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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:

Profit

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