Merger Arbitrage Mondays – August 30, 2010

  • August 30, 2010

Merger activity decreased significantly last week with just one new deal being announced, one deal modified and four deals closing. A deal that was long rumored was also announced on Sunday when French drug maker Sanofi-Aventis disclosed its $18.5 billion bid for Genzyme for $69 in cash.

Based on feedback received, we have modified the format of these posts and we hope that you find this new format useful.

Deal Statistics:

Total Number of Deals Closed in 201060
Total Number of Deals That Did Not Complete in 20102
Total Number of Pending Deals
Cash Deals47
Stock Deals9
Stock & Cash Deals12
Total Number of Pending Deals68


New Deals:

The acquisition of Diamond Management & Technology Consultants (DTPI) by PricewaterhouseCoopers for a closing value of $378 million at $12.50 per share in cash

Closed Deals:

1. The acquisition of TTI Telecom (TTIL) by TEOCO Corporation on August 23, 2010

2. The acquisition of Eclipsys Corporation (ECLP) by Allscripts – Misys Healthcare (MDRX) on August 25, 2010

3. The acquisition of RCN Corporation (RCNI) by ABRY Partners on August 26, 2010

4. The acquisition of Smith International (SII) by Schlumberger on August 27, 2010

Modified Deals:

The acquisition of 3PAR (PAR) by Hewlett-Packard Company (HPQ) for a closing value of $2 billion at $30 per share in cash. After a whole week of bidding war, 3PAR accepted HP’s superior bid. Dell now has three days to come back with a counter offer.

A Short History of the Dell-HP-3PAR Saga:

August 28, 2010: 3Par accepts HP’s ‘superior’ $2B offer

August 27, 2010: Donatelli seen driving HP bidding war for 3Par

August 27, 2010: HP raises 3Par bid to $2B, now it’s Dell’s turn

August 27, 2010: HP tops Dell again with $2B 3Par bid

August 26, 2010: HP again boosts offer for 3Par, this time to $1.8B

August 26, 2010: Dell boosts offer for 3Par

August 26, 2010: HP again boosts offer for 3Par, this time to $1.8B

August 25, 2010: 3Par open to new Dell offer

August 25, 2010: 3Par to talk with HP, open to new Dell bid

August 24, 2010: 3Par up again as Dell mulls higher offer

August 24, 2010: Dell could sweeten offer for 3Par

August 23, 2010: Text of HP offer to buy 3Par

August 23, 2010: 3Par shares surge on HP’s $1.6B offer

August 23, 2010: HP’s $1.6B offer for 3Par tops Dell

August 16, 2010: Dell to buy 3Par for $1.15B

Top 10 Deals With the Largest Spreads:

SymbolAcquiring CompanyClosing PriceLast PriceClosing DateProfitAnnu. Profit
TLCRGrifols (GRF.MC)$26.59$22.2212/31/201019.64%58.30%
SSENaugatuck Valley Financial Corp (NVSL)$7.25$6.0909/30/201019.05%224.27%
EMMSJS Acquisition and Alden Global Capital (N/A)$2.40$2.020609/30/201018.78%221.08%
NALFirst Niagara Financial Group (FNFG)$14.09$12.7905/15/201110.16%14.38%
ALYSeaDrill (N/A)$4.25$3.8712/31/20109.82%29.14%
AYEFirstEnergy (FE)$24.45$22.5603/31/20118.39%14.37%
ATBCJacksonville Bancorp (JAXB)$2.32$2.1509/30/20107.91%93.10%
QCentury Link (CTL)$6.01$5.6404/21/20116.57%10.24%
NRGPInergy (NRGY)$29.59$28.1612/31/20105.08%15.08%
BGHBuckeye Partners LP (BPL)$44.17$42.1012/31/20104.91%14.58%


List of All Pending Deals:

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

Profit

+TLCR06/07/2010Grifols (GRF.MC)$3.4 billion$26.59$22.2212/31/2010 19.66% 58.34%
+SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$19.5 million$7.25$6.0909/30/2010 19.05% 224.27%
+EMMS05/25/2010JS Acquisition and Alden Global Capital (N/A)$3 billion$2.40$2.020609/30/2010 18.78% 221.08%
+NAL08/19/2010First Niagara Financial Group (FNFG)$1.5 billion$14.09$12.7905/15/2011 10.16% 14.38%
+ALY08/12/2010SeaDrill (N/A)$890 million$4.25$3.8712/31/2010 9.82% 29.14%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$24.45$22.5603/31/2011 8.39% 14.37%
+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.32$2.1509/30/2010 7.91% 93.10%
+Q04/22/2010Century Link (CTL)$10.6 billion$6.01$5.6404/21/2011 6.57% 10.24%
+NRGP08/09/2010Inergy (NRGY)$2.07 billion$29.59$28.1612/31/2010 5.08% 15.08%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$44.17$42.1012/31/2010 4.91% 14.58%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$37.98$36.5212/31/2010 4.00% 11.88%
+VETS06/02/2010VCA Antech Inc (WOOF)$41.25 million$0.34$0.327209/30/2010 3.91% 46.06%
+ATAC07/19/2010Genco Distribution System Inc. (N/A)$513 million$25.00$24.1512/31/2010 3.52% 10.44%
+PINN02/24/2010Investor Group lead by Scotia Waterous (USA) (N/A)$11 million$0.34$0.3308/21/2010 3.03% 0.00%
+PTV08/17/2010Reynolds Group Holdings (N/A)$6 billion$33.25$32.3012/31/2010 2.94% 8.73%
+BNE02/24/2010RR Donnelley (RRD)$481 million$11.50$11.1809/30/2010 2.86% 33.70%
+BXC07/22/2010Cerberus Capital Management (N/A)$111.1 million$3.40$3.3112/31/2010 2.72% 8.07%
+ALOY06/24/2010ZelnickMedia (N/A)$126.5 million$9.80$9.5712/31/2010 2.40% 7.13%
+SMTB07/15/2010People's United Financial Inc. (PBCT)$60 million$3.83$3.7412/31/2010 2.38% 7.06%
+DIVX06/02/2010Sonic Solutions (SNIC)$323 million$7.85$7.6909/30/2010 2.04% 23.97%
+PMACA06/10/2010Old Republic International (ORI)$228 million$7.02$6.8809/30/2010 2.01% 23.62%
+MFE08/19/2010Intel Corporation (INTC)$7.68 billion$48.00$47.1012/31/2010 1.91% 5.67%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$3.7812/31/2010 1.85% 5.50%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$3.7812/31/2010 1.85% 5.50%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.71$11.5008/31/2010 1.83% 666.52%
+TSFG05/17/2010TD Bank Financial Group (N/A)$61 million$0.28$0.275209/30/2010 1.74% 20.54%
+OSTE08/17/2010Medtronic (MDT)$123 million$6.50$6.39512/31/2069 1.64% 0.03%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$18.7112/31/2010 1.55% 4.60%
+XJT08/04/2010SkyWest (SKYW)$133 million$6.75$6.6512/31/2010 1.50% 4.46%
+OMNI06/04/2010Wellspring Capital Management (N/A)$122 million$2.75$2.7111/15/2010 1.48% 7.00%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$33.2912/31/2010 1.38% 4.10%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$9.84$9.7112/31/2010 1.31% 3.90%
+NTY07/15/2010The Carlyle Group (N/A)$3.8 billion$55.00$54.3812/31/2010 1.14% 3.38%
+ACF07/22/2010General Motors Co. (N/A)$3.5 billion$24.50$24.2512/31/2010 1.03% 3.06%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.5112/31/2010 0.94% 2.79%
+GLG05/17/2010Man Group (N/A)$1.6 billion$4.50$4.4609/30/2010 0.90% 10.56%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.6012/31/2010 0.90% 2.66%
+ME04/15/2010Apache (APA)$2.7 billion$23.13$22.9509/30/2010 0.80% 9.42%
+AEZ07/28/2010Hess Corp (HES)$450 million$7.07$7.0112/31/2010 0.79% 2.35%
+HEW07/12/2010Aon Corp (AON)$4.9 billion$49.26$48.9111/15/2010 0.71% 3.37%
+WEL04/09/2010Halliburton Company (HAL)$240 million$3.00$2.9809/30/2010 0.67% 7.90%
+ACAP07/08/2010The Doctors Company (N/A)$386 million$41.50$41.2612/31/2010 0.58% 1.73%
+LSBX07/15/2010People's United Financial Inc. (PBCT)$96 million$21.00$20.9012/31/2010 0.48% 1.42%
+BSMD05/13/2010Merit Medical Systems (MMSI)$96 million$4.38$4.3609/30/2010 0.46% 5.40%
+SWWC03/03/2010Institutional Investors (N/A)$275 million$11.00$10.9703/31/2011 0.27% 0.47%
+HGRD07/28/2010an affiliate of the private equity firm Vestar Capital (N/A)$294 million$8.20$8.1809/30/2010 0.24% 2.88%
+PPCO08/09/2010Endo Pharmaceuticals (ENDP)$144 million$5.00$4.9912/31/2010 0.20% 0.59%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.72512/31/2010 0.20% 0.58%
+WMZ05/24/2010Williams Partners L.P. (WPZ)$32.36$32.3009/30/2010 0.19% 2.22%
+RUBO05/10/2010Mill Road Capital (N/A)$91 million$8.70$8.6908/23/2010 0.12% 0.00%
+GNA06/02/2010Gerdau (GGB)$1.7 billion$11.00$10.9908/31/2010 0.09% 33.21%
+SWSI08/09/2010Nabors Industries (NBR)$900 million$22.12$22.1109/30/2010 0.05% 0.53%
+DTPI08/24/2010PricewaterhouseCoopers (N/A)$378 million$12.50$12.5012/31/2010 0.00% 0.00%
+VIRL06/10/2010Synopsys (SNPS)$315 million$12.00$12.0012/31/2010 0.00% 0.00%
+MEND07/12/2010Johnson & Johnson (JNJ)$480 million$23.40$23.4109/30/2010 -0.04% -0.50%
+UNCA08/13/2010IBM (IBM)$480 million$21.00$21.0212/31/2010 -0.10% -0.28%
+VRX06/21/2010Biovail Corporation (BVF)$3.3 billion$58.07$58.3312/31/2010 -0.45% -1.33%
+ICXT08/16/2010FLIR Systems (FLIR)$274 million$7.55$7.6412/31/2010 -1.18% -3.50%
+CAL05/03/2010United (UAUA)$1.2 billion$21.47$21.8012/31/2010 -1.50% -4.46%
+PZZ08/16/2010Leonard Green & Partners (N/A)$363 million$8.50$8.6312/31/2010 -1.51% -4.47%
+ABII06/30/2010Celgene (CELG)$2.9 billion$71.57$74.2012/31/2010 -3.55% -10.53%
+TRBN08/12/2010Emergent BioSolution (EBS)$96.8 million$4.22$4.4512/31/2010 -5.09% -15.10%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$4.8112/31/2010 -6.44% -19.13%
+CPII05/10/2010Comtech (CMTL)$472.3 million$13.69$14.7209/30/2010 -6.97% -82.02%
+PAR08/28/2010Hewlett-Packard Company (HPQ)$2 billion$30.00$32.4612/31/2010 -7.58% -22.49%
+MCCC06/01/2010Chief Executive Rocco Commisso (N/A)$590 million$6.00$7.20N/A -16.67% 0.00%
+DTG04/26/2010Hertz (HTZ)$1.3 billion$38.43$48.0512/31/2010 -20.03% -59.43%
+CCE02/25/2010The Coca-Cola Company (KO)$12.3 billionN/A$28.6710/01/2010 N/A N/A