Merger Arbitrage Mondays – June 07, 2010

  • June 7, 2010

The activity on the Merger and Acquisition front increased once again last week with seven new deals announced and four deals closing. We are also happy to report the beta launch of a new tool that will let you see the spreads on deals in almost real time. This tool automatically calculates the profits and annualized profits for all cash, cash plus stock and all stock deals during trading hours. It will also calculate the profits for deals that have special collars like the acquisition of WuXi PharmaTech (WX) by Charles River Labs (CRL) that was discussed in this blog entry. Please take our new Merger Arbitrage tool for a test drive and let us know your thoughts on how we could improve it.

The deals that closed last week include the acquisition of RiskMetrics Group (RISK) by MSCI on June 02, 2010, the acquisition of Dialysis Corporation of America (DCAI) by U.S. Renal Care on June 02, 2010, the acquisition of CNX Gas (CXG) by Consol Energy on June 01, 2010 and the acquisition of Protection One (PONE) by GTCR on June 04, 2010

The Seven New Deals include the acquisition of ev3 (EVVV) by Covidien plc (COV) for $22.5 per share in cash, the acquisition of SonicWall (SNWL) by an investor group led by private equity firm Thoma Bravo LLC for $11.5 per share in cash, the acquisition of DivX (DIVX) by Sonic Solutions (SNIC) for $3.75 in cash and 0.514 shares of Sonic Solutions common stock for each share of DivX, the acquisition of PET DRx Corp (VETS) by VCA Antech Inc (WOOF) for $0.34 to $0.36 per share in cash and the acquisition of OMNI Energy Services (OMNI) by Wellspring Capital Management for $2.75 per share in cash.

The other two new deals include Mediacom Communications Corporation (MCCC), which is being taken private by it’s CEO Rocco Commisso for $6 per share in cash and the acquisition of Gerdau Ameristeel Corporation (GNA) by Gerdau (GGB) for $11 per share in cash. The closing date for these two deals has not been mentioned so far.

We have also updated the information for the acquisition of car rental company Dollar Thrifty (DTG) by Hertz.

 SymbolAnnounced
Date
Acquiring
Company
Closing
Value
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
+AYE02/11/2010FirstEnergy$8.5 billion$23.90$20.7403/31/2011 15.23% 18.72%
+SSE02/23/2010Naugatuck Valley Financial Corp$19.5 million$7.25$6.3008/16/2010 15.08% 78.63%
+ATBC05/10/2010Jacksonville BancorpN/A$2.95$2.5609/30/2010 15.08% 47.86%
+WX04/26/2010Charles River Laboratories$1.6 billion$20.28$18.1012/31/2010 12.04% 21.23%
+PINN02/24/2010Investor Group lead by Scotia Waterous (USA)$11 million$0.34$0.3106/30/2010 9.68% 153.62%
+Q04/22/2010Century Link$10.6 billion$5.65$5.2404/21/2011 7.78% 8.93%
+ME04/15/2010Apache$2.7 billion$23.15$21.5609/30/2010 7.36% 23.36%
+SWWC03/03/2010Institutional Investors$275 million$11.00$10.2503/31/2011 7.32% 9.00%
+EMMS05/25/2010JS Acquisition and Alden Global Capital$3 billion$2.40$2.2909/30/2010 4.80% 15.23%
+DIVX06/02/2010Sonic Solutions$323 million$9.01$8.6309/30/2010 4.38% 13.90%
+VTIV05/06/2010Thomas H. Lee Partners$1.1 billion$26.00$24.9609/30/2010 4.17% 13.24%
+BNE02/24/2010RR Donnelley$481 million$11.50$11.0409/30/2010 4.17% 13.24%
+PRPX02/17/2010L.B. Foster Co.$112 million$11.71$11.2506/30/2010 4.09% 64.91%
+PSYS05/17/2010Universal Health$3.1 billion$33.75$32.5012/31/2010 3.85% 6.79%
+SII02/19/2010Schlumberger$7.5 billion$39.56$38.2109/30/2010 3.53% 11.20%
+GLG05/17/2010Man Group$1.6 billion$4.50$4.3509/30/2010 3.45% 10.95%
+RCNI03/05/2010ABRY Partners$536 million$15.00$14.5009/30/2010 3.45% 10.95%
+MAM03/12/2010Emera Inc$75.7 million$45.00$43.5012/31/2010 3.45% 6.08%
+STBK03/18/2010Roma Financial Corp$14.7 million$2.52$2.4408/16/2010 3.28% 17.10%
+IDC05/04/2010Silver Lake & Warburg Pincus$3.4 billion$33.86$32.8609/30/2010 3.04% 9.65%
+VETS06/02/2010VCA Antech Inc$41.25 million$0.34$0.3309/30/2010 3.03% 9.62%
+EFJI05/17/2010Francisco Partners $1.05$1.0209/30/2010 2.94% 9.33%
+DCP04/12/2010Cerberus Capital Management$1.5 billion$17.55$17.1211/15/2010 2.51% 5.69%
+ORCD03/16/2010eMusic$12.77 million$2.05$2.0008/16/2010 2.50% 13.04%
+HTRN05/05/2010Endo Pharmaceuticals$223 million$4.85$4.7407/31/2010 2.32% 15.68%
+OMNI06/04/2010Wellspring Capital Management$122 million$2.75$2.6911/15/2010 2.23% 5.06%
+VRAD05/17/2010Providence Equity$294 million$17.25$16.8809/30/2010 2.19% 6.95%
+BSMD05/13/2010Merit Medical Systems$96 million$4.38$4.2909/30/2010 2.10% 6.67%
+PFWD04/16/2010Oracle Corp.$685 million$17.00$16.6506/30/2010 2.10% 33.33%
+ATSI04/29/2010Medtronic$350 million$4.00$3.9309/30/2010 1.78% 5.65%
+WEL04/09/2010Halliburton Company$240 million$3.00$2.9509/30/2010 1.69% 5.36%
+ODSY05/24/2010Gentiva Health Services$1.0 billion$27.00$26.5509/30/2010 1.69% 5.36%
+SNWL06/03/2010investor group led by private equity firm Thoma Bravo LLC$636 million$11.50$11.3112/31/2010 1.68% 2.96%
+WMZ05/24/2010Williams Partners L.P. $29.71$29.2709/30/2010 1.52% 4.82%
+MIR04/12/2010RRI Energy In.$1.6 billion$12.76$12.5712/31/2010 1.49% 2.63%
+CKR03/01/2010Apollo Management VII$694 million$12.55$12.3806/30/2010 1.37% 21.74%
+CAL05/03/2010United$1.2 billion$22.94$22.6412/31/2010 1.34% 2.36%
+SENO05/05/2010Bard$200 million$11.00$10.8609/30/2010 1.29% 4.09%
+DBTK05/17/2010Vision Solutions$242 million$10.55$10.4209/30/2010 1.25% 3.97%
+CRN04/19/2010GeoGroup$685 million$26.86$26.5609/30/2010 1.12% 3.55%
+CPII05/10/2010Comtech$472.3 million$15.93$15.7609/30/2010 1.09% 3.46%
+EVVV06/01/2010Covidien plc$2.6 billion$22.50$22.2607/31/2010 1.08% 7.30%
+CYBS04/21/2010Visa Inc.$2.0 billion$26.00$25.7409/30/2010 1.01% 3.21%
+SY05/12/2010SAP$5.8 billion$65.00$64.4009/30/2010 0.93% 2.95%
+TWPG04/26/2010Stifel Financial$300 million$6.67$6.6106/30/2010 0.87% 13.81%
+SXE05/07/2010CGI Group$904 million$37.50$37.1909/30/2010 0.83% 2.63%
+IUSA03/08/2010CCMP$460 million$8.00$7.9406/30/2010 0.76% 12.06%
+RBI03/15/2010affiliate of Oncap Management Partners L.P. $13.55$13.4508/16/2010 0.74% 3.86%
+BELM03/29/2010Avnet$252 million$7.00$6.9506/30/2010 0.72% 11.43%
+ARD04/04/2010SandRidge Energy Inc.$1.6 billion$36.04$35.8009/30/2010 0.66% 2.09%
+NADX04/05/2010GDC Holdings Inc.$100 million$17.00$16.9106/30/2010 0.53% 8.41%
+MIL03/01/2010Merck$6 billion$107.00$106.4909/30/2010 0.48% 1.52%
+BWY03/29/2010Madison Dearborn Partners, LLC ("MDP")$915 million$20.00$19.9408/16/2010 0.30% 1.56%
+NGA04/01/2010AZZ Inc.$125.6 million$7.50$7.4908/31/2010 0.13% 0.56%
+TSFG05/17/2010TD Bank Financial Group$61 million$0.28$0.2809/30/2010 0.00% 0.00%
+OSIP05/17/2010Astellas Pharma$3.5 billion$57.50$57.5006/30/2010 0.00% 0.00%
+PALM04/28/2010Hewlett – Packard$1.2 billion$5.70$5.7007/31/2010 0.00% 0.00%
+GNA06/02/2010Gerdau$1.7 billion$11.00$11.02N/A -0.18% 0.00%
+MCCC06/01/2010Chief Executive Rocco Commisso$590 million$6.00$6.25N/A -4.00% 0.00%
+DTG04/26/2010Hertz$1.3 billion$39.31$44.9012/31/2010 -12.46% -21.97%
+SMMX04/05/2010Accelrys Inc.$186 million$5.19$6.3206/30/2010 -17.91% -284.22%
+CCE02/25/2010The Coca-Cola Company$12.3 billion$0.00$25.8210/01/2010 N/A N/A