M&A Daily: Is This The Next Big Bank Deal?
Summary Top news on M&A activity. What has happened in M&A in the past day? First Niagara hires JPM to run sale process. Welcome to the edition of M&A Daily. Please join Sifting the World for exclusive access to event driven, value investing, and arbitrage opportunities. Here are some examples of such opportunities in today’s market. First Niagara Will First Niagara launch a new wave of bank deals? First Niagara (NASDAQ: FNFG ) hired JPMorgan (NYSE: JPM ) to manage its sale process. It is worth about $12 per share in a deal. Such a price would work for a buyer, assuming about 25% cost savings. Potential buyers include BB&T (NYSE: BBT ), New York Community (NYSE: NYCB ), TD Bank (NYSE: TD ), and KeyCorp (NYSE: KEY ). BioMed BioMed Realty Trust (NYSE: BMR ) hired an advisor to exploring a sale. This could be either a strategic deal or an LBO. Private equity firms including Blackstone (NYSE: BX ) are considering making bids. Citrix With the approval of Elliott Associates, Citrix (NASDAQ: CTXS ) is looking for a buyer. One possible strategic buyer could be Dell . Paul Singer and his colleagues at Elliott Associates are not to be easily pleased. They believe that CTXS is worth over $90 per share by 2017. A bidder would have to bid at least 14-15x e2015 EBITDA to secure a deal. For background reading on this situation, check out Citrix: Elliott Associates’ Latest Activist Target . Mylan Mylan (NASDAQ: MYL ) countersued Perrigo (NYSE: PRGO ) over statements it made as a part of its corporate defenses. The $10.46 net arbitrage spread offers a 21% annual return to a year-end close. 2016 Presidential Campaign Update M&A Daily recently endorsed Steve Schwarzman for President based on his unerring defense of the carried interest loophole. To balance the ticket (between PE and hedge fund guys), we would like to announce our endorsement of Cliff Asness for Vice President in no small part due to this effort on behalf of truth, justice, and the American way of life. Merger Arbitrage For further reading, check out Merger Arbitrage Interview Series: Heath Winter Of ArbitrOption Capital Management, LLC . Heath is a friend, former colleague, and expert on using equity options to exploit arbitrage opportunities. M&A Daily If you are reading this for the first time and would like to receive breaking news on M&A opportunities, please subscribe. When reading this on the website, you can do so by clicking on the button below. Disclosure: I am/we are long FNFG, BMR, CTXS, PRGO. (More…) I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Additional disclosure: Chris DeMuth Jr is a portfolio manager at Rangeley Capital. Rangeley invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our investors, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.