Merger Arbitrage Mondays – October 25, 2010

  • October 25, 2010

Merger activity remained steady last week with six new deals announced and four closing.

Deal Statistics:

Total Number of Deals Closed in 2010 92
Total Number of Deals That Did Not Complete in 2010 6
Total Number of Pending Deals
Cash Deals 55
Stock Deals 14
Stock & Cash Deals 13
Total Number of Pending Deals 82

New Deals:

  1. The acquisition of AGA Medical Holdings (AGAM) by St. Jude Medical (STJ) in a cash and stock transaction valued at approximately $1.3 billion where AGA Medical shareholders will receive $20.80 for each share of AGA Medical stock they own in the form of cash and/or St. Jude Medical common stock. The split between cash and stock consideration will be 50 percent of each. Holders of AGA Medical stock tendered in the exchange offer may elect to receive cash or shares of St. Jude Medical common stock.
  2. The acquisition of Rock of Ages Corporation (ROAC) by Swenson Granite for $39 million or $5.25 per share in cash
  3. The acquisition of NSTAR (NST) by Northeast Utilities (NU) for $4.17 billion in an all-stock deal. The deal calls for the exchange of 1.312 common shares of Northeast Utilities for each NSTAR share.
  4. The acquisition of American Commercial Lines Inc. (ACLI) by an affiliate of Platinum Equity for $777 million or $33.00 per share in cash.
  5. The acquisition of Cardiac Science Corporation (CSCX) by Indian company Opto Circuits (BSE: 532391) for $2.30 per share in cash.
  6. The acquisition of Clarient (CLRT) by GE Healthcare (GE) for $580 million or $5.00 per share in cash.

Modified Deals:

  1. Cerberus affiliate ends BlueLinx (BXC) takeover attempt after tender offer condition isn’t met

Closed Deals:

  1. The acquisition of Burger King Holdings (BKC) by 3G Capital on October 19, 2010
  2. The acquisition of American Physicians Capital (ACAP) by the Doctors Company on October 22, 2010
  3. The acquisition of ATC Technology (ATAC) by Genco Distribution Systems on October 22, 2010
  4. The acquisition of ArcSight (ARST) by HP.


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) $29.42 $24.14 12/31/2010 21.89% 119.23%
MAJC 09/21/2010 Bayside Capital Partners (N/A) $0.45 $0.3907 03/31/2011 15.18% 35.29%
SSE 02/23/2010 Naugatuck Valley Financial Corp (NVSL) $6.75 $6.06 12/31/2010 11.39% 62.03%
MROE 10/06/2010 Old National Bancorp (ONB) $12.75 $11.50 03/31/2011 10.87% 25.27%
DTG 04/26/2010 Avis (CAR) $53.12 $48.03 12/31/2010 10.61% 57.79%
AAI 09/27/2010 Southwest Airlines (LUV) $8.07 $7.49 03/31/2011 7.80% 18.12%
ADAM 08/30/2010 Ebix Inc. (EBIX) $7.31 $6.86 12/31/2010 6.49% 35.38%
PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $25.09 $23.75 12/31/2010 5.63% 30.69%
AYE 02/11/2010 FirstEnergy (FE) $25.03 $23.74 03/31/2011 5.42% 12.59%
ATBC 05/10/2010 Jacksonville Bancorp (JAXB) $2.17 $2.07 12/31/2010 4.83% 26.32%

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 $29.40 $24.14 12/31/2010 21.78% 118.67%
+ MAJC 09/21/2010 Bayside Capital Partners (N/A) $7.8 million $0.45 $0.3907 03/31/2011 15.18% 35.29%
+ SSE 02/23/2010 Naugatuck Valley Financial Corp (NVSL) $19.5 million $6.75 $6.06 12/31/2010 11.39% 62.03%
+ MROE 10/06/2010 Old National Bancorp (ONB) $83.5 million $12.75 $11.50 03/31/2011 10.87% 25.27%
+ DTG 04/26/2010 Avis (CAR) $1.56 billion $53.12 $48.03 12/31/2010 10.61% 57.79%
+ AAI 09/27/2010 Southwest Airlines (LUV) $1.4 billion $8.07 $7.49 03/31/2011 7.80% 18.12%
+ ADAM 08/30/2010 Ebix Inc. (EBIX) $66 million $7.31 $6.86 12/31/2010 6.49% 35.38%
+ PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $954 million $25.09 $23.75 12/31/2010 5.63% 30.69%
+ AYE 02/11/2010 FirstEnergy (FE) $8.5 billion $25.03 $23.74 03/31/2011 5.42% 12.59%
+ ATBC 05/10/2010 Jacksonville Bancorp (JAXB) N/A $2.17 $2.07 12/31/2010 4.83% 26.32%
+ Q 04/22/2010 Century Link (CTL) $10.6 billion $6.75 $6.46 04/21/2011 4.55% 9.34%
+ BGH 06/11/2010 Buckeye Partners LP (BPL) $1.14 billion $44.33 $42.54 12/31/2010 4.21% 22.93%
+ PRPX 02/17/2010 L.B. Foster Co. (FSTR) $112 million $11.80 $11.50 12/30/2010 2.61% 14.43%
+ OCNW 09/16/2010 Calix Inc. (CALX) $171 million $7.62 $7.45 12/31/2010 2.22% 12.12%
+ BNE 02/23/2010 RR Donnelley (RRD) $481 million $11.50 $11.25 09/30/2010 2.22% 0.00%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) $1.5 billion $13.32 $13.05 05/15/2011 2.08% 3.75%
+ NCOC 09/28/2010 Ranger Energy Investments (N/A) $8.6 million $1.00 $0.9821 12/15/2010 1.82% 13.04%
+ ID 09/20/2010 Safran (N/A) $1.1 billion $12.00 $11.83 03/31/2011 1.44% 3.34%
+ MFE 08/19/2010 Intel Corporation (INTC) $7.68 billion $48.00 $47.35 12/31/2010 1.37% 7.48%
+ RAE 09/20/2010 Battery Ventures (N/A) $95 million $1.60 $1.58 12/31/2010 1.27% 6.90%
+ TTES 10/06/2010 Robbins & Myers Inc. (RBN) $422 million $33.08 $32.67 12/31/2010 1.26% 6.84%
+ NHWK 09/27/2010 Virtual Radiologic (N/A) $170 million $6.50 $6.42 03/31/2011 1.25% 2.90%
+ EPE 09/07/2010 Enterprise Products (EPD) $8 billion $63.11 $62.34 12/31/2010 1.23% 6.69%
+ ROAC 10/18/2010 Swenson Granite Co. (N/A) $39 million $5.25 $5.19 03/31/2011 1.16% 2.69%
+ CSCX 10/19/2010 Opto Circuits (N/A) N/A $2.30 $2.28 12/31/2010 0.88% 4.78%
+ HBE 10/06/2010 Kratos Defense & Security Solutions (KTOS) $45 million $7.00 $6.94 12/31/2010 0.86% 4.71%
+ OICO 09/14/2010 ITT Corporation (ITT) $29 million $12.50 $12.41 12/31/2010 0.73% 3.95%
+ DDMX 10/01/2010 Greenbriar Equity Group (N/A) $210 million $21.25 $21.10 02/15/2011 0.71% 2.30%
+ GYMB 10/11/2010 Bain Capital (N/A) $1.8 billion $65.40 $64.94 12/31/2010 0.71% 3.86%
+ ALOY 06/24/2010 ZelnickMedia (N/A) $126.5 million $9.80 $9.732 12/31/2010 0.70% 3.81%
+ TUNE 09/08/2010 Zoran Corporation (ZRAN) $84 million $2.92 $2.90 12/31/2010 0.69% 3.76%
+ KG 10/12/2010 Pfizer Inc. (PFE) $3.6 billion $14.25 $14.16 12/31/2010 0.64% 3.46%
+ CLRT 10/22/2010 GE Healthcare (GE) $580 million $5.00 $4.97 01/31/2011 0.60% 2.25%
+ CLU 09/16/2010 Clearwater Paper Corporation (CLW) $247 million $12.00 $11.93 12/31/2010 0.59% 3.20%
+ INET 09/20/2010 an affiliate of Hellman & Friedman Capital Partners (N/A) $640 million $13.35 $13.28 12/31/2010 0.53% 2.87%
+ AEZ 07/28/2010 Hess Corp (HES) $450 million $8.68 $8.64 12/31/2010 0.51% 2.79%
+ PZZ 08/16/2010 Leonard Green & Partners (N/A) $363 million $8.50 $8.46 12/31/2010 0.47% 2.58%
+ OSTE 08/17/2010 Medtronic (MDT) $123 million $6.50 $6.47 12/31/2010 0.46% 2.53%
+ ME 04/15/2010 Apache (APA) $2.7 billion $25.06 $24.95 12/31/2010 0.46% 2.50%
+ NUHC 09/20/2010 Arrow Electronics (ARW) $130 million $7.00 $6.97 12/31/2010 0.43% 2.34%
+ PPCO 08/09/2010 Endo Pharmaceuticals (ENDP) $144 million $5.00 $4.98 12/31/2010 0.40% 2.19%
+ KEI 09/28/2010 Danaher Corporation (DHR) $340 million $21.60 $21.52 12/31/2010 0.37% 2.03%
+ STU 09/17/2010 Discover Financial Services (N/A) N/A $30.00 $29.90 12/31/2010 0.33% 1.82%
+ LSBX 07/15/2010 People's United Financial Inc. (PBCT) $96 million $21.00 $20.93 12/31/2010 0.33% 1.82%
+ CRXL 10/06/2010 Johnson & Johnson (JNJ) $2.41 billion $34.40 $34.29 03/31/2011 0.32% 0.75%
+ ADCT 07/13/2010 Tyco Electronics (TEL) $1.24 billion $12.75 $12.71 12/31/2010 0.31% 1.71%
+ ACTI 10/11/2010 Assa Abloy (N/A) $162 million $3.25 $3.24 12/31/2010 0.31% 1.68%
+ PSYS 05/17/2010 Universal Health (N/A) $3.1 billion $33.75 $33.66 12/31/2010 0.27% 1.46%
+ MAM 03/12/2010 Emera Inc (N/A) $75.7 million $45.00 $44.89 12/31/2010 0.25% 1.33%
+ PTV 08/17/2010 Reynolds Group Holdings (N/A) $6 billion $33.25 $33.17 12/31/2010 0.24% 1.31%
+ HWK 10/15/2010 Carlisle (CSL) $413 million $50.00 $49.88 12/31/2010 0.24% 1.31%
+ NYM 07/15/2010 ProSight (N/A) $230 million $25.75 $25.69 12/31/2010 0.23% 1.27%
+ ACV 09/27/2010 Unilever PLC (N/A) $3.7 billion $37.50 $37.42 12/31/2010 0.21% 1.16%
+ DTPI 08/24/2010 PricewaterhouseCoopers (N/A) $378 million $12.50 $12.48 12/31/2010 0.16% 0.87%
+ WAIN 06/29/2010 Eastern Bank (N/A) $163 million $19.00 $18.97 12/31/2010 0.16% 0.86%
+ XJT 08/04/2010 SkyWest (SKYW) $133 million $6.75 $6.74 12/31/2010 0.15% 0.81%
+ AMPH 09/01/2010 ProAssuarance (PRA) $233 million $32.50 $32.47 12/31/2010 0.09% 0.50%
+ NRGP 08/09/2010 Inergy (NRGY) $2.07 billion $30.18 $30.15 12/31/2010 0.09% 0.48%
+ ACTL 10/04/2010 Microsemi (MSCC) $430 million $20.88 $20.87 01/02/2011 0.05% 0.25%
+ OMNI 06/04/2010 Wellspring Capital Management (N/A) $122 million $2.75 $2.75 11/15/2010 0.00% 0.00%
+ RSCR 09/07/2010 Onex Corp (N/A) $390 million $13.25 $13.25 12/31/2010 0.00% 0.00%
+ COGT 08/30/2010 3M Co. (MMM) $943 million $10.50 $10.50 12/31/2010 0.00% 0.00%
+ NZ 09/20/2010 International Business Machines (IBM) $1.7 billion $27.00 $27.00 12/31/2010 0.00% 0.00%
+ SMTB 07/15/2010 People's United Financial Inc. (PBCT) $60 million $3.80 $3.81 12/31/2010 -0.18% -0.97%
+ THMD 10/05/2010 Irving Place Capital (N/A) $422 million $15.00 $15.05 12/31/2010 -0.33% -1.81%
+ SHMR 10/15/2010 Essilor (N/A) $130 million $14.50 $14.58 06/30/2011 -0.55% -0.81%
+ MIR 04/12/2010 RRI Energy In. (RRI) $1.6 billion $9.98 $10.04 12/31/2010 -0.61% -3.30%
+ ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) $74 million $10.89 $10.96 03/31/2011 -0.68% -1.57%
+ NST 10/18/2010 Northeast Utilities (NU) $4.17 billion $40.48 $40.84 09/30/2011 -0.89% -0.96%
+ AGAM 10/18/2010 St. Jude Medical (STJ) $1.04 billion $20.80 $20.99 12/31/2010 -0.91% -4.93%
+ CGC 10/01/2010 Gammon Gold (GRS) $288 million $4.26 $4.33 12/31/2010 -1.51% -8.25%
+ DVD 09/27/2010 )–Dover Downs Gaming & Entertainment Inc (DDE) N/A $1.74 $1.77 12/31/2010 -1.78% -9.70%
+ CCBP 08/09/2010 F.N.B. Corporation (FNB) $70 million $40.40 $41.28 12/31/2010 -2.13% -11.62%
+ ULCM 10/12/2010 affiliates of Platinum Equity (N/A) N/A $8.07 $8.28 12/31/2010 -2.54% -13.82%
+ TRBN 08/12/2010 Emergent BioSolution (EBS) $96.8 million $4.41 $4.59 12/31/2010 -3.98% -21.67%
+ ACLI 10/18/2010 Affiliates of Platinum Equity (N/A) $777 million $33.00 $34.40 12/31/2010 -4.07% -22.17%
+ DYN 08/13/2010 Blackstone Group (BX) $4.7 billion $4.50 $4.76 12/31/2010 -5.46% -29.76%
+ PTEC 08/17/2010 Marlin Equity Partners (N/A) $139 million $3.85 $4.09 12/31/2010 -5.87% -31.97%
+ PTEC 08/17/2010 Marlin Equity Partners (N/A) $139 million $3.85 $4.09 12/31/2010 -5.87% -31.97%
+ CADE 10/06/2010 Community Bancorp LLC (N/A) $38 million $2.25 $2.45 03/31/2011 -8.31% -19.31%
+ ALY 08/12/2010 Seawell (N/A) $890 million $4.25 $4.87 12/31/2010 -12.73% -69.36%
+ OTIX 09/13/2010 William Demant (N/A) $50 million $8.60 $10.96 12/31/2010 -21.53% -117.31%

Contributing Author: Ann Kumar