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Merger Arbitrage

Company Ticker Acquirer Announced Date Deal Price Current Price Spread Expected Close
Cameron CAM Schlumberger 8/26/2015 $67.32 $63.21 6.5% 3/31/2016
Belk BLKIA Sycamore Partners 8/24/2015 $68.00 $66.75 1.9% 12/31/2015
AGL Resources GAS Southern Co. 8/24/2015 $66.00 $60.64 8.8% 12/31/2016
Steiner Leisure STNR Catterton 8/21/2015 $65.00 $63.86 1.8% 12/31/2015
Dot Hill HILL Seagate Technology 8/19/2015 $9.75 $9.67 0.8% 12/31/2015
National Penn Bancshares NPBC BB&T Corp. 8/17/2015 $11.94 $12.03 -0.8% 6/30/2016
zulily ZU Liberty Interactive 8/17/2015 $17.86 $17.82 0.2% 12/31/2015
WuXi PharmaTech WX New WuXi Life Science Limited 8/14/2015 $46.00 $42.69 7.8% 12/31/2015
Planar Systems PLNR Leyard Optoelectronic 8/13/2015 $6.58 $5.78 13.8% 12/31/2015
Symetra Financial SYA Sumitomo Life 8/11/2015 $32.00 $31.42 1.8% 3/31/2016


Highlighted Deal

July 3, 2015 - As rumored, Aetna (NYSE: AET) and Humana Inc. (NYSE: HUM) announced early Friday that they have entered into a definitive agreement under which Aetna will acquire all outstanding shares of Humana for a combination of cash and stock valued at $37 billion or approximately $230 per Humana share based on the closing price of Aetna common shares on July 2, 2015

Under the terms of the agreement, which has been unanimously approved by the board of directors of each company, Humana stockholders will receive $125.00 in cash and 0.8375 Aetna common shares for each Humana share. As a result of the transaction, Aetna’s shareholders would own approximately 74 percent of the combined company and Humana’s shareholders would own approximately 26 percent. Aetna expects to finance the cash portion of the transaction with a combination of cash on hand and by issuing approximately $16 billion of new term loans, debt and commercial paper. Upon closing, which is expected to be in the second half of 2016, the company’s debt-capital ratio is projected to be approximately 46 percent, and management has committed to reducing that ratio below 40 percent over the 24 months following the closing. The transaction is projected to be neutral to Aetna’s 2016 Operating EPS and produce mid-single digit percentage Operating EPS accretion in 2017 and low double-digit percentage Operating EPS accretion in 2018.