Cheyne Capital Is Betting Big On M&A In 2016

#3 Precision Castparts Corp. (NYSE:PCP)

– Shares Owned by Cheyne Capital (as of December 31): 124,635

– Value of Holding (as of September 30): $28.92 million

After having initiated a stake in Precision Castparts Corp. (NYSE:PCP) during the third quarter, Cheyne Capital boosted it by 62% during the fourth quarter. Shares of Precision Castparts Corp. (NYSE:PCP) remained range-bound since Warren Buffett’s Berkshire Hathaway announced on August 10 that it would purchase the company for $235 per share. In January, regulators at the European Commission approved the acquisition, paving way for the deal to get completed and at the end of the last month, the deal was completed, totalling $37.2 billion, including the company’s outstanding debt.

#2 Cablevision Systems Corporation (NYSE:CVC)

– Shares Owned by Cheyne Capital (as of December 31): 947,731

– Value of Holding (as of September 30): $30.22 million

Cheyne Capital increased its stake in Cablevision Systems Corporation (NYSE:CVC) by 26% during the fourth quarter after having initiated a stake in it during the third quarter. In September last year billionaire Patrick Drahi’s Altice NV had announced that it would acquire Cablevision Systems Corporation (NYSE:CVC) for $10 billion or $34.90 per share. Though shares of Cablevision Systems Corporation surged after the deal was made public, they have cooled off since then and currently are 2% in the green year-to-date. One of the major factors that affected the stock’s performance was the announcement by New York City’s government that it would not allow the deal to materialize if it is against the public’s interest. Billionaire Mario Gabelli‘s GAMCO Investors held 9.13 million shares of Cablevision Systems at the end of last year.

#1 Atmel Corporation (NASDAQ:ATML)

– Shares Owned by Cheyne Capital (as of December 31): 3.73 million

– Value of Holding (as of September 30): $32.18 million

Atmel Corporation (NASDAQ:ATML) was a new addition to Cheyne Capital’s equity portfolio during the third quarter. In September, England-based Dialog Semiconductor made an offer to buy Atmel Corporation (NASDAQ:ATML) for $4.6 billion in cash and stock. However, due to the decline of the Dialog’s stock price, the bid was lowered to $4 billion. In January, Atmel Corporation announced that it received a ‘superior’ offer from Microchip Technology Inc. (NASDAQ:MCHP) for $3.42 billion. Following the announcement Dialog Semiconductor said that it wouldn’t revise its offer leaving Atmel Corporation free to accept Microchip’s bid. However, according to the terms of the merger agreement between Atmel Corporation and Dialog Semiconductor, the former will have to pay $137.3 million if the merger is terminated. In its latest 13F filing, Clint Carlson’s Carlson Capital reported a new stake in Atmel Corporation, which contains 3.06 million shares.

Disclosure: None