Merger Arbitrage Mondays – August 16, 2010

  • August 16, 2010

When compared to the past few weeks, there was a significant increase in merger activity last week with eight new deals announced and four deals closing.

The new all-cash deals  include the acquisition of Superior Well Services (SWSI) by Nabors (NBR) for $22.12 per share in cash, the acquisition of Penwest Pharmaceuticals (PPCO) by Endo Pharmaceuticals (ENDP) for $5.00 per share in cash, the acquisition of Unica(UNCA) by IBM (IBM) for $21 per share in cash and the acquisition of Dynegy (DYN) by the Blackstone Group (BX) for $4.50 per share in cash.

The new all-stock or cash plus stock deals include the acquisition of Inergy Holdings (NRGP) by Inergy (NRGY) in an all stock deal where Inergy Holdings shareholders will receive 0.77 NRGY common units in exchange for each NRGP common unit, the acquisition of Comm Bancorp (CCBP) by F.N.B. Corporation (FNB) in a cash plus stock deal where Comm Bancorp shareholders will receive 3.4545 shares of F.N.B. common stock and $10.00 in cash for each share of Comm Bancorp held on the completion of the merger, the acquisition of Allis-Chalmers Energy (ALY) by Seawell where Allis-Chalmers stockholders will have the right to elect $4.25 in cash or 1.15 Seawell common shares for each share of Allis-Chalmers common stock, subject to proration if more than 35% of the shares elect to receive cash.

The acquisition of Trubion Pharmaceuticals (TRBN) by Emergent Biosolutions (EBS) is a new deal with special conditions where Trubion Pharmaceuticals shareholders will receive $1.365 per share in cash and 0.1641 shares of Emergent BioSolutions common stock per share held, plus one Contingent Value Right (CVR) per share, which will entitle the holder to receive cash payments based upon achievement of the following predefined milestones:

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

Profit

+TLCR06/07/2010Grifols (GRF.MC)$3.4 billion$26.32$22.2512/31/2010 18.29% 48.73%
+EMMS05/25/2010JS Acquisition and Alden Global Capital (N/A)$3 billion$2.40$2.052509/30/2010 16.93% 137.33%
+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.40$2.0509/30/2010 16.88% 136.90%
+ALY08/12/2010SeaDrill (N/A)$890 million$4.25$3.7012/31/2010 14.86% 39.60%
+SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$19.5 million$7.25$6.34109/30/2010 14.34% 116.28%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$24.17$22.2703/31/2011 8.54% 13.73%
+PINN02/24/2010Investor Group lead by Scotia Waterous (USA) (N/A)$11 million$0.34$0.322208/21/2010 5.52% 403.29%
+Q04/22/2010Century Link (CTL)$10.6 billion$6.00$5.6904/21/2011 5.43% 7.99%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$43.90$42.1712/31/2010 4.10% 10.93%
+ATAC07/19/2010Genco Distribution System Inc. (N/A)$513 million$25.00$24.0212/31/2010 4.08% 10.87%
+BNE02/24/2010RR Donnelley (RRD)$481 million$11.50$11.1209/30/2010 3.42% 27.72%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$37.19$36.0012/31/2010 3.30% 8.78%
+ALOY06/24/2010ZelnickMedia (N/A)$126.5 million$9.80$9.5012/31/2010 3.16% 8.41%
+TTIL06/09/2010Teoco Corp. (N/A)$58 million$3.00$2.9109/30/2010 3.09% 25.09%
+VETS06/02/2010VCA Antech Inc (WOOF)$41.25 million$0.34$0.3309/30/2010 3.03% 24.58%
+XJT08/04/2010SkyWest (SKYW)$133 million$6.75$6.5812/31/2010 2.58% 6.88%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.71$11.4308/31/2010 2.45% 59.61%
+SMTB07/15/2010People's United Financial Inc. (PBCT)$60 million$3.89$3.8012/31/2010 2.36% 6.29%
+DIVX06/02/2010Sonic Solutions (SNIC)$323 million$7.76$7.5909/30/2010 2.30% 18.63%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$10.18$9.9712/31/2010 2.08% 5.55%
+OMNI06/04/2010Wellspring Capital Management (N/A)$122 million$2.75$2.7011/15/2010 1.85% 7.43%
+NTY07/15/2010The Carlyle Group (N/A)$3.8 billion$55.00$54.0112/31/2010 1.83% 4.88%
+TSFG05/17/2010TD Bank Financial Group (N/A)$61 million$0.28$0.27509/30/2010 1.82% 14.75%
+GLG05/17/2010Man Group (N/A)$1.6 billion$4.50$4.4209/30/2010 1.81% 14.68%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$33.1612/31/2010 1.78% 4.74%
+ACF07/22/2010General Motors Co. (N/A)$3.5 billion$24.50$24.0812/31/2010 1.74% 4.65%
+NRGP08/09/2010Inergy (NRGY)$2.07 billion$30.48$30.0012/31/2010 1.59% 4.23%
+LSBX07/15/2010People's United Financial Inc. (PBCT)$96 million$21.00$20.7012/31/2010 1.45% 3.86%
+WMZ05/24/2010Williams Partners L.P. (WPZ)$32.85$32.3809/30/2010 1.44% 11.68%
+ECLP06/09/2010Allscripts-Misys Healthcare (MDRX)$1.3 billion$20.32$20.0611/15/2010 1.28% 5.12%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.4512/31/2010 1.24% 3.30%
+PMACA06/10/2010Old Republic International (ORI)$228 million$6.85$6.7709/30/2010 1.14% 9.29%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.4612/31/2010 1.14% 3.03%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.6112/31/2010 1.11% 2.96%
+HEW07/12/2010Aon Corp (AON)$4.9 billion$49.09$48.5611/15/2010 1.10% 4.40%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$18.8012/31/2010 1.06% 2.83%
+WEL04/09/2010Halliburton Company (HAL)$240 million$3.00$2.9709/30/2010 1.01% 8.19%
+AEZ07/28/2010Hess Corp (HES)$450 million$7.25$7.1812/31/2010 0.91% 2.42%
+SWWC03/03/2010Institutional Investors (N/A)$275 million$11.00$10.9103/31/2011 0.82% 1.33%
+ME04/15/2010Apache (APA)$2.7 billion$23.35$23.1709/30/2010 0.79% 6.42%
+ACAP07/08/2010The Doctors Company (N/A)$386 million$41.50$41.1812/31/2010 0.78% 2.07%
+UNCA08/13/2010IBM (IBM)$480 million$21.00$20.8412/31/2010 0.77% 2.05%
+GNA06/02/2010Gerdau (GGB)$1.7 billion$11.00$10.9208/31/2010 0.73% 17.83%
+MEND07/12/2010Johnson & Johnson (JNJ)$480 million$23.40$23.2309/30/2010 0.73% 5.94%
+PPCO08/09/2010Endo Pharmaceuticals (ENDP)$144 million$5.00$4.9712/31/2010 0.60% 1.61%
+RCNI03/05/2010ABRY Partners (N/A)$536 million$15.00$14.9109/30/2010 0.60% 4.90%
+RUBO05/10/2010Mill Road Capital (N/A)$91 million$8.70$8.6508/23/2010 0.58% 30.14%
+VIRL06/10/2010Synopsys (SNPS)$315 million$12.00$11.9612/31/2010 0.33% 0.89%
+BXC07/22/2010Cerberus Capital Management (N/A)$111.1 million$3.40$3.3912/31/2010 0.29% 0.79%
+SII02/19/2010Schlumberger (SLB)$7.5 billion$40.93$40.8209/30/2010 0.27% 2.23%
+QUOT06/11/2010LQ Acquisition (N/A)$19 million$4.00$3.9909/30/2010 0.25% 2.03%
+HGRD07/28/2010an affiliate of the private equity firm Vestar Capital (N/A)$294 million$8.20$8.1809/30/2010 0.24% 1.98%
+BSMD05/13/2010Merit Medical Systems (MMSI)$96 million$4.38$4.3709/30/2010 0.23% 1.86%
+SWSI08/09/2010Nabors Industries (NBR)$900 million$22.12$22.0909/30/2010 0.14% 1.10%
+ODSY05/24/2010Gentiva Health Services (GTIV)$1.0 billion$27.00$26.9809/30/2010 0.07% 0.60%
+SXE05/07/2010CGI Group (N/A)$904 million$37.50$37.5009/30/2010 0.00% 0.00%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$4.5312/31/2010 -0.66% -1.76%
+CPII05/10/2010Comtech (CMTL)$472.3 million$13.88$13.9809/30/2010 -0.69% -5.56%
+CAL05/03/2010United (UAUA)$1.2 billion$22.56$22.8112/31/2010 -1.08% -2.87%
+VRX06/21/2010Biovail Corporation (BVF)$3.3 billion$56.84$57.7512/31/2010 -1.58% -4.20%
+ABII06/30/2010Celgene (CELG)$2.9 billion$72.57$75.3312/31/2010 -3.67% -9.77%
+TRBN08/12/2010Emergent BioSolution (EBS)$96.8 million$4.23$4.5012/31/2010 -6.11% -16.27%
+MCCC06/01/2010Chief Executive Rocco Commisso (N/A)$590 million$6.00$6.81N/A -11.89% 0.00%
+DTG04/26/2010Hertz (HTZ)$1.3 billion$38.80$47.4512/31/2010 -18.22% -48.55%
+CCE02/25/2010The Coca-Cola Company (KO)$12.3 billionN/A$28.7110/01/2010 N/A N/A