19% at the conclusion of the third week of the DOJ trial seeking to prevent the sale of the company to JetBlue Airways.Timber Pharmaceuticals filed for Chapter 11 bankruptcy protection following the termination of the merger agreement by LEO Pharma due to insufficient stockholder votes.Rithm Capital completed the acquisition of Sculptor Capital Management. Spirit Airlines Inc.
(SAVE) $12.43 Market Cap: $1.36 billion Enterprise Value: $7.03 billion The DOJ’s trial to block the sale of Spirit (SAVE) to JetBlue (JBLU) kicked off in Boston on October 31st before Judge William Young. Only plus or premium subscribers can access this post. Key Highlights Spirit Airlines Inc. Market Cap: $1.36 billion Enterprise Value: $7.03 billion The DOJ’s trial to block the sale of Spirit (SAVE) to JetBlue (JBLU) kicked off in Boston on October 31st before Judge William Young.
Only plus or premium subscribers can access this post. Key Highlights Key Highlights. JetBlue - Spirit Trial Completes Third Week - Merger Arbitrage Mondays - InsideArbitrage. The JetBlue-Spirit Trial Concludes - Merger Arbitrage Mondays - InsideArbitrage. Key Highlights JetBlue-Spirit trial ends with the judge seeking more divestitures.AbbVie to acquire Cerevel Therapeutics Holdings for $45 per share in cash.Macy’s receives a $21 per share buyout bid valued at $5.8 billion.
Spirit Airlines Inc. (SAVE) $14.55 Market Cap: $1.59 billion Enterprise Value: $7.26 billion The Justice Department, along with six U.S. states and the District of Columbia, filed a lawsuit in March contesting the acquisition of Spirit Airlines (SAVE) by JetBlue Airways (JBLU) on grounds of potential harm to competition. Only plus or premium subscribers can access this post. Key Highlights JetBlue-Spirit trial ends with the judge seeking more divestitures.AbbVie to acquire Cerevel Therapeutics Holdings for $45 per share in cash.Macy’s receives a $21 per share buyout bid valued at $5.8 billion.
Spirit Airlines Inc. Market Cap: $1.59 billion Enterprise Value: $7.26 billion Only plus or premium subscribers can access this post. Key Highlights Spirit Airlines Inc. Key Highlights. The Battle for Wyndham Hotels - Merger Arbitrage Mondays - InsideArbitrage. Happy New Year! Wishing all of you a wonderful 2024. Wyndham Hotels & Resorts (WH) $80.41 Considering M&A activity slowed down significantly during a holiday shortened week, I figured I would briefly touch upon a pre-merger situation.
The hostile acquisition of Wyndham Hotels & Resorts (WH) by Choice Hotels International (CHH) entered a new phase in late December when in an unusual move, Choice Hotels decided to start working with the FTC for regulatory approval of the deal. Choice Hotels has already engaged with institutional shareholders that hold over 40% of shares outstanding. We have been tracking this potential deal in our Deals In The Works (DITW) since May 23, 2023 when the Wall Street Journal reported that Choice wanted to buy Wyndham. The evolution of this potential deal was covered in the tool as follows: Only plus or premium subscribers can access this post. Happy New Year! Wyndham Hotels & Resorts (WH) $80.41 Only plus or premium subscribers can access this post. Alaska Airlines To Acquire Hawaiian Airlines - Merger Arbitrage Mondays - InsideArbitrage. Key Highlights Hawaiian Holdings (HA) to be acquired by Alaska Air Group (ALK) for $1.9 billion or $18 per share in cash.ImmunoGen (IMGN) to be acquired by AbbVie (ABBV) for $7.29 billion or $31.26 per share in cash.The European Commission issued Amazon (AMZN) a Statement of Objections regarding its proposed acquisition of iRobot Corporation (IRBT) Hawaiian Holdings, Inc.
(HA) $4.86 Market Cap: $250.94 million Enterprise Value: $1.16 billion Alaska Air Group (ALK) and Hawaiian Holdings (HA) entered into a definitive agreement on Sunday, December 3, 2023, under which Alaska Airlines will acquire Hawaiian Airlines for $18.00 per share in cash, representing a significant premium of over 270% to Hawaiian’s closing price of $4.86 on Friday, December 1, 2023. Only plus or premium subscribers can access this post. Key Highlights Hawaiian Holdings, Inc. Market Cap: $250.94 million Enterprise Value: $1.16 billion Only plus or premium subscribers can access this post. Key Highlights Key Highlights. Novartis Acquisition of MorphoSys. Novartis’ $2.9 Billion Acquisition of MorphoSys.
Mirati Therapeutics Clears Key Regulatory Hurdle - Merger Arbitrage Mondays - InsideArbitrage. Merry Christmas and Happy Holidays from the team at InsideArbitrage. We had expected merger activity to slow down the week before Christmas but the pace of new deals, potential deals and even hostile offers continued unabated. In this midst of all this activity, we launched a new community on InsideArbitrage for our Premium, Plus and Yield Guru subscribers that you can access here. With nine new topics and 37 responses in a single week, the community is already off to a great start and I think it will build over time as more of you participate and share ideas with your fellow investors.
A discussion about merger arb downside review where Bob shares his downside prices for several deals and his process in reaching those prices was particularly insightful. Mirati Therapeutics (MRTX) $58.94 Instead of discussing a specific deal, I am going to briefly discuss a deal with interesting optionality. Only plus or premium subscribers can access this post. Mirati Therapeutics (MRTX) $58.94. The Battle for Wyndham Hotels - Merger Arbitrage Mondays - InsideArbitrage. Cerevel Therapeutics Annualized Spread Approaching 14% - January 8, 2024 - InsideArbitrage.
Cerevel Therapeutics (CERE): $42.26 Cambridge, Massachusets based Cereval Therapeutics has experienced three significant event-driven situations in just five years. The company, which focuses on treatments for neurological conditions like schizophrenia, Parkinson’s, dementia epilepsy and depression, was spun out of Pfizer in October 2018, went public by merging into a SPAC in mid-2020 and inked a deal to be acquired by AbbVie (ABBV) last month. The deal was struck less than six months after biotech industry veteran Ron Renaud took on the top job at Cereval in June 2023. Mr. Renaud was previously the CEO of Translate Bio, which was acquired by Sanofi in September 2021. After announcing the massive $63 billion acquisition of Allergan in June 2019 and closing the deal almost a year later, AbbVie was generally quiet on the public M&A front before announcing two back to back deal deals just days apart.
Only plus or premium subscribers can access this post. Cerevel Therapeutics (CERE): $42.26. The Liquidation of First Financial Northwest - Merger Arbitrage Mondays - InsideArbitrage. First Financial Northwest (FFNW): $20.65 Market Cap: $189 million Last week turned out to be a very active week on the M&A front with multiple new healthcare deals announced, a report about two private equity firms potentially competing for DocuSign (DOCU), the resignation of JetBlue’s CEO and Hewlett Packard Enterprise (HPE) acquiring Juniper Networks (JNPR) in a massive $14.31 billion all cash deal.
We expanded on the Cereval Therapeutics (CERE) idea we discussed in last week’s Merger Arbitrage Mondays article in our January 2024 mid-month update that was published early because the HSR waiting period for Cereval expired at midnight on January 16th. The deal that caught my eye was the liquidation of a microcap bank and the acquisition of its assets and liabilities by a credit union. Anchorage, Alaska based Global Federal Credit Union agreed to acquire Renton, Washington based First Financial Northwest (FFNW) for $231.2 million.
Only plus or premium subscribers can access this post. Hedge Fund Merger Arbitrage. Maximizing Returns through Hedge Fund Merger Arbitrage: A Strategic Approach to Investment. Gilead Expecting A Quick Close With CymaBay Therapeutics - Merger Arbitrage Mondays - InsideArbitrage. CymaBay Therapeutics: $31.17 Market Cap: $3.69 billion When Gilead Sciences (GILD) announced its all cash acquisition of CymaBay (CBAY) last week for $32.50 per share in cash, it wasn’t as much the $3.26 billion price tag or the 36% premium it paid for the company that stood out. It was the expected closing indicated, which according to the press release was “the first quarter of 2024, subject to regulatory approvals and other customary closing conditions.” This 49 day or earlier expected close is less than half the time it takes for most deals to close. It is so short, that I doubled checked to make sure that Gilead or CymaBay were not indicating a fiscal quarter that was different from the calendar quarter.
Looking at the financial statements for both companies that was not the case. CymaBay Therapeutics is a clinical-stage biopharmaceutical company headquartered in Newark, California. Only plus or premium subscribers can access this post. CymaBay Therapeutics: $31.17. Potential Battle For Hess - Merger Arbitrage Mondays - InsideArbitrage. Hess Corporation (HES): $148.19 Deal Size: $60 billion When I wrote about some of the new positions a group of eight arbitrage focused funds initiated in Q4 2023 in an article titled Concentrated Merger Arbitrage Funds – Q4 2023 Update two weeks ago, one of the things that stood out was their decision to get into two energy focused deals. Seven of the eight had a position in Exxon Mobil’s all stock acquisition of Pioneer Natural Resources (PXD) and four had a position in Chevron’s (CVX) acquisition of Hess (HES) in an all stock deal worth $60 billion.
As I mentioned in that article, the PXD deal had been rumored for several months and I could see some of them participating in a pre-deal situation. “Because this is an all stock deal, an investor would have to short Chevron stock to capture the spread. Only plus or premium subscribers can access this post. Hess Corporation (HES): $148.19 Deal Size: $60 billion Only plus or premium subscribers can access this post. Deal Size: $60 billion. Merger Arbitrage Mondays: Latest M&A Deals This Week | Inside Arbitrage. Johnson & Johnson’s Massive Acquisition. Strengthening Market Position: Johnson & Johnson's Acquisition of Shockwave Medical. President Biden Opposes The Acquisition of U.S. Steel - Merger Arbitrage Mondays - InsideArbitrage. United States Steel (X): $38.85 Deal Size: $14.9 B Market Cap: $8.69 B The largest week-over-week spread change last week occurred with acquisition of United States Steel (X) by Nippon Steel (NISTF), which saw its spread expand from 15.94% to 41.57%.
In fact the stock is now trading below where it was before the merger with Nippon Steel was announced but still well above where it was when rumors of a deal surfaced and a bidding war for the company began. There were two reasons I was initially not interested in the deal. Only plus or premium subscribers can access this post. United States Steel (X): $38.85 Deal Size: $14.9 B Market Cap: $8.69 B The largest week-over-week spread change last week occurred with acquisition of United States Steel (X) by Nippon Steel (NISTF), which saw its spread expand from 15.94% to 41.57%. There were two reasons I was initially not interested in the deal.
Only plus or premium subscribers can access this post. United States Steel (X): $38.85 Deal Size: $14.9 B. The Acquisition of Fusion Pharmaceuticals Includes a Nice Kicker - Merger Arbitrage Mondays - InsideArbitrage. Fusion Pharmaceuticals (FUSN): $21.24 Deal Size: $2.4 B In an unusual decline in new M&A activity, we saw just one new deal announced with AstraZeneca’s (AZN) acquisition of Fusion Pharmaceuticals in a deal worth $21 per share in cash and a potential contingent value right (CVR) payment to $3 per share. On account of the CVR, we are classifying the deal as a “special conditions” deal in our Merger Arbitrage Tool (MAT). Fusion Pharmaceuticals is an Ontario, Canada-based company that is building targeted therapies that result in the death of cancer cells. The company does this by triggering double-stranded DNA breaks in cancer cells by delivering alpha radiation to those cells through antibodies as you can see in this video.
The company’s most advanced program, FPI-2265, is a potential new treatment for metastatic prostrate cancer. AstraZeneca was willing to pay up for acquiring the company as the premium on the deal was 126% as you can see from our deal metrics page. Deal Size: $2.4 B. The Acquisition of Fusion Pharmaceuticals Includes a Nice Kicker - Merger Arbitrage Mondays - InsideArbitrage. The Landos Biopharma Acquisition Includes a Large CVR - Merger Arbitrage Mondays - InsideArbitrage.
Landos Biopharma (LABP): $21.48 Deal Size: $90.65 M + $75 M potential CVR A week after we covered the acquisition of Fusion Pharmaceuticals (FUSN) by AstraZeneca’s (AZN), which included a $3 per share potential contingent value right (CVR) payment, we have another pharma deal with a much larger CVR. This time it is the pharma giant AbbVie (ABBV) acquiring Landos Biopharma (LABP) in an all cash deal for $20.42 per share and a potential CVR payment of $11.14 per share. According to the press release announcing the deal, the deal is valued at $137.5 million without taking into account an additional $75 million attributed to the CVR.
Based on the company’s shares outstanding from the last 10-K and the fact that it ended 2023 with $37.5 million in net cash on the balance sheet, I calculate the deal value at $90.65 million without the CVR. Only plus or premium subscribers can access this post. Subscribe today. Landos Biopharma (LABP): $21.48 Deal Size: $90.65 M + $75 M potential CVR. Johnson & Johnson’s Massive Acquisition of Shockwave Medical - Merger Arbitrage Mondays - InsideArbitrage. Shockwave Medical (SWAV): $326.34 Deal Size: $13.1 B After a relatively quiet March, deal activity picked up significantly last week with each new deal announced turning out to be larger than the last one and finally culminating in Johnson & Johnson’s (JNJ) acquisition of Shockwave Medical (SWAV). The premium paid (30 day average) for this $13.1 billion all cash deal was just 19.79% but this premium was impacted by the fact that rumors of a deal surfaced on March 26 and the deal was actually confirmed about a week later.
When I was visiting my parents last year, my mom was complaining about chest pains. A cardiologist told us that she had a severely calcified valve in her heart that needed to be replaced. Leaving the valve untreated would at some point result in complete blockage of blood flow and heart failure. I extended my stay and instead of open heart surgery she underwent a minimally invasive procedure called transcatheter aortic valve replacement (TAVR) to replace the valve. A New Twist In the Paramount Global Potential Acquisition - Merger Arbitrage Mondays - InsideArbitrage. Paramount Global (PARA): $12.44 The potential acquisition of Paramount Global heated up again last Friday when the New York Times reported that Sony is now in joint talks with Apollo for a potential bid for the media giant. After the various twists and turns about this rumored deal we have been reporting since the start of this year, starting with Media mogul Byron Allen $14.3 billion offer and the more recent convoluted potential deal with Skydance, this joint Sony and Apollo deal makes the most sense.
You can check out the play by play evolution of all the offers in our Deals In The Works Tool but a brief timeline of this potential deal is given below: Only plus or premium subscribers can access this post. Subscribe today. Paramount Global (PARA): $12.44 The potential acquisition of Paramount Global heated up again last Friday when the New York Times reported that Sony is now in joint talks with Apollo for a potential bid for the media giant. Paramount Global (PARA): $12.44. Putting Berkshire's Cash Hoard to Work - Merger Arbitrage Mondays - InsideArbitrage. Apartment REIT Receives Some Love From Blackstone - Merger Arbitrage Mondays - InsideArbitrage. Online Marketplaces Company CoStar Acquires 3D Technology Company - Merger Arbitrage Mondays - InsideArbitrage. Nokia Corp. Acquires Infinera Corp. Inside Arbitrage. Nokia Corp. Acquires Infinera Corp - A Strategic Move to Strengthen Network Infrastructure. Nokia Corp. Acquires Infinera Corp. Nokia Corp. Acquires Infinera Corp - A Strategic Move to Strengthen Network Infrastructure.
Nokia Expands Its Network Infrastructure Business - Merger Arbitrage Mondays - InsideArbitrage. Merger Arb Spreads. Understanding Merger Arb Spreads: An Insightful Guide. TrueCar Supercharges Buyback With $100 Million - Buyback Wednesdays - InsideArbitrage. Eventbrite's $100M Share Repurchase: A Ticket to Investor Attraction? - Buyback Wednesdays - InsideArbitrage. Roivant's Ambitious $1.5 Billion Share Repurchase Plan - Buyback Wednesdays - InsideArbitrage. Sprout Farmers Market Unveils a $600 Million Share Repurchase - Buyback Wednesdays - InsideArbitrage.
Sprout Farmers Market Unveils a $600 Million Share Repurchase - Buyback Wednesdays - InsideArbitrage. Sprout Farmers Market Unveils a $600 Million Share Repurchase - Buyback Wednesdays - InsideArbitrage. Merger Arbitrage Funds. Inside Arbitrage. Merger Arbitrage Funds: Strategies and Risks Explained. Merger Arbitrage Funds: Strategies and Risks Explained. Merger Arbitrage Funds. Merger Arbitrage Funds: Strategies and Risks Explained. Merger Risk Arbitrage. Inside Arbitrage. Merger Risk Arbitrage: Strategies, Opportunities, and Market Trends. Merger Risk Arbitrage. Merger Risk Arbitrage: Strategies, Opportunities, and Market Trends. Silk Road Medical To Merge into Boston Scientific: Merger Arbitrage Opportunity.
Inside Arbitrage. Silk Road Medical To Merge into Boston Scientific. Silk Road Medical To Merge into Boston Scientific: Merger Arbitrage Opportunity. Inside Arbitrage. Inside Arbitrage. Merger and Acquisition Arbitrage: Strategies, Risks, and Future Trends. Merger and Acquisition Arbitrage: Strategies, Risks, and Future Trends. Merger and Acquisition Arbitrage. Merger and Acquisition Arbitrage. Merger and Acquisition Arbitrage: Strategies, Risks, and Future Trends.
Inside Arbitrage. Merger Arbitrage: A Comprehensive Investment Guide. Merger Arbitrage: A Comprehensive Investment Guide. Merger Arbitrage. Merger Arbitrage. Merger Arbitrage: A Comprehensive Investment Guide. Private Equity Firm Acquires PlayAGS. Online Marketplaces Company CoStar Acquires 3D Technology. Private Equity Giant Acquires PlayAGS: A Game-Changer in the Gaming Industry. CoStar Group Acquires 3D Tech Company, Transforming Property Visualization. SilverBow and Crescent Tie The Bow. Energy Giants Unite: SilverBow and Crescent’s Merger Potential. Meridiam Announces Tender Offer to Acquire Allego N. Boston Scientific Acquires Silk Road Medical.
Aaron’s Company to be Acquired by IQVentures. Boston Scientific Acquires Silk Road Medical for $1.16 Billion in Cash. Meridiam Announces Tender Offer to Acquire Allego N.V. Boston Scientific Acquires Silk Road Medical for $1.16 Billion in Cash - InsideArbitrage. Boston Scientific Acquires Silk Road Medical for $1.16 Billion in Cash - InsideArbitrage. Meridiam Announces Tender Offer to Acquire Allego N.V - InsideArbitrage. Meridiam Announces Tender Offer to Acquire Allego N.V - InsideArbitrage. Skydance Dances with Paramount. ConocoPhillips Wins Marathon. InsideArbitrage Deals in the Works Tool: Potential M&A Deals in the Pipeline. Active Merger Deals | Inside Arbitrage - Recent M&A Transactions. Failed Mergers and Acquisitions (M&A) Examples | Inside Arbitrage. ConocoPhillips-Marathon Oil Merger: A Strategic Win in the Energy Sector.
Skydance and Paramount Join Forces: A New Era in Entertainment. Merger Deal Alert | M&A Deals 2024 | Inside Arbitrage. Merger Arbitrage Calendar | Upcoming Mergers & Acquisitions (M&A) | Inside Arbitrage. Merger Arbitrage: An Introduction to Profitable Investment Strategies | Inside Arbitrage. Insidearbitrage. Merger Arbitrage Mondays: Latest M&A Deals This Week | Inside Arbitrage.
Latest Merger Announcement & M&A Updates: Explore Merger Arbitrage Opportunities in 2024.