Merger Arbitrage Mondays – May 17, 2010

  • May 17, 2010

With the turmoil in the market, merger activity slowed just a little with four new deals announced last week and one deal closing. The deal that closed was the acquisition of Brink’s Home Security Holdings (CFL) by Tyco International on May 14, 2010.

Two out of the four new deals are all cash deals while the other two are a combination of cash and stock. The all cash deals include the acquisition of Sybase (SY) by SAP (SAP) where SAP is offering $65 for each outstanding share of Sybase’s common stock and the acquisition of BioSphere Medical (BSMD) by Merit Medical Systems (MMSI) where BioSphere Medical shareholders will receive $4.38 per share in cash. Given that Sybase closed below $65 on Friday, the market is not anticipating a competing offer from other tech heavyweights like Oracle (ORCL).

The cash plus stock deals include the acquisition of CPI International (CPII) by Comtech Telecommunications and the acquisition of Atlantic BancGroup (ATBC) by Jacksonville Bancorp (JAXB). If the merger is completed, CPI International shareholders will receive a combination of $9.00 in cash plus a fraction of Comtech common stock equal to $8.10 divided by the average closing price of Comtech common stock over a specified period of time prior to closing. The fraction shall not be greater than 0.2382 nor less than 0.2132. On the completion of the merger, Atlantic BancGroup shareholders will receive 0.2 shares of Jacksonville Bancorp common stock for each share of Atlantic BancGroup common stock held, plus up to approximately $0.65 per share in cash, subject to the qualifying sale of certain Atlantic BancGroup assets.

 SymbolAnno.
Date
Acquiring
Company
Clo.
Value
Clo.
Price
Last
Price
Clo.
Date
ProfitAnnu.
Profit
+ADG1/19/2010Chemring Group Plc$59 million7.254.925/31/201047.36%1234.68%
+AYE2/11/2010FirstEnergy$8.5 billion24.5121.543/31/201113.79%16.03%
+PINN2/24/2010Investor Group lead by Scotia Waterous (USA)$11 million0.340.31016/30/20109.64%81.85%
+SSE2/23/2010Naugatuck Valley Financial Corp$19.5 million7.256.668/16/20108.86%36.33%
+Q4/22/2010Century Link$10.6 billion5.685.284/21/20117.58%8.28%
+ME4/15/2010Apache$2.7 billion23.8722.649/30/20105.43%14.91%
+DCP4/12/2010Cerberus Capital Management$1.5 billion17.5516.6711/15/20105.28%10.82%
+CPII5/10/2010Comtech$472.3 million16.415.699/30/20104.53%12.42%
+RCNI3/5/2010Emera Inc.$1.2 billion1514.49/30/20104.17%#VALUE!
+STBK3/18/2010Roma Financial Corp$14.7 million2.522.428/16/20104.13%#VALUE!
+SII2/19/2010Schlumberger$7.5 billion45.243.549/30/20103.81%#VALUE!
+BNE2/24/2010RR Donnelley$481 million11.511.099/30/20103.70%10.15%
+VTIV5/6/2010Thomas H. Lee Partners$1.1 billion2625.099/30/20103.63%9.95%
+IDC5/4/2010Silver Lake & Warburg Pincus$3.4 billion33.8632.689/30/20103.61%9.91%
+SWWC3/3/2010Institutional Investors$275 million1110.623/31/20113.58%4.16%
+MAM3/12/2010 $75.7 million4543.6912/31/20103.00%4.89%
+ORCD3/16/2010eMusic$12.77 million2.0528/16/20102.50%10.25%
+SXE5/7/2010CGI Group$904 million37.536.719/30/20102.15%5.91%
+BSMD5/13/2010Merit Medical Systems$96 million4.384.39/30/20101.86%5.11%
+ARD4/4/2010SandRidge Energy Inc.$1.6 billion35.3734.749/30/20101.81%4.98%
+WEL4/9/2010Halliburton Company$240 million32.959/30/20101.69%4.65%
+CYBS4/21/2010Visa Inc.$2.0 billion2625.69/30/20101.56%4.29%
+ATSI4/29/2010Medtronic$350 million43.949/30/20101.52%4.18%
+HTRN5/5/2010Endo Pharmaceuticals$223 million4.854.787/31/20101.46%7.22%
+RBI3/15/2010affiliate of Oncap Management Partners L.P. 13.5513.378/16/101.35%5.52%
+SENO5/5/2010Bard$200 million1110.879/30/20101.20%3.28%
+PFWD4/16/2010Oracle Corp.$685 million1716.86/30/20101.19%10.11%
+MIL3/1/2010Merck$6 billion107105.99/30/20101.04%2.85%
+WX4/26/2010Charles River Laboratories$1.6 billion18.5918.412/31/20101.03%1.68%
+SKIL2/12/2010consortium of private equity funds$1.2 billion11.2511.145/31/20100.99%25.74%
+CAL5/3/2010United$1.2 billion20.8420.6512/31/20100.92%1.50%
+NADX4/5/2010GDC Holdings Inc.$100 million1716.856/30/20100.89%7.56%
+CKR3/1/2010Apollo Management VII$694 million12.5512.446/30/20100.88%7.51%
+CRN4/19/2010GeoGroup$685 million28.0427.819/30/20100.83%2.27%
+BWY3/29/2010Madison Dearborn Partners, LLC ("MDP")$915 million2019.858/16/20100.76%3.10%
+RISK3/1/2010MSCI$1.55 billion22.2622.117/16/20100.68%4.20%
+DCAI4/14/2010U.S. Renal Care$112 million11.2511.185/31/20100.63%16.32%
+BELM3/29/2010Avnet$252 million76.966/30/20100.57%4.88%
+SY5/12/2010SAP$5.8 billion6564.659/30/20100.54%1.49%
+TWPG4/26/2010Stifel Financial$300 million7.57.466/30/20100.54%4.55%
+IUSA3/8/2010CCMP$460 million87.966/30/20100.50%4.27%
+SMMX4/5/2010Accelrys Inc.$186 million5.595.576/30/20100.36%3.05%
+PALM4/28/2010Hewlett – Packard$1.2 billion5.75.687/31/20100.35%1.74%
+PRPX2/17/2010L.B. Foster Co.$112 million11.7111.676/30/20100.34%2.91%
+ZNT2/18/2010Fairfax Financial Holdings$I.4 billion3837.99/30/20100.26%0.72%
+PONE4/26/2010GTCR$828 million15.515.476/30/20100.19%1.65%
+CXG3/22/2010Consol Energy Inc.$363 million38.2538.186/30/20100.18%1.56%
+TUTR3/26/2010Thoma Brava$141 million5.65.597/31/20100.18%0.88%
+NGA4/1/2010AZZ Inc.$125.6 million7.57.498/31/20100.13%0.47%
+MIR4/12/2010RRI Energy In.$1.6 billion12.3912.5112/31/2010-0.96%-1.56%
+DTG4/26/2010Hertz$1.2 billion4150.2912/31/2010-18.47%-30.10%
+ATBC5/10/2010Jacksonville Bancorp  2.222.759/30/2010-19.27%-52.89%
+CCE2/25/2010The Coca-Cola Company$12.3 billion 26.5710/1/2010