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Merger Arbitrage Mondays – August 23, 2010

  • August 23, 2010
Total Number of Deals Closed in 201056
Total Number of Deals That Did Not Complete in 20102
Total Number of Pending Deals
Cash Deals48
Stock Deals11
Stock & Cash Deals12
Deals with Special Conditions00
Total Number of Pending Deals71

Merger activity continued to remain high last week with eight new deals announced and three deals closing. However the value of deals driven by Intel’s $7.68 billion bid for McAfee (MFE) was much higher when compared to last week even without including BHP Billiton’s $40 billion hostile bid for Potash Corp of Saskatchewan (POT). As an Intel shareholders I am very disappointed with the company’s decision to purchase McAfee. While security at the silicon level makes sense, spending $7.68 billion from Intel’s $18.3 billion cash war chest towards this goal makes little sense. It would have been much more preferable for Intel to return value to shareholders through share buybacks or raising its dividend.

It was also interesting to see that one of the 11 banks on my watch list of regional banks, First Niagara Financial Group (FNFG), acquired another one from my list New Alliance Bancshares (NAL).

New Deals Announced Last Week:

  1. The acquisition of 3PAR (PAR) by Dell (DELL) for $18 per share in cash
  2. The acquisition of ICx Technologies (ICXT) by FLIR Systems (FLIR) for $7.55 per share in cash
  3. The acquisition of Osteotech (OSTE) by Medtronic (MDT) for $6.50 per share in cash
  4. The acquisition of Pactiv Corporation (PTV) by Reynolds Group Holdings for $33.25 per share in cash
  5. The acquisition of Prospect Medical Holdings (PZZ) by Leonard Green & Partners for $8.50 per share in cash
  6. The acquisition of Phoenix Technologies (PTEC) by Marlin Equity Partners for $3.85 per share in cash
  7. The acquisition of McAfee (MFE) by Intel (INTC) for $48 per share in cash
  8. The acquisition of New Alliance Bancshares (NAL) by First Niagara Financial Group (FNFG)  for $14.09 per share in cash and stock

The deals that closed include,

  1. The acquisition of Odyssey HealthCare (ODSY) by Gentiva Health Services (GTIV) on August 17, 2010
  2. The acquisition of Stanley (SXE) by CGI Group (GIB) on August 17, 2010
  3. The acquisition of Life Quotes (QUOT) by LQ acquisition on August 16, 2010

Top 10 Deals

  1. The acquisition of Atlantic BancGroup Inc (ATBC) by Jacksonville Bancorp (JAXB)
  2. The acquisition of Talecris (TLCR) by Grifols (GRF.MC)
  3. The acquisition of Southern Connecticut Bancorp (SSE) by Naugatuck Valley Financial Corp (NVSL)
  4. The acquisition of Emmis Communications Corporation (EMMS) by JS Acquisition and Alden Global Capital
  5. The acquisition of New Alliance Bancshares (NAL) by First Niagara Financial Group (FNFG)
  6. The acquisition of Allegheny Energy, Inc. (AYE) by FirstEnergy (FE)
  7. The acquisition of Qwest Communications International (Q) by Century Link (CTL)
  8. The acquisition of Allis-Chalmers Energy, Inc. (ALY) by SeaDrill
  9. The acquisition of PET DRx Corp (VETS) by VCA Antech Inc (WOOF)
  10. The acquisition of ATC Technology (ATAC) by Genco Distribution System Inc.

List of All Pending Deals with Details

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

Profit

+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.49$2.0009/30/201024.50%235.33%
+TLCR06/07/2010Grifols (GRF.MC)$3.4 billion$26.70$22.2312/31/201020.12%56.48%
+SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$19.5 million$7.25$6.1009/30/201018.85%181.08%
+EMMS05/25/2010JS Acquisition and Alden Global Capital (N/A)$3 billion$2.40$2.0909/30/201014.83%142.47%
+NAL08/19/2010First Niagara Financial Group (FNFG)$1.5 billion$14.09$12.9705/15/20118.64%11.89%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$23.91$22.0403/31/20118.46%14.04%
+Q04/22/2010Century Link (CTL)$10.6 billion$5.99$5.6504/21/20116.00%9.08%
+ALY08/12/2010SeaDrill (N/A)$890 million$4.25$4.0512/31/20104.94%13.87%
+VETS06/02/2010VCA Antech Inc (WOOF)$41.25 million$0.34$0.326509/30/20104.13%39.72%
+ATAC07/19/2010Genco Distribution System Inc. (N/A)$513 million$25.00$24.0912/31/20103.78%10.61%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$44.32$42.7412/31/20103.69%10.36%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$36.84$35.6112/31/20103.46%9.71%
+BNE02/24/2010RR Donnelley (RRD)$481 million$11.50$11.1509/30/20103.14%30.15%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.71$11.3608/31/20103.08%140.57%
+PINN02/24/2010Investor Group lead by Scotia Waterous (USA) (N/A)$11 million$0.34$0.3308/21/20103.03%0.00%
+BXC07/22/2010Cerberus Capital Management (N/A)$111.1 million$3.40$3.3012/31/20103.03%8.51%
+NRGP08/09/2010Inergy (NRGY)$2.07 billion$30.60$29.7512/31/20102.86%8.02%
+PTV08/17/2010Reynolds Group Holdings (N/A)$6 billion$33.25$32.3612/31/20102.75%7.72%
+TTIL06/09/2010Teoco Corp. (N/A)$58 million$3.00$2.9209/30/20102.74%26.32%
+ALOY06/24/2010ZelnickMedia (N/A)$126.5 million$9.80$9.5512/31/20102.62%7.35%
+DIVX06/02/2010Sonic Solutions (SNIC)$323 million$7.88$7.7009/30/20102.37%22.77%
+XJT08/04/2010SkyWest (SKYW)$133 million$6.75$6.6012/31/20102.27%6.38%
+TSFG05/17/2010TD Bank Financial Group (N/A)$61 million$0.28$0.27409/30/20102.19%21.03%
+MFE08/19/2010Intel Corporation (INTC)$7.68 billion$48.00$47.0312/31/20102.06%5.79%
+PMACA06/10/2010Old Republic International (ORI)$228 million$6.87$6.7409/30/20101.92%18.46%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$3.7812/31/20101.85%5.20%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$3.7812/31/20101.85%5.20%
+NTY07/15/2010The Carlyle Group (N/A)$3.8 billion$55.00$54.0012/31/20101.85%5.20%
+OSTE08/17/2010Medtronic (MDT)$123 million$6.50$6.3912/31/20691.72%0.03%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$18.6812/31/20101.71%4.81%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$33.2112/31/20101.63%4.57%
+GLG05/17/2010Man Group (N/A)$1.6 billion$4.50$4.4309/30/20101.58%15.18%
+ACF07/22/2010General Motors Co. (N/A)$3.5 billion$24.50$24.1212/31/20101.58%4.42%
+OMNI06/04/2010Wellspring Capital Management (N/A)$122 million$2.75$2.7111/15/20101.48%6.41%
+LSBX07/15/2010People’s United Financial Inc. (PBCT)$96 million$21.00$20.7112/31/20101.40%3.93%
+WMZ05/24/2010Williams Partners L.P. (WPZ)$32.64$32.2209/30/20101.31%12.57%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.6212/31/20101.03%2.89%
+HEW07/12/2010Aon Corp (AON)$4.9 billion$49.09$48.6411/15/20100.93%4.04%
+ME04/15/2010Apache (APA)$2.7 billion$23.23$23.0209/30/20100.91%8.72%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.5212/31/20100.90%2.53%
+SMTB07/15/2010People’s United Financial Inc. (PBCT)$60 million$3.89$3.859912/31/20100.87%2.43%
+UNCA08/13/2010IBM (IBM)$480 million$21.00$20.8312/31/20100.82%2.29%
+SWWC03/03/2010Institutional Investors (N/A)$275 million$11.00$10.9203/31/20110.73%1.22%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.6812/31/20100.72%2.01%
+ACAP07/08/2010The Doctors Company (N/A)$386 million$41.50$41.2112/31/20100.70%1.98%
+BSMD05/13/2010Merit Medical Systems (MMSI)$96 million$4.38$4.3509/30/20100.69%6.62%
+WEL04/09/2010Halliburton Company (HAL)$240 million$3.00$2.9809/30/20100.67%6.45%
+RCNI03/05/2010ABRY Partners (N/A)$536 million$15.00$14.9009/30/20100.67%6.45%
+AEZ07/28/2010Hess Corp (HES)$450 million$7.04$7.0012/31/20100.50%1.41%
+VIRL06/10/2010Synopsys (SNPS)$315 million$12.00$11.9412/31/20100.50%1.41%
+HGRD07/28/2010an affiliate of the private equity firm Vestar Capital (N/A)$294 million$8.20$8.1609/30/20100.49%4.71%
+MEND07/12/2010Johnson & Johnson (JNJ)$480 million$23.40$23.2909/30/20100.47%4.54%
+GNA06/02/2010Gerdau (GGB)$1.7 billion$11.00$10.9508/31/20100.46%20.83%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$9.89$9.8712/31/20100.24%0.69%
+SII02/19/2010Schlumberger (SLB)$7.5 billion$39.33$39.2409/30/20100.23%2.20%
+SWSI08/09/2010Nabors Industries (NBR)$900 million$22.12$22.0709/30/20100.23%2.18%
+RUBO05/10/2010Mill Road Capital (N/A)$91 million$8.70$8.6908/23/20100.12%0.00%
+ECLP06/09/2010Allscripts-Misys Healthcare (MDRX)$1.3 billion$21.01$21.0211/15/2010-0.04%-0.17%
+PAR08/16/2010Dell (DELL)$1.15 billion$18.00$18.0412/31/2010-0.22%-0.62%
+PZZ08/16/2010Leonard Green & Partners (N/A)$363 million$8.50$8.5312/31/2010-0.35%-0.99%
+CAL05/03/2010United (UAUA)$1.2 billion$21.54$21.7412/31/2010-0.94%-2.64%
+VRX06/21/2010Biovail Corporation (BVF)$3.3 billion$56.80$57.3612/31/2010-0.97%-2.72%
+PPCO08/09/2010Endo Pharmaceuticals (ENDP)$144 million$5.00$5.0512/31/2010-0.99%-2.78%
+ICXT08/16/2010FLIR Systems (FLIR)$274 million$7.55$7.6512/31/2010-1.31%-3.67%
+CPII05/10/2010Comtech (CMTL)$472.3 million$13.73$13.9709/30/2010-1.71%-16.46%
+ABII06/30/2010Celgene (CELG)$2.9 billion$72.05$74.4312/31/2010-3.20%-9.00%
+TRBN08/12/2010Emergent BioSolution (EBS)$96.8 million$4.25$4.4712/31/2010-5.00%-14.03%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$4.7812/31/2010-5.86%-16.45%
+MCCC06/01/2010Chief Executive Rocco Commisso (N/A)$590 million$6.00$6.76N/A-11.24%0.00%
+DTG04/26/2010Hertz (HTZ)$1.3 billion$38.66$48.1512/31/2010-19.72%-55.36%
+CCE02/25/2010The Coca-Cola Company (KO)$12.3 billionN/A$29.0210/01/2010N/AN/A

Contributing Author: Ann Kumar