Merger Arbitrage Mondays – September 13, 2010
Merger activity remained steady last week with four new deals announced and no deals closing.
Deal Statistics:
New Deals:
- The acquisition of Enterprise G.P. Holdings (EPE) by Enterprise products (EPD) for $8 billion. Under the deal, Enterprise GP unit holders would receive 1.5 Enterprise Products common units in exchange for each Enterprise GP unit.
- The acquisition of ResCare Inc (RSCR) by Canadian private equity firm Onex Corp for $390 million at $13.25 per share in cash.
- The acquisition of ZymoGenetics Inc. (ZGEN) by Bristol – Myers Squibb Co. for $885 million at $9.75 per share in cash. This deal represented a 84% premium to ZGEN’s closing price of $5.30 on the day of the announcement. The premium is even higher when you use the trading range of the last three months when the stock oscillated between $3.84 and $5.51. Time to buy a biotech ETF as a play on Big Pharma’s insatiable appetite for an acquired pipeline?
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