Progressive Waste Solutions Ltd
The MAE clause lays out the circumstances where Waste Connections (WCN) can back out of its merger with Progressive Waste (BIN).
The MAE (material adverse effect) clause is one of the first things that arbitrageurs check in a merger agreement.
Progressive Waste is in the non-hazardous waste management industry. It’s one of the largest vertically integrated non-hazardous waste management companies.
Two companies bidding against each other in a merger deal can easily lead from a 1% gross spread to a 10% gross spread for merger arbitrage professionals.
Blue Harbour started a new position in Clean Harbors (CLH) in 4Q14, buying 1,434,552 shares worth $68 million. It accounts for 2.21% of the fund’s total portfolio.
Founded in 1980 and based in Massachusetts, Clean Harbors is a provider of environmental, energy, and industrial services.