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Merger Arbitrage Mondays – July 05, 2010

  • July 5, 2010

The activity on the Merger and Acquisition front increased again last week with three new deals being announced and four deals closing.

The new deals announced include the acquisition of Wainwright Bank & Trust Company (WAIN) by Eastern Bank for $19 per share in cash, the acquisition of Abraxis (ABII) by Celgene (CELG) in a cash plus stock deal where shareholders of Abraxis will receive $58 and 0.2617 shares of Celgene for each Abraxis share they own, and the acquisition of Argon ST (STST) by Boeing (BA) for $34.50 per share in cash.

The deals that closed include the acquisition of Symyx Technolgies (SMMX) by Accelrys (ACCL) on June 30, 2010, the acquisition of Thomas Weisel Partners Group (TWPG) by Stifel Financial (SF) on June 30, 2010, the acquisition of Infogroup (IUSA) by affiliates of CCMP Capital Advisors on July 01, 2010 and the acquisition of HealthTronics (HTRN) by Endo Pharmaceuticals (ENDP) on July 02, 2010.

While the injunction on the Portec Rail Products (PRPX) acquisition by L. B. Foster (FSTR) was lifted, the DOJ investigation is ongoing and hence we have updated the closing date for that deal to 8/31/2010.

Voluntary Disclosure: I own long positions in Coca-Cola Enterprises (CCE) and Portec Rail Products (PRPX) in my personal portfolio.

 SymbolAnnounced
Date
Acquiring
Company
Closing
Value
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.

Profit

+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.83$2.1009/30/2010 34.76% 145.84%
+WX04/26/2010Charles River Laboratories (CRL)$1.6 billion$20.25$15.8512/31/2010 27.76% 56.60%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$23.08$20.1403/31/2011 14.59% 19.80%
+SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$19.5 million$7.25$6.4508/16/2010 12.40% 107.79%
+EMMS05/25/2010JS Acquisition and Alden Global Capital (N/A)$3 billion$2.40$2.2009/30/2010 9.09% 38.14%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$41.03$38.2012/31/2010 7.41% 15.11%
+ECLP06/09/2010Allscripts-Misys Healthcare (MDRX)$1.3 billion$18.92$17.6911/15/2010 6.98% 19.14%
+DIVX06/02/2010Sonic Solutions (SNIC)$323 million$7.72$7.2609/30/2010 6.38% 26.77%
+EFJI05/17/2010Francisco Partners (N/A)N/A$1.50$1.4209/30/2010 5.63% 23.64%
+Q04/22/2010Century Link (CTL)$10.6 billion$5.52$5.2404/21/2011 5.27% 6.63%
+PINN02/24/2010Investor Group lead by Scotia Waterous (USA) (N/A)$11 million$0.34$0.323508/21/2010 5.10% 39.61%
+ALOY06/24/2010ZelnickMedia (N/A)$126.5 million$9.80$9.3812/31/2010 4.48% 9.13%
+TTIL06/09/2010Teoco Corp. (N/A)$58 million$3.00$2.8809/30/2010 4.17% 17.48%
+SWWC03/03/2010Institutional Investors (N/A)$275 million$11.00$10.6003/31/2011 3.77% 5.12%
+TSFG05/17/2010TD Bank Financial Group (N/A)$61 million$0.28$0.2709/30/2010 3.70% 15.54%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.71$11.3608/31/2010 3.08% 19.73%
+GLG05/17/2010Man Group (N/A)$1.6 billion$4.50$4.3709/30/2010 2.97% 12.48%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$32.7912/31/2010 2.93% 5.97%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$18.4712/31/2010 2.87% 5.85%
+VETS06/02/2010VCA Antech Inc (WOOF)$41.25 million$0.34$0.33109/30/2010 2.72% 11.41%
+ME04/15/2010Apache (APA)$2.7 billion$21.92$21.3609/30/2010 2.62% 11.00%
+BNE02/24/2010RR Donnelley (RRD)$481 million$11.50$11.2209/30/2010 2.50% 10.47%
+ODSY05/24/2010Gentiva Health Services (GTIV)$1.0 billion$27.00$26.3709/30/2010 2.39% 10.02%
+SII02/19/2010Schlumberger (SLB)$7.5 billion$38.29$37.5209/30/2010 2.04% 8.56%
+ORCD03/16/2010eMusic (N/A)$12.77 million$2.05$2.0108/16/2010 1.99% 17.29%
+CYBS04/21/2010Visa Inc. (V)$2.0 billion$26.00$25.5209/30/2010 1.88% 7.89%
+PMACA06/10/2010Old Republic International (ORI)$228 million$6.62$6.5009/30/2010 1.88% 7.87%
+PFWD04/16/2010Oracle Corp. (ORCL)$685 million$17.00$16.7006/30/2010 1.80% 0.00%
+IDC05/04/2010Silver Lake & Warburg Pincus (N/A)$3.4 billion$33.86$33.3109/30/2010 1.65% 6.93%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.3012/31/2010 1.58% 3.22%
+OMNI06/04/2010Wellspring Capital Management (N/A)$122 million$2.75$2.7111/15/2010 1.48% 4.05%
+BSMD05/13/2010Merit Medical Systems (MMSI)$96 million$4.38$4.3209/30/2010 1.39% 5.83%
+VTIV05/06/2010Thomas H. Lee Partners (N/A)$1.1 billion$26.00$25.6509/30/2010 1.36% 5.72%
+WEL04/09/2010Halliburton Company (HAL)$240 million$3.00$2.9609/30/2010 1.35% 5.67%
+ATSI04/29/2010Medtronic (MDT)$350 million$4.00$3.9609/30/2010 1.01% 4.24%
+VIRL06/10/2010Synopsys (SNPS)$315 million$12.00$11.8812/31/2010 1.01% 2.06%
+RCNI03/05/2010ABRY Partners (N/A)$536 million$15.00$14.8609/30/2010 0.94% 3.95%
+STBK03/18/2010Roma Financial Corp (ROMA)$14.7 million$2.52$2.500108/16/2010 0.80% 6.92%
+MDNU06/11/2010Danone (N/A)$62.3 million$4.00$3.96909/30/2010 0.78% 3.28%
+RBI03/15/2010affiliate of Oncap Management Partners L.P. (N/A)$13.55$13.4508/16/2010 0.74% 6.46%
+NADX04/05/2010GDC Holdings Inc. (N/A)$100 million$17.00$16.8809/30/2010 0.71% 2.98%
+STST06/30/2010Boeing (BA)$775 million$34.50$34.2709/30/2010 0.67% 2.82%
+GNA06/02/2010Gerdau (GGB)$1.7 billion$11.00$10.9408/31/2010 0.55% 3.51%
+CPII05/10/2010Comtech (CMTL)$472.3 million$15.46$15.3809/30/2010 0.52% 2.17%
+QUOT06/11/2010LQ Acquisition (N/A)$19 million$4.00$3.9809/30/2010 0.50% 2.11%
+VRAD05/17/2010Providence Equity (N/A)$294 million$17.25$17.1709/30/2010 0.47% 1.95%
+SY05/12/2010SAP (SAP)$5.8 billion$65.00$64.7009/30/2010 0.46% 1.95%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$10.69$10.6412/31/2010 0.45% 0.92%
+EVVV06/01/2010Covidien plc (COV)$2.6 billion$22.50$22.4107/31/2010 0.40% 5.64%
+SBP06/24/2010ABLASA (N/A)N/A$12.69$12.6407/22/2010 0.40% 8.49%
+DBTK05/17/2010Vision Solutions (N/A)$242 million$10.55$10.5109/30/2010 0.38% 1.60%
+MIL03/01/2010Merck (MRK)$6 billion$107.00$106.6309/30/2010 0.35% 1.46%
+WMZ05/24/2010Williams Partners L.P. (WPZ) $31.75$31.6409/30/2010 0.34% 1.41%
+SMTS06/16/2010Covidien (COV)$299 million$25.00$24.9307/31/2010 0.28% 3.94%
+AIPC06/21/2010Ralcorp Holdings (RAH)$1.2 billion$53.00$52.8709/30/2010 0.25% 1.03%
+DCP04/12/2010Cerberus Capital Management (N/A)$1.5 billion$17.55$17.5111/15/2010 0.23% 0.63%
+SXE05/07/2010CGI Group (N/A)$904 million$37.50$37.4209/30/2010 0.21% 0.90%
+PALM04/28/2010Hewlett – Packard (HPQ)$1.2 billion$5.70$5.6907/31/2010 0.18% 2.47%
+CKR03/01/2010Apollo Management VII (N/A)$694 million$12.55$12.5307/07/2010 0.16% 29.13%
+SENO05/05/2010Bard (BARD.PK)$200 million$11.00$11.0009/30/2010 0.00% 0.00%
+BELM03/29/2010Avnet (AVT)$252 million$7.00$7.0007/15/2010 0.00% 0.00%
+CRN04/19/2010GeoGroup (GEO)$685 million$26.90$26.9309/30/2010 -0.12% -0.51%
+NGA04/01/2010AZZ Inc. (AZZ)$125.6 million$7.50$7.5208/31/2010 -0.27% -1.70%
+VRX06/21/2010Biovail Corporation (BVF)$3.3 billion$50.38$51.3212/31/2010 -1.84% -3.75%
+SNWL06/03/2010investor group led by private equity firm Thoma Bravo LLC (N/A)$636 million$11.50$11.7812/31/2010 -2.38% -4.85%
+CAL05/03/2010United (UAUA)$1.2 billion$19.52$20.1012/31/2010 -2.89% -5.89%
+ABII06/30/2010Celgene (CELG)$2.9 billion$71.28$74.2512/31/2010 -4.00% -8.16%
+ARD04/04/2010SandRidge Energy Inc. (SD)$1.6 billion$30.78$32.1909/30/2010 -4.38% -18.37%
+DTG04/26/2010Hertz (HTZ)$1.3 billion$38.57$41.7012/31/2010 -7.50% -15.29%
+TLCR06/07/2010Grifols (N/A)$3.4 billion$19.00$21.1612/31/2010 -10.21% -20.82%
+MCCC06/01/2010Chief Executive Rocco Commisso (N/A)$590 million$6.00$6.75N/A -11.11% 0.00%
+CCE02/25/2010The Coca-Cola Company (KO)$12.3 billionN/A$26.0310/01/2010 N/A N/A