Merger Arbitrage Mondays – September 27, 2010

  • September 26, 2010

Merger activity continued to increase last week with eight new deals announced and one deal closing.

Deal Statistics:

Total Number of Deals Closed in 201070
Total Number of Deals That Did Not Complete in 20105
Total Number of Pending Deals
Cash Deals53
Stock Deals12
Stock & Cash Deals13
Total Number of Pending Deals78

New Deals:

  1. The acquisition of L-1 Identity Solutions (ID) by French aerospace and defense systems company Safran for $1.1 billion at $12 per share in cash
  2. The acquisition of Netezza Corp (NZ) by International Business Machines Corp (IBM) for $1.7 billion at $27 per share in cash
  3. The acquisition of Nu Horizons Electronics Corp (NUHC) by Arrow Electronics (ARW) for $130 million at $7 per share in cash
  4. The acquisition of Internet Brands (INET) by an affiliate of Hellman & Friedman Capital Partners for $640 million at $13.35 per share in cash
  5. The acquisition of RAE Systems (RAE) by an affiliate of Battery Ventures for $95 million at $1.60 per share in cash
  6. The acquisition of Cadence Financial Corporation (CADE) by Trustmark Corporation (TRMK) in an all-stock deal at  0.097 shares of Trustmark common stock for each share of Cadence
  7. The acquisition of Penn Virginia GP Holdings (PVG) by Penn Virginia Resource Partners (PVR) for $954 million in an all stock deal, where Penn Virginia GP Holdings unitholders will receive 0.98 units of Penn Virginia Resource Partners per Penn Virginia GP Holdings unit held
  8. The acquisition of Majestic Capital (MAJC) by Bayside Capital Partners for $7.8 million at $0.45 per share in cash


Modified Deals:

  1. BlueLinx Holdings (BXC) rose 15% to $3.92 a share in pre-market trades on Thursday after receiving an increased buyout offer of $4 a share from affiliates of Cerberus Capital Management L.P., up from an earlier offer of $3.40 a share.
  2. Avis Budget Group (CAR) increased its offer to acquire Dollar Thrifty (DTG) to about $1.52 billion, topping a sweetened offer from Hertz (HTZ) earlier this month.


Closed Deals:

  1. The acquisition of Boots & Coots (WEL) by Halliburton (HAL) on September 20, 2010


Top 10 Deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
TLCR06/07/2010Grifols (GRF.MC)$28.37$23.1012/31/2010 22.81% 87.62%
MAJC09/21/2010Bayside Capital Partners (N/A)$0.45$0.37503/31/2011 20.00% 39.46%
SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$6.75$5.7812/31/2010 16.78% 64.48%
ADAM08/30/2010Ebix Inc. (EBIX)$7.18$6.3312/31/2010 13.44% 51.63%
AYE02/11/2010FirstEnergy (FE)$25.41$24.0403/31/2011 5.71% 11.27%
CADE09/22/2010Trustmark Corporation (TRMK)$2.11$2.0003/31/2011 5.34% 10.54%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$23.96$22.7512/31/2010 5.32% 20.45%
BNE02/24/2010RR Donnelley (RRD)$11.50$10.9809/30/2010 4.74% 576.20%
Q04/22/2010Century Link (CTL)$6.53$6.2504/21/2011 4.50% 7.97%
BGH06/11/2010Buckeye Partners LP (BPL)$43.72$41.9512/31/2010 4.23% 16.25%

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$28.36$23.1012/31/2010 22.78% 87.51%
+MAJC09/21/2010Bayside Capital Partners (N/A)$7.8 million$0.45$0.37503/31/2011 20.00% 39.46%
+SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$19.5 million$6.75$5.7812/31/2010 16.78% 64.48%
+ADAM08/30/2010Ebix Inc. (EBIX)$66 million$7.18$6.3312/31/2010 13.44% 51.63%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$25.41$24.0403/31/2011 5.71% 11.27%
+CADE09/22/2010Trustmark Corporation (TRMK)$23.8 million$2.11$2.0003/31/2011 5.34% 10.54%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)$954 million$23.96$22.7512/31/2010 5.32% 20.45%
+BNE02/24/2010RR Donnelley (RRD)$481 million$11.50$10.9809/30/2010 4.74% 576.20%
+Q04/22/2010Century Link (CTL)$10.6 billion$6.53$6.2504/21/2011 4.50% 7.97%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$43.72$41.9512/31/2010 4.23% 16.25%
+SMTB07/15/2010People's United Financial Inc. (PBCT)$60 million$3.88$3.7412/31/2010 3.80% 14.61%
+OCNW09/16/2010Calix Inc. (CALX)$171 million$7.64$7.3912/31/2010 3.45% 13.26%
+NRGP08/09/2010Inergy (NRGY)$2.07 billion$29.57$28.7312/31/2010 2.92% 11.21%
+ALY08/12/2010Seawell (N/A)$890 million$4.25$4.1312/31/2010 2.91% 11.16%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$39.64$38.5712/31/2010 2.77% 10.65%
+ID09/20/2010Safran (N/A)$1.1 billion$12.00$11.6903/31/2011 2.65% 5.23%
+RAE09/20/2010Battery Ventures (N/A)$95 million$1.60$1.5612/31/2010 2.56% 9.85%
+EPE09/07/2010Enterprise Products (EPD)$8 billion$58.17$56.7912/31/2010 2.43% 9.34%
+OTIX09/13/2010William Demant (N/A)$50 million$8.60$8.43212/31/2010 1.99% 7.66%
+DIVX06/02/2010Sonic Solutions (SNIC)$323 million$8.22$8.0809/30/2010 1.75% 213.52%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.80$11.6012/30/2010 1.72% 6.69%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$10.06$9.9012/31/2010 1.66% 6.37%
+OICO09/14/2010ITT Corporation (ITT)$29 million$12.50$12.3012/31/2010 1.63% 6.25%
+ALOY06/24/2010ZelnickMedia (N/A)$126.5 million$9.80$9.6512/31/2010 1.55% 5.97%
+NAL08/19/2010First Niagara Financial Group (FNFG)$1.5 billion$12.67$12.4805/15/2011 1.54% 2.44%
+INET09/20/2010an affiliate of Hellman & Friedman Capital Partners (N/A)$640 million$13.35$13.1612/31/2010 1.44% 5.55%
+MFE08/19/2010Intel Corporation (INTC)$7.68 billion$48.00$47.3212/31/2010 1.44% 5.52%
+ME04/15/2010Apache (APA)$2.7 billion$24.52$24.1909/30/2010 1.38% 168.14%
+ATAC07/19/2010Genco Distribution System Inc. (N/A)$513 million$25.00$24.7212/31/2010 1.13% 4.35%
+OMNI06/04/2010Wellspring Capital Management (N/A)$122 million$2.75$2.7211/15/2010 1.10% 8.22%
+XJT08/04/2010SkyWest (SKYW)$133 million$6.75$6.6812/31/2010 1.05% 4.03%
+TUNE09/08/2010Zoran Corporation (ZRAN)$84 million$2.92$2.8912/31/2010 1.04% 3.99%
+NUHC09/20/2010Arrow Electronics (ARW)$130 million$7.00$6.9312/31/2010 1.01% 3.88%
+PTV08/17/2010Reynolds Group Holdings (N/A)$6 billion$33.25$32.9312/31/2010 0.97% 3.73%
+LSBX07/15/2010People's United Financial Inc. (PBCT)$96 million$21.00$20.8012/31/2010 0.96% 3.69%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$18.82112/31/2010 0.95% 3.65%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.59512/31/2010 0.91% 3.49%
+BKC09/02/20103G Capital (N/A)$3.26 billion$24.00$23.8112/31/2010 0.80% 3.07%
+OSTE08/17/2010Medtronic (MDT)$123 million$6.50$6.4512/31/2010 0.78% 2.98%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$33.5012/31/2010 0.75% 2.87%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.6612/31/2010 0.71% 2.73%
+CLU09/16/2010Clearwater Paper Corporation (CLW)$247 million$12.00$11.9312/31/2010 0.59% 2.25%
+ACF07/22/2010General Motors Co. (N/A)$3.5 billion$24.50$24.3712/31/2010 0.53% 2.05%
+AMPH09/01/2010ProAssuarance (PRA)$233 million$32.50$32.3512/31/2010 0.46% 1.78%
+PPCO08/09/2010Endo Pharmaceuticals (ENDP)$144 million$5.00$4.9812/31/2010 0.40% 1.54%
+STU09/17/2010Discover Financial Services (N/A)N/A$30.00$29.8912/31/2010 0.37% 1.41%
+RSCR09/07/2010Onex Corp (N/A)$390 million$13.25$13.2112/31/2010 0.30% 1.16%
+DTPI08/24/2010PricewaterhouseCoopers (N/A)$378 million$12.50$12.4712/31/2010 0.24% 0.92%
+GLG05/17/2010Man Group (N/A)$1.6 billion$4.50$4.4909/30/2010 0.22% 27.10%
+PMACA06/10/2010Old Republic International (ORI)$228 million$7.50$7.4809/30/2010 0.22% 26.84%
+ARST09/13/2010Hewlett-Packard Company (HPQ)$1.5 billion$43.50$43.4112/31/2010 0.21% 0.80%
+ZGEN09/07/2010Bristol Myers Squibb Company (BMY)$885 million$9.75$9.7312/31/2010 0.21% 0.79%
+HEW07/12/2010Aon Corp (AON)$4.9 billion$50.71$50.6211/15/2010 0.17% 1.30%
+NTY07/15/2010The Carlyle Group (N/A)$3.8 billion$55.00$54.9412/31/2010 0.11% 0.42%
+AEZ07/28/2010Hess Corp (HES)$450 million$7.94$7.9312/31/2010 0.09% 0.35%
+MEND07/12/2010Johnson & Johnson (JNJ)$480 million$23.40$23.3809/30/2010 0.09% 10.41%
+ACAP07/08/2010The Doctors Company (N/A)$386 million$41.50$41.5012/31/2010 0.00% 0.00%
+HGRD07/28/2010an affiliate of the private equity firm Vestar Capital (N/A)$294 million$8.20$8.2009/30/2010 0.00% 0.00%
+SLRY09/01/2010Kenexa Corp. (KNXA)$80 million$4.07$4.0712/31/2010 0.00% 0.00%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.7812/31/2010 -0.12% -0.45%
+CAL05/03/2010United (UAUA)$1.2 billion$23.93$23.9612/31/2010 -0.13% -0.49%
+VRX06/21/2010Biovail Corporation (BVF)$3.3 billion$65.05$65.1612/31/2010 -0.17% -0.65%
+UNCA08/13/2010IBM (IBM)$480 million$21.00$21.0412/31/2010 -0.19% -0.73%
+DTG04/26/2010Hertz (HTZ)$1.56 billion$50.70$51.0312/31/2010 -0.64% -2.45%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$4.5312/31/2010 -0.66% -2.54%
+ICXT08/16/2010FLIR Systems (FLIR)$274 million$7.55$7.6112/31/2010 -0.79% -3.03%
+NZ09/20/2010International Business Machines (IBM)$1.7 billion$27.00$27.4612/31/2010 -1.68% -6.44%
+PZZ08/16/2010Leonard Green & Partners (N/A)$363 million$8.50$8.6712/31/2010 -1.96% -7.53%
+COGT08/30/20103M Co. (MMM)$943 million$10.50$10.7412/31/2010 -2.23% -8.59%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$3.9512/31/2010 -2.53% -9.73%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$3.9512/31/2010 -2.53% -9.73%
+TSFG05/17/2010TD Bank Financial Group (N/A)$61 million$0.28$0.2909/30/2010 -3.45% -419.54%
+ABII06/30/2010Celgene (CELG)$2.9 billion$73.30$76.6812/31/2010 -4.41% -16.94%
+TRBN08/12/2010Emergent BioSolution (EBS)$96.8 million$4.37$4.568512/31/2010 -4.42% -17.00%
+PAR08/28/2010Hewlett-Packard Company (HPQ)$2 billion$30.00$32.9812/31/2010 -9.04% -34.72%
+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.18$2.4412/31/2010 -10.82% -41.57%
+BXC07/22/2010Cerberus Capital Management (N/A)$111.1 million$3.40$3.9712/31/2010 -14.36% -55.16%
+CCE02/25/2010The Coca-Cola Company (KO)$12.3 billionN/A$30.2010/01/2010 N/A N/A

Contributing Author: Ann Kumar