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Merger Arbitrage Mondays – October 11, 2010

  • October 10, 2010

Merger Activity remained steady this week with six new deals announced and four deals closing.

Deal Statistics:

Total Number of Deals Closed in 201085
Total Number of Deals That Did Not Complete in 20105
Total Number of Pending Deals
Cash Deals52
Stock Deals12
Stock & Cash Deals13
Total Number of Pending Deals77


New Deals:

  1. The acquisition of Actel Corporation (ACTL) by Microsemi Corporation (MSCC) for $430 million or $20.88 per share in cash.
  2. The acquisition of Thermadyne Holdings (THMD) by Irving Place Capital for $422 million or $15.00 per share in cash.
  3. The acquisition of T-3 Energy Services (TTES) by Robbins & Myers (RBN) for $422 million in a cash plus stock deal where T-3 shareholders will receive 0.894 common shares of Robbins & Myers plus $7.95 in cash.
  4. The acquisition of Henry Bros. Electronics (HBE) by Kratos Defense and Security Solutions (KTOS) for $45 million or $7.00 per share in cash.
  5. The acquisition of Monroe Bancorp (MROE) by Old National Bancorp (ONB) for $83.5 million in an all-stock deal, where Monroe shareholders will get 1.275 shares of Old National for every share held. The price worked out to $13.35 at the time of announcement and was a 148% premium to the closing price of Monroe Bancorp on Tuesday.
  6. The acquisition of Crucell NV (CRXL) by Johnson & Johnson (JNJ) for $2.41 billion or $34.40 per share in cash.  


Modified Deals:

  1. On October 06, 2010, after terminating its previously announced agreement with Trustmark Corporation, Cadence Financial Corporation (CADE) agreed to be acquired by Community Bancorp LLC for $38 million or $2.50 per share in cash.


Closed Deals:

  1. The acquisition of ICx Technologies (ICXT) by FLIR Systems (FLIR) on October 04, 2010.
  2. The acquisition of Unica Corporation (UNCA) by International Business Machines (IBM) on October 06, 2010.
  3. The acquisition of Health Grades Inc (HGRD) by Vestar Capital Partners on October 07, 2010.
  4. The acquisition of DivX (DIVX) by Sonic Solutions (SNIC) on October 08, 2010. This was one of three deals I had highlighted as personally interesting to me and I wanted to get into but had to pass on because I could not find shares of Sonic Solutions to short. The other two were Coca-Cola Enterprises (CCE) which completed last week and Portec Rail Products (PRPX).


Top 10 Deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
TLCR06/07/2010Grifols (GRF.MC)$28.53$23.3712/31/2010 22.10% 99.59%
MROE10/06/2010Old National Bancorp (ONB)$12.57$10.999903/31/2011 14.29% 30.50%
MAJC09/21/2010Bayside Capital Partners (N/A)$0.45$0.39503/31/2011 13.92% 29.72%
SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$6.75$6.0312/31/2010 11.94% 53.81%
ADAM08/30/2010Ebix Inc. (EBIX)$7.12$6.4512/31/2010 10.41% 46.90%
DTG04/26/2010Avis (CAR)$53.12$48.2912/31/2010 10.00% 45.05%
AAI09/27/2010Southwest Airlines (LUV)$7.94$7.3603/31/2011 7.82% 16.70%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$25.11$23.7412/31/2010 5.76% 25.96%
AYE02/11/2010FirstEnergy (FE)$25.66$24.4003/31/2011 5.16% 11.02%
Q04/22/2010Century Link (CTL)$6.62$6.3404/21/2011 4.35% 8.28%

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$28.53$23.3712/31/2010 22.09% 99.55%
+MROE10/06/2010Old National Bancorp (ONB)$83.5 million$12.57$10.999903/31/2011 14.29% 30.50%
+MAJC09/21/2010Bayside Capital Partners (N/A)$7.8 million$0.45$0.39503/31/2011 13.92% 29.72%
+SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$19.5 million$6.75$6.0312/31/2010 11.94% 53.81%
+ADAM08/30/2010Ebix Inc. (EBIX)$66 million$7.12$6.4512/31/2010 10.41% 46.90%
+DTG04/26/2010Avis (CAR)$1.56 billion$53.12$48.2912/31/2010 10.00% 45.05%
+AAI09/27/2010Southwest Airlines (LUV)$1.4 billion$7.94$7.3603/31/2011 7.82% 16.70%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)$954 million$25.11$23.7412/31/2010 5.76% 25.96%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$25.66$24.4003/31/2011 5.16% 11.02%
+Q04/22/2010Century Link (CTL)$10.6 billion$6.62$6.3404/21/2011 4.35% 8.28%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$45.80$44.0012/31/2010 4.10% 18.47%
+NCOC09/28/2010Ranger Energy Investments (N/A)$8.6 million$1.00$0.965812/15/2010 3.54% 19.88%
+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.31$2.2512/31/2010 2.58% 11.62%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.80$11.5612/30/2010 2.08% 9.47%
+NHWK09/27/2010Virtual Radiologic (N/A)$170 million$6.50$6.3703/31/2011 2.04% 4.36%
+NAL08/19/2010First Niagara Financial Group (FNFG)$1.5 billion$12.94$12.6805/15/2011 2.02% 3.41%
+BNE02/23/2010RR Donnelley (RRD)$481 million$11.50$11.2809/30/2010 1.95% 0.00%
+RAE09/20/2010Battery Ventures (N/A)$95 million$1.60$1.5712/31/2010 1.91% 8.61%
+ID09/20/2010Safran (N/A)$1.1 billion$12.00$11.7803/31/2011 1.87% 3.99%
+MFE08/19/2010Intel Corporation (INTC)$7.68 billion$48.00$47.1512/31/2010 1.80% 8.12%
+SMTB07/15/2010People's United Financial Inc. (PBCT)$60 million$3.90$3.8412/31/2010 1.69% 7.60%
+HBE10/06/2010Kratos Defense & Security Solutions (KTOS)$45 million$7.00$6.8912/31/2010 1.60% 7.19%
+OCNW09/16/2010Calix Inc. (CALX)$171 million$7.62$7.5112/31/2010 1.52% 6.87%
+OICO09/14/2010ITT Corporation (ITT)$29 million$12.50$12.31512/31/2010 1.50% 6.77%
+TTES10/06/2010Robbins & Myers Inc. (RBN)$422 million$32.70$32.2412/31/2010 1.41% 6.37%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$40.99$40.5012/31/2010 1.20% 5.42%
+EPE09/07/2010Enterprise Products (EPD)$8 billion$61.44$60.7312/31/2010 1.17% 5.27%
+XJT08/04/2010SkyWest (SKYW)$133 million$6.75$6.6812/31/2010 1.05% 4.72%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$10.69$10.5812/31/2010 1.02% 4.60%
+NRGP08/09/2010Inergy (NRGY)$2.07 billion$31.39$31.0712/31/2010 1.01% 4.57%
+DDMX10/01/2010Greenbriar Equity Group (N/A)$210 million$21.25$21.0702/15/2011 0.85% 2.46%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$18.8412/31/2010 0.85% 3.83%
+CLU09/16/2010Clearwater Paper Corporation (CLW)$247 million$12.00$11.9012/31/2010 0.84% 3.79%
+INET09/20/2010an affiliate of Hellman & Friedman Capital Partners (N/A)$640 million$13.35$13.2412/31/2010 0.83% 3.74%
+OMNI06/04/2010Wellspring Capital Management (N/A)$122 million$2.75$2.7311/15/2010 0.73% 7.64%
+ALOY06/24/2010ZelnickMedia (N/A)$126.5 million$9.80$9.7312/31/2010 0.72% 3.24%
+NUHC09/20/2010Arrow Electronics (ARW)$130 million$7.00$6.9512/31/2010 0.72% 3.24%
+ME04/15/2010Apache (APA)$2.7 billion$25.10$24.9312/31/2010 0.70% 3.14%
+TUNE09/08/2010Zoran Corporation (ZRAN)$84 million$2.92$2.9012/31/2010 0.69% 3.11%
+PTV08/17/2010Reynolds Group Holdings (N/A)$6 billion$33.25$33.0412/31/2010 0.64% 2.86%
+OSTE08/17/2010Medtronic (MDT)$123 million$6.50$6.4612/31/2010 0.62% 2.79%
+PZZ08/16/2010Leonard Green & Partners (N/A)$363 million$8.50$8.4512/31/2010 0.59% 2.67%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.6812/31/2010 0.55% 2.49%
+CRXL10/06/2010Johnson & Johnson (JNJ)$2.41 billion$34.40$34.2303/31/2011 0.50% 1.06%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.8012/31/2010 0.45% 2.01%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$33.6012/31/2010 0.45% 2.01%
+ATAC07/19/2010Genco Distribution System Inc. (N/A)$513 million$25.00$24.9012/31/2010 0.40% 1.81%
+PPCO08/09/2010Endo Pharmaceuticals (ENDP)$144 million$5.00$4.9812/31/2010 0.40% 1.81%
+AMPH09/01/2010ProAssuarance (PRA)$233 million$32.50$32.4012/31/2010 0.31% 1.39%
+LSBX07/15/2010People's United Financial Inc. (PBCT)$96 million$21.00$20.9412/31/2010 0.29% 1.29%
+BKC09/02/20103G Capital (N/A)$3.26 billion$24.00$23.9412/31/2010 0.25% 1.13%
+ZGEN09/07/2010Bristol Myers Squibb Company (BMY)$885 million$9.75$9.7312/31/2010 0.21% 0.93%
+KEI09/28/2010Danaher Corporation (DHR)$340 million$21.60$21.5612/31/2010 0.19% 0.84%
+AEZ07/28/2010Hess Corp (HES)$450 million$8.59$8.5712/31/2010 0.18% 0.81%
+NZ09/20/2010International Business Machines (IBM)$1.7 billion$27.00$26.9612/31/2010 0.15% 0.67%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.7212/31/2010 0.12% 0.53%
+ARST09/13/2010Hewlett-Packard Company (HPQ)$1.5 billion$43.50$43.4512/31/2010 0.12% 0.52%
+COGT08/30/20103M Co. (MMM)$943 million$10.50$10.4912/31/2010 0.10% 0.43%
+ACAP07/08/2010The Doctors Company (N/A)$386 million$41.50$41.4712/31/2010 0.07% 0.33%
+GLG05/17/2010Man Group (N/A)$1.6 billion$4.50$4.5010/15/2010 0.00% 0.00%
+DTPI08/24/2010PricewaterhouseCoopers (N/A)$378 million$12.50$12.5112/31/2010 -0.08% -0.36%
+THMD10/05/2010Irving Place Capital (N/A)$422 million$15.00$15.0312/31/2010 -0.20% -0.90%
+STU09/17/2010Discover Financial Services (N/A)N/A$30.00$30.1012/31/2010 -0.33% -1.50%
+ACV09/27/2010Unilever PLC (N/A)$3.7 billion$37.50$37.6712/31/2010 -0.45% -2.03%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$3.8712/31/2010 -0.52% -2.33%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$3.8712/31/2010 -0.52% -2.33%
+ACTL10/04/2010Microsemi (MSCC)$430 million$20.88$21.0101/02/2011 -0.62% -2.72%
+RSCR09/07/2010Onex Corp (N/A)$390 million$13.25$13.6112/31/2010 -2.65% -11.92%
+CGC10/01/2010Gammon Gold (GRS)$288 million$4.49$4.6512/31/2010 -3.48% -15.66%
+ALY08/12/2010Seawell (N/A)$890 million$4.25$4.4412/31/2010 -4.28% -19.28%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$4.7112/31/2010 -4.46% -20.09%
+ABII06/30/2010Celgene (CELG)$2.9 billion$73.13$77.0912/31/2010 -5.13% -23.12%
+TRBN08/12/2010Emergent BioSolution (EBS)$96.8 million$4.33$4.5912/31/2010 -5.69% -25.66%
+DVD09/27/2010)–Dover Downs Gaming & Entertainment Inc (DDE)N/A$1.71$1.8812/31/2010 -9.13% -41.13%
+CADE10/06/2010Community Bancorp LLC (N/A)$38 million$2.25$2.479903/31/2011 -9.41% -20.09%
+BXC07/22/2010Cerberus Capital Management (N/A)$111.1 million$3.40$4.0012/31/2010 -15.00% -67.59%
+OTIX09/13/2010William Demant (N/A)$50 million$8.60$10.5012/31/2010 -18.10% -81.54%

Contributing Author: Ann Kumar