Merger Arbitrage Mondays – July 19, 2010

  • July 18, 2010

Mergers activity bounced back sharply last week with five new deals announced and three deals closing.

The founder of Playboy (PLA) Hugh Hefner made a bid to take the company private is a deal valued at $185 million and is now fighting a competing bid from Penthouse magazine, which has bid $210 million for the company. Since the board is still considering both offers, we have not included the deal in our merger arbitrage table below.

The new deals include the acquisition of Micrus Endovascular (MEND) by Johnson & Johnson (JNJ) for $23.40 per share in an all cash deal, the acquisition of Hewitt Associates (HEW) by Aon (AON) in a cash plus stock deal consisting of $25.61 in cash and 0.6362 in Aon stock, the acquisition of ADC Telecommunication (ADCT) by Tyco Electronics (TEL) for $12.75 per share in an all cash deal, the acquisition of NYMagic (NYM) by ProSight for $25.75 per share in an all cash deal and the acquisition of NBTY (NTY) by The Carlyle Group at $55 per share in an all cash deal.

The deals that closed include the acquisition of CKE Restaurants by an affiliate of Apollo Management,  the acquisition of ev3 by Covidien on July 12, 2010 and the acquisition of Millipore by Merck on July 15, 2010.

If you are new to merger arbitrage, please feel free to check out our introduction to merger arbitrage here. You can also use our automated merger arbitrage tool that constantly updates the profits and annualized profits for all pending deals during market hours.

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

Profit

+WX04/26/2010Charles River Laboratories (CRL)$1.6 billion$20.44$15.7312/31/2010 29.91% 66.17%
+TLCR06/07/2010Grifols (GRF.MC)$3.4 billion$26.07$21.3112/31/2010 22.35% 49.44%
+SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$19.5 million$7.25$6.4008/16/2010 13.28% 173.13%
+EMMS05/25/2010JS Acquisition and Alden Global Capital (N/A)$3 billion$2.40$2.1409/30/2010 12.15% 60.75%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$24.75$22.3003/31/2011 11.00% 15.74%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$43.29$40.15412/31/2010 7.80% 17.26%
+PINN02/24/2010Investor Group lead by Scotia Waterous (USA) (N/A)$11 million$0.34$0.3208/21/2010 6.25% 69.13%
+Q04/22/2010Century Link (CTL)$10.6 billion$5.75$5.4404/21/2011 5.77% 7.64%
+DIVX06/02/2010Sonic Solutions (SNIC)$323 million$7.38$7.027509/30/2010 5.00% 25.00%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.71$11.2208/31/2010 4.37% 37.07%
+ALOY06/24/2010ZelnickMedia (N/A)$126.5 million$9.80$9.4012/31/2010 4.26% 9.41%
+TTIL06/09/2010Teoco Corp. (N/A)$58 million$3.00$2.8809/30/2010 4.17% 20.83%
+EFJI05/17/2010Francisco Partners (N/A)N/A$1.50$1.4509/30/2010 3.45% 17.24%
+PMACA06/10/2010Old Republic International (ORI)$228 million$6.92$6.7009/30/2010 3.27% 16.34%
+GLG05/17/2010Man Group (N/A)$1.6 billion$4.50$4.3609/30/2010 3.21% 16.06%
+ECLP06/09/2010Allscripts-Misys Healthcare (MDRX)$1.3 billion$20.12$19.5211/15/2010 3.09% 9.49%
+VETS06/02/2010VCA Antech Inc (WOOF)$41.25 million$0.34$0.330109/30/2010 3.00% 15.00%
+NTY07/15/2010The Carlyle Group (N/A)$3.8 billion$55.00$53.4512/31/2010 2.90% 6.41%
+HEW07/12/2010Aon Corp (AON)$4.9 billion$48.67$47.3011/15/2010 2.89% 8.86%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$43.8512/31/2010 2.62% 5.80%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$32.9012/31/2010 2.58% 5.72%
+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.59$2.5309/30/2010 2.53% 12.65%
+SWWC03/03/2010Institutional Investors (N/A)$275 million$11.00$10.7403/31/2011 2.42% 3.47%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$10.97$10.7212/31/2010 2.35% 5.19%
+OMNI06/04/2010Wellspring Capital Management (N/A)$122 million$2.75$2.6911/15/2010 2.23% 6.84%
+BNE02/24/2010RR Donnelley (RRD)$481 million$11.50$11.2609/30/2010 2.13% 10.66%
+ME04/15/2010Apache (APA)$2.7 billion$21.90$21.4509/30/2010 2.11% 10.56%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$18.6512/31/2010 1.88% 4.15%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.5212/31/2010 1.84% 4.06%
+TSFG05/17/2010TD Bank Financial Group (N/A)$61 million$0.28$0.27509/30/2010 1.82% 9.09%
+ACAP07/08/2010The Doctors Company (N/A)$386 million$41.50$40.7712/31/2010 1.79% 3.96%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.3112/31/2010 1.74% 3.85%
+ODSY05/24/2010Gentiva Health Services (GTIV)$1.0 billion$27.00$26.557509/30/2010 1.67% 8.33%
+WMZ05/24/2010Williams Partners L.P. (WPZ)$34.29$33.8209/30/2010 1.40% 7.02%
+WEL04/09/2010Halliburton Company (HAL)$240 million$3.00$2.9609/30/2010 1.35% 6.76%
+PFWD04/16/2010Oracle Corp. (ORCL)$685 million$17.00$16.7906/30/2010 1.25% 0.00%
+STBK03/18/2010Roma Financial Corp (ROMA)$14.7 million$2.52$2.4908/16/2010 1.20% 15.71%
+VIRL06/10/2010Synopsys (SNPS)$315 million$12.00$11.8812/31/2010 1.01% 2.23%
+RCNI03/05/2010ABRY Partners (N/A)$536 million$15.00$14.8709/30/2010 0.87% 4.37%
+MEND07/12/2010Johnson & Johnson (JNJ)$480 million$23.40$23.2009/30/2010 0.86% 4.31%
+SII02/19/2010Schlumberger (SLB)$7.5 billion$39.48$39.1509/30/2010 0.85% 4.26%
+VTIV05/06/2010Thomas H. Lee Partners (N/A)$1.1 billion$26.00$25.8009/30/2010 0.78% 3.88%
+MDNU06/11/2010Danone (N/A)$62.3 million$4.00$3.9709/30/2010 0.76% 3.78%
+ATSI04/29/2010Medtronic (MDT)$350 million$4.00$3.9709/30/2010 0.76% 3.78%
+BSMD05/13/2010Merit Medical Systems (MMSI)$96 million$4.38$4.3509/30/2010 0.69% 3.45%
+RBI03/15/2010affiliate of Oncap Management Partners L.P. (N/A)$13.55$13.4608/16/2010 0.67% 8.72%
+DBTK05/17/2010Vision Solutions (N/A)$242 million$10.55$10.4809/30/2010 0.67% 3.34%
+IDC05/04/2010Silver Lake & Warburg Pincus (N/A)$3.4 billion$33.86$33.6709/30/2010 0.56% 2.82%
+GNA06/02/2010Gerdau (GGB)$1.7 billion$11.00$10.9408/31/2010 0.55% 4.66%
+NADX04/05/2010GDC Holdings Inc. (N/A)$100 million$17.00$16.9109/30/2010 0.53% 2.66%
+QUOT06/11/2010LQ Acquisition (N/A)$19 million$4.00$3.9809/30/2010 0.50% 2.51%
+ORCD03/16/2010eMusic (N/A)$12.77 million$2.05$2.0408/16/2010 0.49% 6.39%
+CRN04/19/2010GeoGroup (GEO)$685 million$27.39$27.2609/30/2010 0.48% 2.40%
+SNWL06/03/2010investor group led by private equity firm Thoma Bravo LLC (N/A)$636 million$11.50$11.4512/31/2010 0.44% 0.97%
+CPII05/10/2010Comtech (CMTL)$472.3 million$15.95$15.8909/30/2010 0.37% 1.87%
+VRAD05/17/2010Providence Equity (N/A)$294 million$17.25$17.2009/30/2010 0.29% 1.45%
+STST06/30/2010Boeing (BA)$775 million$34.50$34.4009/30/2010 0.29% 1.45%
+SXE05/07/2010CGI Group (N/A)$904 million$37.50$37.4009/30/2010 0.27% 1.34%
+SY05/12/2010SAP (SAP)$5.8 billion$65.00$64.8309/30/2010 0.26% 1.31%
+SMTS06/16/2010Covidien (COV)$299 million$25.00$24.9407/31/2010 0.24% 7.32%
+SBP06/24/2010ABLASA (N/A)N/A$12.69$12.6607/22/2010 0.24% 28.83%
+CYBS04/21/2010Visa Inc. (V)$2.0 billion$26.00$25.9609/30/2010 0.15% 0.77%
+AIPC06/21/2010Ralcorp Holdings (RAH)$1.2 billion$53.00$52.9409/30/2010 0.11% 0.57%
+NGA04/01/2010AZZ Inc. (AZZ)$125.6 million$7.50$7.5008/31/2010 0.00% 0.00%
+VRX06/21/2010Biovail Corporation (BVF)$3.3 billion$53.26$53.5812/31/2010 -0.60% -1.32%
+CAL05/03/2010United (UAUA)$1.2 billion$22.42$22.8612/31/2010 -1.94% -4.28%
+ABII06/30/2010Celgene (CELG)$2.9 billion$71.62$74.3712/31/2010 -3.70% -8.18%
+ARD04/04/2010SandRidge Energy Inc. (SD)$1.6 billion$33.93$35.9809/30/2010 -5.69% -28.44%
+MCCC06/01/2010Chief Executive Rocco Commisso (N/A)$590 million$6.00$6.73N/A -10.85% 0.00%
+DTG04/26/2010Hertz (HTZ)$1.3 billion$39.19$46.2212/31/2010 -15.22% -33.67%
+CCE02/25/2010The Coca-Cola Company (KO)$12.3 billionN/A$27.6910/01/2010 N/A N/A

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