Merger Arbitrage Mondays

Merger Arbitrage Mondays – October 18, 2010

October 17, 2010

Activity on the merger front continued to remain steady with seven new deals announced and two closing.

Deal Statistics:

Total Number of Deals Closed in 2010	87
Total Number of Deals That Did Not Complete in 2010	5
Total Number of Pending Deals
Cash Deals	55
Stock Deals	13
Stock & Cash Deals	13
Total Number of Pending Deals	81

New Deals:

The acquisition of Gymboree (GYMB) by Bain Capital Partners for $1.8 billion or $65.40 per share in cash. I still recollect writing about Gymboree back in June 2007 and picking the stock up a couple of weeks later for $42.02. Unfortunately I sold the stock about a year later in anticipation of a retail slowdown.
The acquisition of King Pharmaceuticals (KG) by Pfizer (PFE) for $3.6 billion or $14.25 per share in cash.
The acquisition of ActivIdentity (ACTI) by Assa Abloy AB for $162 million or $3.25 per share in cash.
The acquisition of First Franklin Corporation (FFHS) by Cheviot Financial Corp, (CHEV) for $14.50 per share in cash.
The acquisition of Ulticom (ULCM) by affiliates of Platinum Equity for $8.07 per share, including a $5.74 a share cash dividend before the deal closes, plus $2.33 from Platinum with a portion of such amount to be deferred and at risk based on the Company’s financial performance post-closing.
The acquisition of Hawk Corporation (HWK) by Carlisle (CSL) for $413 million or $50 per share in cash.
The acquisition of Rome Bancorp (ROME) by Berkshire Hills Bancorp (BHLB) for $74 million. Under the terms of the merger agreement, 70% of the outstanding Rome shares will be exchanged for Berkshire shares at a fixed exchange ratio of 0.5658 Berkshire shares for each share of Rome. The remaining 30% of Rome shares will be exchanged for cash in the amount of $11.25 per share.

Closed Deals:

The acquisition of ZymoGenetics (ZGEN) by Bristol-Myers Squibb (BMY) on October 13, 2010.
The acquisition of GLG Partners (GLG) by Man Group on October 14, 2010.

Top 10 Deals with largest spreads:

Symbol	Announced Date	Acquiring Company	Closing Price	Last Price	Closing Date	Profit	Annu. Profit
TLCR	06/07/2010	Grifols (GRF.MC)	$29.19	$23.98	12/31/2010	21.73%	107.18%
MAJC	09/21/2010	Bayside Capital Partners (N/A)	$0.45	$0.3906	03/31/2011	15.21%	33.85%
MROE	10/06/2010	Old National Bancorp (ONB)	$12.76	$11.2501	03/31/2011	13.45%	29.92%
DTG	04/26/2010	Avis (CAR)	$53.02	$48.06	12/31/2010	10.32%	50.90%
SSE	02/23/2010	Naugatuck Valley Financial Corp (NVSL)	$6.75	$6.13	12/31/2010	10.11%	49.89%
ADAM	08/30/2010	Ebix Inc. (EBIX)	$7.34	$6.79	12/31/2010	8.14%	40.17%
AAI	09/27/2010	Southwest Airlines (LUV)	$7.91	$7.39	03/31/2011	7.00%	15.57%
PVG	09/21/2010	Penn Virginia Resource Partners (PVR)	$25.36	$24.04	12/31/2010	5.50%	27.13%
AYE	02/11/2010	FirstEnergy (FE)	$25.97	$24.62	03/31/2011	5.47%	12.17%
Q	04/22/2010	Century Link (CTL)	$6.64	$6.34	04/21/2011	4.67%	9.21%

List of all Pending Deals:

	Symbol	Announced Date	Acquiring Company	Closing Value	Closing Price	Last Price	Closing Date	Profit	Annu. Profit
+	TLCR	06/07/2010	Grifols (GRF.MC)	$3.4 billion	$29.20	$23.98	12/31/2010	21.76%	107.35%
Details of Talecris Expected to close by the end of the year for a closing value of $3.4 billion. On the completion of the merger Grifols will pay $19 in cash and 0.641 newly issued, nonvoting shares for each share of Talecris.
+	MAJC	09/21/2010	Bayside Capital Partners (N/A)	$7.8 million	$0.45	$0.3906	03/31/2011	15.21%	33.85%
Details of Majestic Capital Expected to close in the first quarter of 2011 for a closing value of $7.8 million. On the completion of the merger, Majestic Capital shareholders will receive $0.45 per share in cash.
+	MROE	10/06/2010	Old National Bancorp (ONB)	$83.5 million	$12.76	$11.2501	03/31/2011	13.45%	29.92%
Details of Monroe Bancorp Expected to close by the end of this year or the first quarter of 2011 for a closing value of $83.5 miilion. On the completion of the merger, Monroe Bancorp shareholders Monroe shareholders will receive 1.275 shares of Old National for every share held.
+	DTG	04/26/2010	Avis (CAR)	$1.56 billion	$53.02	$48.06	12/31/2010	10.32%	50.90%
Details of Dollar Thrifty Automotive Group Details about the original Hertz offer with updates below: Expected to close by the end of the year for a value of $1.3 billion. The transaction values Dollar Thrifty stock at approximately $41.00 per share. the $41.00 per share purchase price is comprised of 80% cash consideration and 20% stock consideration. The cash portion will be paid in two components; (1) a $200 million special cash dividend representing approximately $6.88 per share, to be paid by Dollar Thrifty immediately prior to the transaction closing and (2) $25.92 per share to be paid by Hertz at the closing. The stock is at a fixed exchange ratio of 0.6366 per share, based upon a Hertz common stock closing price of $12.88 per share on April 23, 2010. Revision on 09/13/2010: Hertz raised its offer for Dollar Thrifty Automotive Group Inc. to $50 a share, or about $1.56 billion, topping a proposal from Avis Budget Group Inc. Update 10/1/2010: Dollar Thrifty shareholders rejected the Hertz deal yesterday. DTG has indicated its willingness to work with Avis's offer of nearly $53 per share ($45.79 in cash plus 0.6543 shares of Avis) but has asked the company to hold off on making a formal offer.
+	SSE	02/23/2010	Naugatuck Valley Financial Corp (NVSL)	$19.5 million	$6.75	$6.13	12/31/2010	10.11%	49.89%
Details of Southern Connecticut Bancorp In Expected to close by the third calendar quarter of 2010, for a closing value of $19.5mn at $7.25/share. The Cash/stock election is subject to proration. Revision on 09/17/2010: Under the amendment, shareholders will be entitled to receive $6.75 per share in cash and the transaction os expected to close in the fourth quarter of 2010 or in early 2011.
+	ADAM	08/30/2010	Ebix Inc. (EBIX)	$66 million	$7.34	$6.79	12/31/2010	8.14%	40.17%
Details of A.D.A.M Inc. Expected to close later this year for a closing value of $66 million. On the completion of the merger ADAM shareholders will receive 0.3122 of Ebix stock for each share held in ADAM.
+	AAI	09/27/2010	Southwest Airlines (LUV)	$1.4 billion	$7.91	$7.39	03/31/2011	7.00%	15.57%
Details of AirTran Holdings Expected to close in the first quarter of 2011 for a closing value of $1.4 billion. On the completion of the merger, AirTran Holdings Shareholders will receive $3.75 per share in cash and 0.321 share of Southwest stock for each share of AirTran held.
+	PVG	09/21/2010	Penn Virginia Resource Partners (PVR)	$954 million	$25.36	$24.04	12/31/2010	5.50%	27.13%
Details of Penn Virginia GP Holdings Expected to close by the end of the year for a closing value of $954 million. On the completion of the merger, Penn Virginia GP Holdings unitholders will receive 0.98 units of Penn Virginia Resource Partners per Penn Virginia GP Holdings unit held.
+	AYE	02/11/2010	FirstEnergy (FE)	$8.5 billion	$25.97	$24.62	03/31/2011	5.47%	12.17%
Details of Allegheny Energy, Inc. Common S Expected to close by March 31, 2011 for a closing value $8.5bn. It is a stock based transaction @ 0.667 share of FE Revision on September 14, 2010: Jefferies & Companies lowers its price target to $23.50, from $24.50.
+	Q	04/22/2010	Century Link (CTL)	$10.6 billion	$6.64	$6.34	04/21/2011	4.67%	9.21%
Details of Qwest Communications Internatio Expected to close in the first half of 2011for a value of $10.6bn. Under the terms of the agreement, Qwest shareholders will receive 0.1664 CenturyLink shares for each share of Qwest common stock they own at closing.
+	BGH	06/11/2010	Buckeye Partners LP (BPL)	$1.14 billion	$44.85	$43.27	12/31/2010	3.66%	18.03%
Details of Buckeye GP Holdings Expected to close in the fourth quarter of 2010 for a closing value of $1.14 billion. Under the deal, for each Buckeye GP unit, holders will get 0.705 Buckeye Partners units.
+	PRPX	02/17/2010	L.B. Foster Co. (FSTR)	$112 million	$11.80	$11.55	12/30/2010	2.16%	10.82%
Details of Portec Rail Products, Inc. Expected to close by August 31, 2010 for a closing value of $112mn. The cash deal is @ $11.71 per share. Revision on 08/30/2010: L.B. Foster and Portec Rail Products announced on August 30, 2010, that they have extended the merger deadline from August 31, 2010 to December 30, 2010 Revision on 08/31/2010: L.B. Foster has agreed to both increase the tender offer share price from $11.71 per share to $11.80 per share and, subject to certain conditions, pay Portec $2 million should the transaction not close by December 30, 2010.
+	ATBC	05/10/2010	Jacksonville Bancorp (JAXB)	N/A	$2.24	$2.20	12/31/2010	2.00%	9.86%
Details of Atlantic BancGroup Inc Expected to close in the third quarter of 2010. If the merger is completed, Atlantic BancGroup shareholders will receive 0.2 shares of Jacksonville Bancorp common stock for each share of Atlantic BancGroup common stock held, plus up to approximately $0.65 per share in cash, subject to the qualifying sale of certain Atlantic BancGroup assets. Revision on September 20, 2010: Cash part increased from 0.65 to 0.67
+	RAE	09/20/2010	Battery Ventures (N/A)	$95 million	$1.60	$1.57	12/31/2010	1.91%	9.43%
Details of RAE Systems Inc. Expected to close in the fourth quarter of 2010 for a closing value of $95 million. On the completion of the merger, RAE Systems shareholders will receive $1.60 per share in cash.
+	OCNW	09/16/2010	Calix Inc. (CALX)	$171 million	$7.63	$7.50	12/31/2010	1.78%	8.76%
Details of Occam Networks Inc. Expected to complete in the fourth quarter of this year or first quarter of 2011 for $171 million. On the completion of the merger, Occam Networks shareholders will receive approximately $7.75 per share. The deal is a cash plus stock deal with Occam shareholders receiving $3.8337 in cash and 0.2925 shares of Calix.
+	TTES	10/06/2010	Robbins & Myers Inc. (RBN)	$422 million	$33.21	$32.73	12/31/2010	1.48%	7.30%
Details of T-3 Energy Services Expected to close by the end of the year or early next year for a closing value of $422 million. On the completion of the merger, T-3 energy shareholders will receive 0.894 common shares of Robbins & Myers plus $7.95 in cash.
+	EPE	09/07/2010	Enterprise Products (EPD)	$8 billion	$62.58	$61.70	12/31/2010	1.43%	7.03%
Details of Enterprise G.P. Holdings Expected to close by the end of the year for a closing value of $8 billion. On the completion of the merger, Enterprise GP unitholders would receive 1.5 Enterprise Products common units in exchange for each Enterprise GP limited partner unit.
+	MFE	08/19/2010	Intel Corporation (INTC)	$7.68 billion	$48.00	$47.36	12/31/2010	1.35%	6.67%
Details of McAfee Expected to close once McAfee shareholder approval and regulatory clearance is gained for a closing value of $7.68 billion. On the completion of the merger, McAfee shareholders will receive $48 per share in cash.
+	ID	09/20/2010	Safran (N/A)	$1.1 billion	$12.00	$11.84	03/31/2011	1.35%	3.01%
Details of L-1 Identity Solutions Inc Expected to close in the first quarter of 2011 for a closing value of $1.1 billion. On the completion of the merger, ID shareholders will receive $12 per share in cash.
+	SMTB	07/15/2010	People's United Financial Inc. (PBCT)	$60 million	$3.88	$3.83	12/31/2010	1.32%	6.50%
Details of Smithtown Bancorp Inc Expected to close in the fourth quarter of 2010, for a closing value of $60 million. On the completion of the merger, Smithtown Bancorp shareholders will receive 0.1430 shares of People's United common stock and $2.00 in cash.
+	NCOC	09/28/2010	Ranger Energy Investments (N/A)	$8.6 million	$1.00	$0.9878	12/15/2010	1.24%	7.77%
Details of National Coal Corp. Expected to close prior to December 15, 2010 for a closing value of $8.6 million. On the completion of the merger, National Coal shareholders will receive $1.00 per share in cash.
+	HBE	10/06/2010	Kratos Defense & Security Solutions (KTOS)	$45 million	$7.00	$6.92	12/31/2010	1.16%	5.70%
Details of Henry Bros. Electronics Expected to close by the end of the year for a closing value of $45 million. On the completion of the merger, Henry Bros. shareholders will receive $7.00 per share in cash.
+	BNE	02/23/2010	RR Donnelley (RRD)	$481 million	$11.50	$11.37	09/30/2010	1.14%	0.00%
Details of Bowne & Co., Inc. Common Stock Expected to close by the second half of 2010 for a closing value of $481mn. It is a cash deal @ $11.50 per share
+	OMNI	06/04/2010	Wellspring Capital Management (N/A)	$122 million	$2.75	$2.72	11/15/2010	1.10%	14.38%
Details of OMNI Energy Services Corp. Expected to close in the second half of 2010 for a closing value of $122mn. On the completion of the merger OMNI Energy Services shareholders will receive $2.75 per share in cash.
+	NHWK	09/27/2010	Virtual Radiologic (N/A)	$170 million	$6.50	$6.43	03/31/2011	1.09%	2.42%
Details of NightHawk Radiology Holdings Expected to close in the first quarter of 2011 for a closing value of $170 million. On the completion of the merger, NightHawk Radiology shareholders will receive $6.50 per share in cash.
+	NAL	08/19/2010	First Niagara Financial Group (FNFG)	$1.5 billion	$12.71	$12.58	05/15/2011	0.99%	1.74%
Details of New Alliance Bancshares Expected to close in early second quarter of 2011 for a closing value of $1.5 billion. On the completion of the merger, New Alliance shareholders will receive either 1.1 shares of FNFG stock, all cash or cash plus stock. NAL mentioned that the "aggregate consideration is 86% in stock and 14% in cash". The exchange ratio is however fixed at 1.1 shares of FNFG per share of NAL and worked out to $14.09 per share upon announcement of the deal.
+	XJT	08/04/2010	SkyWest (SKYW)	$133 million	$6.75	$6.69	12/31/2010	0.90%	4.42%
Details of Expressjet Holdings Expected to close in the fourth quarter of 2010, for a closing value of $133 million. On the completion of the merger, Expressjet shareholders will receive $6.75 per share in cash.
+	WAIN	06/29/2010	Eastern Bank (N/A)	$163 million	$19.00	$18.84	12/31/2010	0.85%	4.19%
Details of Wainwright Bank & Trust Expected to close in the fourth quarter of 2010 for a closing value of $163 million. On the completion of the merger, Eastern Bank will pay $19 in cash for each share of Wainwright Bank.
+	NRGP	08/09/2010	Inergy (NRGY)	$2.07 billion	$31.69	$31.42	12/31/2010	0.85%	4.17%
Details of Inergy Holdings Expected to close in the fourth quarter of 2010 for a closing value of $2.07 billion in an all-stock deal. On the completion of the merger Inergy Holdings shareholders will receive 0.77 NRGY common units in exchange for each NRGP common unit they own.
+	ALOY	06/24/2010	ZelnickMedia (N/A)	$126.5 million	$9.80	$9.72	12/31/2010	0.82%	4.06%
Details of Alloy Expected to close in the fourth quarter of 2010 for a closing value of $126.5 million. On the completion of the merger, shareholders of Alloy Inc. will receive $9.80 per share in cash.
+	DDMX	10/01/2010	Greenbriar Equity Group (N/A)	$210 million	$21.25	$21.09	02/15/2011	0.76%	2.31%
Details of Dynamex Inc Expected to close on February 15, 2011 for a closing value of $210 million. On the completion of the merger, Dynamex shareholders will receive $21.25 per share in cash
+	ME	04/15/2010	Apache (APA)	$2.7 billion	$25.55	$25.37	12/31/2010	0.70%	3.47%
Details of Mariner Energy, Inc. Mariner En Expected to close by the third quarter of 2010 for a value of $2.7bn. Under the cash and stock deal, Mariner stockholders will receive cash of $7.80 and 0.17043 of a share of Apache common stock in exchange for each share of Mariner common stock.
+	TUNE	09/08/2010	Zoran Corporation (ZRAN)	$84 million	$2.92	$2.90	12/31/2010	0.69%	3.40%
Details of Microtune Inc. Expected to close in the fourth quarter of 2010 for a closing value of $84 million. On the completion of the merger Microtune shareholders will receive $2.92 per share in cash.
+	CLU	09/16/2010	Clearwater Paper Corporation (CLW)	$247 million	$12.00	$11.92	12/31/2010	0.67%	3.31%
Details of Cellu Tissue Holdings Inc. Expected to close in the fourth quarter of 2010 for a closing value of $247 million. On the completion of the merger, Cellu Tissue shareholders will receive $12 per share in cash.
+	GYMB	10/11/2010	Bain Capital (N/A)	$1.8 billion	$65.40	$64.98	12/31/2010	0.65%	3.19%
Details of The Gymboree Corporation Expected to close by the end of the year for a closing value of $1.8 billion. On the completion of the merger, Gymboree shareholders will receive $65.40 per share in cash.
+	KG	10/12/2010	Pfizer Inc. (PFE)	$3.6 billion	$14.25	$14.16	12/31/2010	0.64%	3.14%
Details of King Pharmaceuticals Expected to close by the end of the year for a closing value of $3.6 billion. On the completion of the merger, King Pharmaceuticals will receive $14.25 per share in cash.
+	ACTI	10/11/2010	Assa Abloy (N/A)	$162 million	$3.25	$3.23	12/31/2010	0.62%	3.05%
Details of ActivIdentity Corporation Expected to close by the end of the year for a closing value of $162 million. On the completion of the merger, ActivIdentity shareholders will receive $3.25 per share in cash.
+	AEZ	07/28/2010	Hess Corp (HES)	$450 million	$8.76	$8.71	12/31/2010	0.62%	3.05%
Details of American Oil & Gas Inc. Expected to close in the fourth quarter of 2010 for a closing value of $450 million. On the completion of the merger, Hess will issue 0.1373 shares of its stock for each outstanding share of American Oil & Gas.
+	INET	09/20/2010	an affiliate of Hellman & Friedman Capital Partners (N/A)	$640 million	$13.35	$13.28	12/31/2010	0.53%	2.60%
Details of Internet Brands Inc. Expected to close in the fourth quarter of 2010 for a closing value of $640 million. On the completion of the merger, Internet Brands shareholders will receive $13.35 per share in cash.
+	CRXL	10/06/2010	Johnson & Johnson (JNJ)	$2.41 billion	$34.40	$34.22	03/31/2011	0.53%	1.17%
Details of Crucell NV Expected to close in the first quarter of 2011 for a closing value of $2.41 billion. On the completion of the merger Crucell NV shareholders will receive $34.40 per share in cash.
+	ATAC	07/19/2010	Genco Distribution System Inc. (N/A)	$513 million	$25.00	$24.87	12/31/2010	0.52%	2.58%
Details of ATC Technology Expected to close by the fourth quarter of 2010 for a closing value of $513 million. On the completion of the merger, ATC shareholders will receive $25 per share in cash.
+	LSBX	07/15/2010	People's United Financial Inc. (PBCT)	$96 million	$21.00	$20.90	12/31/2010	0.48%	2.36%
Details of LSB Corporation Expected to close in the fourth quarter of 2010 for a closing value of $96 million. On the completion of the merger, LSBX shareholders will receive $21 per share in cash.
+	ADCT	07/13/2010	Tyco Electronics (TEL)	$1.24 billion	$12.75	$12.69	12/31/2010	0.47%	2.33%
Details of ADC Telecommunications Inc Expected to close in the fourth quarter of 2010, for a closing value of $1.24 billion. On the completion of the merger, ADC Telecommunications shareholders will receive $12.75 per share in cash
+	PZZ	08/16/2010	Leonard Green & Partners (N/A)	$363 million	$8.50	$8.46	12/31/2010	0.47%	2.33%
Details of Prospect Medical Holdings Expected to close by the end of the year 2010 for a closing value of $363 million. On the completion of the merger Prospect Medical Holdings shareholders will receive $8.50 per share in cash.
+	PSYS	05/17/2010	Universal Health (N/A)	$3.1 billion	$33.75	$33.61	12/31/2010	0.42%	2.05%
Details of Psychiatric Solutions, Inc. Expected to close by the fourth quarter of 2010 for a closing value of $3.1bn. On the completion of the merger, Psychiatric Solutions shareholders will receive $33.75 per share in cash.
+	AMPH	09/01/2010	ProAssuarance (PRA)	$233 million	$32.50	$32.37	12/31/2010	0.40%	1.98%
Details of American Physicians Service Group Expected to close by the year-end for a closing value of $233 million. On the completion of the merger, AMPH shareholders will receive $32.50 per share in cash.
+	OICO	09/14/2010	ITT Corporation (ITT)	$29 million	$12.50	$12.45	12/31/2010	0.40%	1.98%
Details of O.I. Corporation Expected to close in late 2010 for a closing value of $29 million. On the completion of the merger, O.I. shareholders will receive $12.00 per share in cash, plus a $0.50 special dividend if certain financial conditions are met.
+	OSTE	08/17/2010	Medtronic (MDT)	$123 million	$6.50	$6.48	12/31/2010	0.31%	1.52%
Details of Osteotech Expected to close for a closing value of $123 million. On the completion of the merger, shareholders of Osteotech will receive $6.50 per share in cash. The transaction is subject to customary closing conditions, including approval by Osteotech's stockholders and U.S. and foreign regulatory clearances.
+	PTV	08/17/2010	Reynolds Group Holdings (N/A)	$6 billion	$33.25	$33.15	12/31/2010	0.30%	1.49%
Details of Pactiv Corporation Expected to close by the end of the year for a closing value of $6 billion. On the completion of the merger, shareholders of Pactiv Corporation will receive $33.25 per share in cash.
+	NZ	09/20/2010	International Business Machines (IBM)	$1.7 billion	$27.00	$26.92	12/31/2010	0.30%	1.47%
Details of Netezza Corporation Expected to close in the fourth quarter of 2010 for a closing value of $1.7 billion. On the completion of the merger, Netezza shareholders will receive $27 per share in cash.
+	MAM	03/12/2010	Emera Inc (N/A)	$75.7 million	$45.00	$44.90	12/31/2010	0.22%	1.10%
Details of Maine & Maritimes Corporation C Expected to close by the end of 2010 for a closing value of $75.7 million. The cash deal is @ $45 per share
+	PPCO	08/09/2010	Endo Pharmaceuticals (ENDP)	$144 million	$5.00	$4.99	12/31/2010	0.20%	0.99%
Details of Penwest Pharmaceuticals Expected to close in the fourth quarter of 2010 for a closing value of $144 million. On the completion of the merger, Penwest Pharmaceuticals shareholders will receive $5.00 per share in cash.
+	STU	09/17/2010	Discover Financial Services (N/A)	N/A	$30.00	$29.95	12/31/2010	0.17%	0.82%
Details of Student Loan Corporation Expected to close by the end of 2010. On the completion of the merger, The Student Loan Corporation shareholders will receive $30.00 per share in cash.
+	NYM	07/15/2010	ProSight (N/A)	$230 million	$25.75	$25.71	12/31/2010	0.16%	0.77%
Details of NYMagic Expected to close in the fourth quarter of 2010 for a closing value of $230 million. On the completion of the merger, NYMagic shareholders will receive $25.75 per share in cash.
+	NUHC	09/20/2010	Arrow Electronics (ARW)	$130 million	$7.00	$6.99	12/31/2010	0.14%	0.71%
Details of Nu Horizons Electronics Corp Expected to close in the fouth quarter of 2010 for a closing value of $130 million. On the completion of the merger, Nu Horizons Electronics shareholders will receive $7.00 per share in cash.
+	ARST	09/13/2010	Hewlett-Packard Company (HPQ)	$1.5 billion	$43.50	$43.46	12/31/2010	0.09%	0.45%
Details of ArcSight Inc. Expected to close by the end of the year for a closing value of $1.5 billion. On the completion of the merger, ArcSight shareholders will receive $43.50 per share in cash.
+	BKC	09/02/2010	3G Capital (N/A)	$3.26 billion	$24.00	$23.98	12/31/2010	0.08%	0.41%
Details of Burger King Holdings Inc Expected to close in the fourth quarter of 2010 for a closing value of $3.26 billion. On the completion of the merger, shareholders of Burger King will receive $24 per share in cash.
+	DTPI	08/24/2010	PricewaterhouseCoopers (N/A)	$378 million	$12.50	$12.49	12/31/2010	0.08%	0.39%
Details of Diamond Management & Technology Consultants, Inc. Expected to close in the fourth quarter of 2010 for a closing value of $378 million. On the completion of the merger, shareholders of Diamond Management & Technology Consultants will receive $12.50 per share in cash.
+	ACAP	07/08/2010	The Doctors Company (N/A)	$386 million	$41.50	$41.47	12/31/2010	0.07%	0.36%
Details of American Physicians Capital Inc. Expected to close in the fourth quarter of 2010 for a closing value of $386 million. On the completion of the merger, American Physicians Capital shareholders will receive $41.50 per share in cash.
+	THMD	10/05/2010	Irving Place Capital (N/A)	$422 million	$15.00	$14.99	12/31/2010	0.07%	0.33%
Details of Thermadyne Holdings Expected to close in December 2010 for a closing value of $422 million. On the completion of the merger, Thermadyne Holdings shareholders will receive $15.00 per share in cash.
+	ACTL	10/04/2010	Microsemi (MSCC)	$430 million	$20.88	$20.87	01/02/2011	0.05%	0.23%
Details of Actel Corporation Expected to close in Microsemi�s fiscal Q1 ending January 2 for a closing value of $430 million. On the completion of the merger, Actel shareholders will receive $20.88 per share in cash.
+	COGT	08/30/2010	3M Co. (MMM)	$943 million	$10.50	$10.50	12/31/2010	0.00%	0.00%
Details of Cogent Inc. Expected to close in the fourth quarter of 2010 for a closing value of $943 million. On the completion of the merger Cogent shareholders will receive $10.50 per share in cash.
+	HWK	10/15/2010	Carlisle (CSL)	$413 million	$50.00	$50.01	12/31/2010	-0.02%	-0.10%
Details of Hawk Corporation Expected to close by the end of the year for a closing value of $413 million. On the completion of the merger, Hawk shareholders will receive $50.00 per share in cash.
+	KEI	09/28/2010	Danaher Corporation (DHR)	$340 million	$21.60	$21.61	12/31/2010	-0.05%	-0.23%
Details of Keithley Instruments Expected to close in the fourth quarter of 2010 for a closing value of $340 million. On the completion of the merger, Keithley Instruments shareholders will receive $21.60 per share in cash.
+	CGC	10/01/2010	Gammon Gold (GRS)	$288 million	$4.58	$4.58	12/31/2010	-0.07%	-0.33%
Details of Capital Gold Corp. Expected to close in the fourth quarter of 2010 for a closing value of $288 million. On the completion of the merger, Gammon will issue 0.5209 of a common share for each Capital share, in addition to paying 79 cents a share in cash.
+	ROME	10/12/2010	Berkshire Hills Bancorp (BHLB)	$74 million	$10.74	$10.77	03/31/2011	-0.29%	-0.64%
Details of Rome Bancorp Inc. Expected to close by the first quarter of 2011 for a closing value of $74 million. On the completion of the merger, 70% of the outstanding Rome Bancorp shares will be exchanged for Berkshire Hills Bancorp shares at a fixed exchange ratio of 0.5658 Berkshire Hills Bancorp shares for each share of Rome Bancorp, and the remaining 30% of Rome Bancorp shares will be exchanged for $11.25 per share in cash.
+	MIR	04/12/2010	RRI Energy In. (RRI)	$1.6 billion	$10.32	$10.36	12/31/2010	-0.39%	-1.93%
Details of Mirant Corp Common Stock Expected to close by the end of the year 2010 for a value of $1.6bn. Mirant Corp. will combine with RRI Energy Inc. in a stock-deal to form GenOn Energy. Mirant stockholders will get about 2.84 RRI common shares for each Mirant share they own.
+	ACV	09/27/2010	Unilever PLC (N/A)	$3.7 billion	$37.50	$37.72	12/31/2010	-0.58%	-2.88%
Details of Alberto Culver Expected to close in the fourth quarter of 2010 for a closing value of $3.7 billion. On the completion of the merger, Albert Culver shareholders will receive $37.50 per share in cash.
+	PTEC	08/17/2010	Marlin Equity Partners (N/A)	$139 million	$3.85	$3.88	12/31/2010	-0.77%	-3.81%
Details of Phoenix Technologies Ltd. Expected to close by the end of the year for a closing value of $139 million. On the completion of the merger, shareholders of Phoenix Technologies will receive $3.85 per share in cash.
+	PTEC	08/17/2010	Marlin Equity Partners (N/A)	$139 million	$3.85	$3.88	12/31/2010	-0.77%	-3.81%
Details of Phoenix Technologies Ltd. Expected to close by the end of the year for a closing value of $139 million. On the completion of the merger, shareholders of Phoenix Technologies will receive $3.85 per share in cash.
+	CCBP	08/09/2010	F.N.B. Corporation (FNB)	$70 million	$40.78	$41.25	12/31/2010	-1.14%	-5.62%
Details of Comm Bancorp Expected to close in the fourth quarter of 2010 for a closing value of $70 million. On the completion of the merger Comm Bancorp shareholders will receive 3.4545 shares of F.N.B. common stock and $10.00 in cash for each share of Comm Bancorp held.
+	ULCM	10/12/2010	affiliates of Platinum Equity (N/A)	N/A	$8.07	$8.30	12/31/2010	-2.77%	-13.67%
Details of Ulticom Inc. Expected to close by the end of the year. under the terms of the agreement, Ulticom�s public shareholders will receive $2.33 per share in cash, after payment of a special dividend by the Company of $5.74 per share.
+	RSCR	09/07/2010	Onex Corp (N/A)	$390 million	$13.25	$13.64	12/31/2010	-2.86%	-14.10%
Details of Res-Care Inc Expected to close by the end of the year for a closing value of $390 million. On the completion of the merger Res-Care shareholders will receive $13.25 per share in cash.
+	DVD	09/27/2010	)–Dover Downs Gaming & Entertainment Inc (DDE)	N/A	$1.73	$1.82	12/31/2010	-4.75%	-23.45%
Details of Dover Motorsports Inc Expected to close in the fourth quarter of 2010. On the completion of the merger, Dover Motorsports shareholders will receive 0.501 shares of Dover Downs Gaming & Entertainment common stock for each Dover Motorsports share held.
+	TRBN	08/12/2010	Emergent BioSolution (EBS)	$96.8 million	$4.37	$4.63	12/31/2010	-5.59%	-27.56%
Details of Trubion Pharmaceuticals Expected to close by the end of the year 2010 for a closing value of approximately $96.8 million. On the completion of the merger, Trubion Pharmaceuticals shareholders will receive $1.365 per share in cash and 0.1641 shares of Emergent BioSolutions common stock per share held, plus one Contingent Value Right (CVR) per share. The total potential aggregate value of the CVRs is $38.7 million over a 36-month period, post-closing. The combination of the upfront consideration along with the potential value of the CVRs results in total consideration of up to $135.5 million for Trubion stockholders. The Milestone Events related to the CVRs can be found at the following link http://finance.yahoo.com/news/Trubion-Pharmaceuticals-prnews-758460745.html?x=0&.v=1
+	DYN	08/13/2010	Blackstone Group (BX)	$4.7 billion	$4.50	$4.79	12/31/2010	-6.05%	-29.86%
Details of Dynegy Expected to close by the end of the year for a closing value of $4.7 billion. On the completion of the merger, Dynegy shareholders will receive $4.50 per share in cash.
+	ABII	06/30/2010	Celgene (CELG)	$2.9 billion	$73.23	$78.25	12/31/2010	-6.41%	-31.62%
Details of Abraxis Bioscience Inc. Expected to close in the fourth quarter of 2010 for a closing value of $2.9 billion. Under terms of the deal, shareholders of Abraxis will receive $58 and 0.2617 shares of Celgene for each Abraxis share they own.
+	CADE	10/06/2010	Community Bancorp LLC (N/A)	$38 million	$2.25	$2.45	03/31/2011	-8.31%	-18.48%
Details of Cadence Financial Corporation Expected to close in the first quarter of 2011 for a closing value of $23.8 million in an all-stock deal. On the completion of the merger, Cadence shareholders will receive receive 0.097 shares of Trustmark common stock for each share of Cadence they hold. Revision on 10/06/2010: Cadence Financial agreed to be acquired by Community Bancorp for $38 million at $2.50 per share in cash, after terminating its previously announced agreement with Trustmark Corporation
+	ALY	08/12/2010	Seawell (N/A)	$890 million	$4.25	$4.67	12/31/2010	-8.99%	-44.36%
Details of Allis-Chalmers Energy, Inc. Expected to close by the end of the year 2010 for a closing value of $890 million. On the completion of the merger, Allis-Chalmers shareholders will get $4.25 in cash or 1.15 Seawell shares for each shares of Allis-Chalmers, subject to proration if more than 35% of the shares elect to receive cash. Seawell Ltd is registered in the Norwegian OTC system, ticker symbol SEAW.
+	BXC	07/22/2010	Cerberus Capital Management (N/A)	$111.1 million	$3.40	$3.99	12/31/2010	-14.79%	-72.94%
Details of BlueLinx Holdings Inc. Expected to close in the fourth quarter of 2010 for a closing value of $111.1 million. On the completion of the merger, BXC shareholders will receive $3.40 per share in cash.
+	OTIX	09/13/2010	William Demant (N/A)	$50 million	$8.60	$11.40	12/31/2010	-24.56%	-121.15%
Details of OTIX Global Inc. Expected to close between mid-November and the end of 2010 for a closing value of $50 million. On the completion of the merger, OTIX shareholders will receive $8.60 per share in cash.

Voluntary Disclosure: I have a long-position in AirTran Holdings (AAI) and a short position in Southwest Airlines (LUV).

Contributing Author: Ann Kumar

Merger Arbitrage Mondays – October 18, 2010

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