The Biggest Risk Arbitrage Plays Made by Havens Advisors in Q3

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Intersil Corp (NASDAQ:ISIL)

– Shares Owned by Havens Advisors LLC (as of September 30): 175,000

– Value of the Holding (as of September 30): $3.84 Million

Intersil Corp (NASDAQ:ISIL)’s stock rose by over 60% during the third quarter, when Havens Advisors LLC initiated its stake in the company. The rally started in August amid news that Japan’s Renesas Electronics was in talks to acquire the company and was strengthened when Intersil Corp (NASDAQ:ISIL) formally announced that Renesas would be acquiring it for $22.50 per share or around $3.2 billion. Since the start of the fourth quarter, Intersil’s stock has been trading around the $22 level and is up by 73% year-to-date. For its fiscal 2016 third quarter, the company reported EPS of $0.22 on revenue of $139.05 million beating analysts’ expectations of EPS of $0.18 on revenue of $137.60 million.

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Sunedison Semiconductor Ltd (NASDAQ:SEMI)

– Shares Owned by Havens Advisors LLC (as of September 30): 340,000

– Value of the Holding (as of September 30): $3.87 Million

Sunedison Semiconductor Ltd (NASDAQ:SEMI) was another company that agreed to be acquired during the third quarter in which Havens Advisors initiated a stake. On August 18, GlobalWafers announced that it will be acquiring the Missouri-based silicon wafers manufacturer for $12 per share or $683 million. Prior to that announcement, shares of Sunedison Semiconductor Ltd (NASDAQ:SEMI) were extremely volatile this year. However, they have stabilized since then and are currently trading up by 52.3% year-to-date. After GlobalWafers announced the acquisition, several analysts downgraded Sunedison Semiconductor’s stock, including those at Deutsche Bank AG and Summit Redstone, who lowered their rating on it to ‘Hold’ from ‘Buy’.

WhiteWave Foods Co (NYSE:WWAV)

– Shares Owned by Havens Advisors LLC (as of September 30): 132,000

– Value of the Holding (as of September 30): $7.18 Million

Finally, WhiteWave Foods Co (NYSE:WWAV) was the largest new addition to Havens Advisors’ equity portfolio during the third quarter. Like all the other companies we have discussed, WhiteWave Foods Co (NYSE:WWAV) is also set to be acquired by another company in the next few months. In July, French company Danone, which is the largest yogurt maker in the world, revealed that it will be acquiring WhiteWave for $12.5 billion.  Although, WhiteWave’s stock has appreciated by 38.83% so far this year, it is still trading 4.5% lower than the $56.25 per share purchase price offered by Danone. On November 9, the company reported mixed numbers for its third quarter. While analysts had expected it to report EPS of $0.38 on revenue of $1.1 billion, WhiteWave declared EPS of $0.39 on revenue of $1.05 billion.

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Disclosure: None

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