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 201092
Total Number of Deals That Did Not Complete in 20106
Total Number of Pending Deals
Cash Deals55
Stock Deals14
Stock & Cash Deals13
Total Number of Pending Deals82

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:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
TLCR06/07/2010Grifols (GRF.MC)$29.42$24.1412/31/2010 21.89% 119.23%
MAJC09/21/2010Bayside Capital Partners (N/A)$0.45$0.390703/31/2011 15.18% 35.29%
SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$6.75$6.0612/31/2010 11.39% 62.03%
MROE10/06/2010Old National Bancorp (ONB)$12.75$11.5003/31/2011 10.87% 25.27%
DTG04/26/2010Avis (CAR)$53.12$48.0312/31/2010 10.61% 57.79%
AAI09/27/2010Southwest Airlines (LUV)$8.07$7.4903/31/2011 7.80% 18.12%
ADAM08/30/2010Ebix Inc. (EBIX)$7.31$6.8612/31/2010 6.49% 35.38%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$25.09$23.7512/31/2010 5.63% 30.69%
AYE02/11/2010FirstEnergy (FE)$25.03$23.7403/31/2011 5.42% 12.59%
ATBC05/10/2010Jacksonville Bancorp (JAXB)$2.17$2.0712/31/2010 4.83% 26.32%

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$29.40$24.1412/31/2010 21.78% 118.67%
+MAJC09/21/2010Bayside Capital Partners (N/A)$7.8 million$0.45$0.390703/31/2011 15.18% 35.29%
+SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$19.5 million$6.75$6.0612/31/2010 11.39% 62.03%
+MROE10/06/2010Old National Bancorp (ONB)$83.5 million$12.75$11.5003/31/2011 10.87% 25.27%
+DTG04/26/2010Avis (CAR)$1.56 billion$53.12$48.0312/31/2010 10.61% 57.79%
+AAI09/27/2010Southwest Airlines (LUV)$1.4 billion$8.07$7.4903/31/2011 7.80% 18.12%
+ADAM08/30/2010Ebix Inc. (EBIX)$66 million$7.31$6.8612/31/2010 6.49% 35.38%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)$954 million$25.09$23.7512/31/2010 5.63% 30.69%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$25.03$23.7403/31/2011 5.42% 12.59%
+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.17$2.0712/31/2010 4.83% 26.32%
+Q04/22/2010Century Link (CTL)$10.6 billion$6.75$6.4604/21/2011 4.55% 9.34%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$44.33$42.5412/31/2010 4.21% 22.93%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.80$11.5012/30/2010 2.61% 14.43%
+OCNW09/16/2010Calix Inc. (CALX)$171 million$7.62$7.4512/31/2010 2.22% 12.12%
+BNE02/23/2010RR Donnelley (RRD)$481 million$11.50$11.2509/30/2010 2.22% 0.00%
+NAL08/19/2010First Niagara Financial Group (FNFG)$1.5 billion$13.32$13.0505/15/2011 2.08% 3.75%
+NCOC09/28/2010Ranger Energy Investments (N/A)$8.6 million$1.00$0.982112/15/2010 1.82% 13.04%
+ID09/20/2010Safran (N/A)$1.1 billion$12.00$11.8303/31/2011 1.44% 3.34%
+MFE08/19/2010Intel Corporation (INTC)$7.68 billion$48.00$47.3512/31/2010 1.37% 7.48%
+RAE09/20/2010Battery Ventures (N/A)$95 million$1.60$1.5812/31/2010 1.27% 6.90%
+TTES10/06/2010Robbins & Myers Inc. (RBN)$422 million$33.08$32.6712/31/2010 1.26% 6.84%
+NHWK09/27/2010Virtual Radiologic (N/A)$170 million$6.50$6.4203/31/2011 1.25% 2.90%
+EPE09/07/2010Enterprise Products (EPD)$8 billion$63.11$62.3412/31/2010 1.23% 6.69%
+ROAC10/18/2010Swenson Granite Co. (N/A)$39 million$5.25$5.1903/31/2011 1.16% 2.69%
+CSCX10/19/2010Opto Circuits (N/A)N/A$2.30$2.2812/31/2010 0.88% 4.78%
+HBE10/06/2010Kratos Defense & Security Solutions (KTOS)$45 million$7.00$6.9412/31/2010 0.86% 4.71%
+OICO09/14/2010ITT Corporation (ITT)$29 million$12.50$12.4112/31/2010 0.73% 3.95%
+DDMX10/01/2010Greenbriar Equity Group (N/A)$210 million$21.25$21.1002/15/2011 0.71% 2.30%
+GYMB10/11/2010Bain Capital (N/A)$1.8 billion$65.40$64.9412/31/2010 0.71% 3.86%
+ALOY06/24/2010ZelnickMedia (N/A)$126.5 million$9.80$9.73212/31/2010 0.70% 3.81%
+TUNE09/08/2010Zoran Corporation (ZRAN)$84 million$2.92$2.9012/31/2010 0.69% 3.76%
+KG10/12/2010Pfizer Inc. (PFE)$3.6 billion$14.25$14.1612/31/2010 0.64% 3.46%
+CLRT10/22/2010GE Healthcare (GE)$580 million$5.00$4.9701/31/2011 0.60% 2.25%
+CLU09/16/2010Clearwater Paper Corporation (CLW)$247 million$12.00$11.9312/31/2010 0.59% 3.20%
+INET09/20/2010an affiliate of Hellman & Friedman Capital Partners (N/A)$640 million$13.35$13.2812/31/2010 0.53% 2.87%
+AEZ07/28/2010Hess Corp (HES)$450 million$8.68$8.6412/31/2010 0.51% 2.79%
+PZZ08/16/2010Leonard Green & Partners (N/A)$363 million$8.50$8.4612/31/2010 0.47% 2.58%
+OSTE08/17/2010Medtronic (MDT)$123 million$6.50$6.4712/31/2010 0.46% 2.53%
+ME04/15/2010Apache (APA)$2.7 billion$25.06$24.9512/31/2010 0.46% 2.50%
+NUHC09/20/2010Arrow Electronics (ARW)$130 million$7.00$6.9712/31/2010 0.43% 2.34%
+PPCO08/09/2010Endo Pharmaceuticals (ENDP)$144 million$5.00$4.9812/31/2010 0.40% 2.19%
+KEI09/28/2010Danaher Corporation (DHR)$340 million$21.60$21.5212/31/2010 0.37% 2.03%
+STU09/17/2010Discover Financial Services (N/A)N/A$30.00$29.9012/31/2010 0.33% 1.82%
+LSBX07/15/2010People's United Financial Inc. (PBCT)$96 million$21.00$20.9312/31/2010 0.33% 1.82%
+CRXL10/06/2010Johnson & Johnson (JNJ)$2.41 billion$34.40$34.2903/31/2011 0.32% 0.75%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.7112/31/2010 0.31% 1.71%
+ACTI10/11/2010Assa Abloy (N/A)$162 million$3.25$3.2412/31/2010 0.31% 1.68%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$33.6612/31/2010 0.27% 1.46%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.8912/31/2010 0.25% 1.33%
+PTV08/17/2010Reynolds Group Holdings (N/A)$6 billion$33.25$33.1712/31/2010 0.24% 1.31%
+HWK10/15/2010Carlisle (CSL)$413 million$50.00$49.8812/31/2010 0.24% 1.31%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.6912/31/2010 0.23% 1.27%
+ACV09/27/2010Unilever PLC (N/A)$3.7 billion$37.50$37.4212/31/2010 0.21% 1.16%
+DTPI08/24/2010PricewaterhouseCoopers (N/A)$378 million$12.50$12.4812/31/2010 0.16% 0.87%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$18.9712/31/2010 0.16% 0.86%
+XJT08/04/2010SkyWest (SKYW)$133 million$6.75$6.7412/31/2010 0.15% 0.81%
+AMPH09/01/2010ProAssuarance (PRA)$233 million$32.50$32.4712/31/2010 0.09% 0.50%
+NRGP08/09/2010Inergy (NRGY)$2.07 billion$30.18$30.1512/31/2010 0.09% 0.48%
+ACTL10/04/2010Microsemi (MSCC)$430 million$20.88$20.8701/02/2011 0.05% 0.25%
+OMNI06/04/2010Wellspring Capital Management (N/A)$122 million$2.75$2.7511/15/2010 0.00% 0.00%
+RSCR09/07/2010Onex Corp (N/A)$390 million$13.25$13.2512/31/2010 0.00% 0.00%
+COGT08/30/20103M Co. (MMM)$943 million$10.50$10.5012/31/2010 0.00% 0.00%
+NZ09/20/2010International Business Machines (IBM)$1.7 billion$27.00$27.0012/31/2010 0.00% 0.00%
+SMTB07/15/2010People's United Financial Inc. (PBCT)$60 million$3.80$3.8112/31/2010 -0.18% -0.97%
+THMD10/05/2010Irving Place Capital (N/A)$422 million$15.00$15.0512/31/2010 -0.33% -1.81%
+SHMR10/15/2010Essilor (N/A)$130 million$14.50$14.5806/30/2011 -0.55% -0.81%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$9.98$10.0412/31/2010 -0.61% -3.30%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)$74 million$10.89$10.9603/31/2011 -0.68% -1.57%
+NST10/18/2010Northeast Utilities (NU)$4.17 billion$40.48$40.8409/30/2011 -0.89% -0.96%
+AGAM10/18/2010St. Jude Medical (STJ)$1.04 billion$20.80$20.9912/31/2010 -0.91% -4.93%
+CGC10/01/2010Gammon Gold (GRS)$288 million$4.26$4.3312/31/2010 -1.51% -8.25%
+DVD09/27/2010)–Dover Downs Gaming & Entertainment Inc (DDE)N/A$1.74$1.7712/31/2010 -1.78% -9.70%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$40.40$41.2812/31/2010 -2.13% -11.62%
+ULCM10/12/2010affiliates of Platinum Equity (N/A)N/A$8.07$8.2812/31/2010 -2.54% -13.82%
+TRBN08/12/2010Emergent BioSolution (EBS)$96.8 million$4.41$4.5912/31/2010 -3.98% -21.67%
+ACLI10/18/2010Affiliates of Platinum Equity (N/A)$777 million$33.00$34.4012/31/2010 -4.07% -22.17%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$4.7612/31/2010 -5.46% -29.76%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$4.0912/31/2010 -5.87% -31.97%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$4.0912/31/2010 -5.87% -31.97%
+CADE10/06/2010Community Bancorp LLC (N/A)$38 million$2.25$2.4503/31/2011 -8.31% -19.31%
+ALY08/12/2010Seawell (N/A)$890 million$4.25$4.8712/31/2010 -12.73% -69.36%
+OTIX09/13/2010William Demant (N/A)$50 million$8.60$10.9612/31/2010 -21.53% -117.31%

Contributing Author: Ann Kumar