×

Subscribe Today

Get our free articles delivered directly to your email!

Continue reading

Merger Arbitrage Mondays – November 01, 2010

  • November 1, 2010

Merger Activity decreased slightly last week with five new deals announced and four closing. You can find all the deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 201094
Total Number of Deals That Did Not Complete in 20106
Total Number of Pending Deals
Cash Deals59
Stock Deals14
Stock & Cash Deals12
Total Number of Pending Deals85


New Deals:

  1. The acquisition of CommScope (CTV) by the Carlyle Group for $3 billion or $31.50 per share in cash.
  2. The acquisition of BMP Sunstone Corporation (BJGP) by Sanofi-aventis for $520.6 million or $10.00 per share in cash.
  3. The acquisition of Syniverse Holdings (SVR) by the Carlyle Group for $2.6 billion or $31.00 per share in cash.
  4. The acquisition of First Mercury Financial Corporation (FMR) by Fairfax Financial for $294 million or $16.50 per share in cash.
  5. The acquisition of Wilber Corporation (GIW) by Community Bank System (CBU) for $101.8 million or $9.50 in stock or cash (80% stock / 20% cash subject to election), based on the following calculation: If the Community Bank System Market Price is equal to or greater than $19.71, or equal to or less than $25.35, then the ratio will be determined by a quotient (rounded to the nearest one-thousandth) obtained by dividing $9.50 by the Community Bank System Market Price. If the Community Bank System Market Price is greater than $25.35, then the quotient is 0.3748. If the Community Bank System Market Price is less than $19.71, then the quotient is 0.4820.


Closed Deals:

  1. The acquisition of Trubion Pharmaceuticals (TRBN) by Emergent BioSolutions on October 29, 2010.
  2. The acquisition of OMNI Energy Services by Wellspring Capital Management on October 25, 2010.


Updates:

The closing date for the McAfee – Intel merger was changed to 6/30/2011 from 12/31/2010, following a comment by the CEO of McAfee (MFE) stating that the deal is “on track” to close by mid-2011.

Top 10 Deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
TLCR06/07/2010Grifols (GRF.MC)$29.41$24.5212/31/2010 19.95% 121.39%
DTG04/26/2010Avis (CAR)$53.39$46.4012/31/2010 15.06% 91.60%
MAJC09/21/2010Bayside Capital Partners (N/A)$0.45$0.39603/31/2011 13.64% 33.18%
SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$6.75$6.0412/31/2010 11.75% 71.51%
AAI09/27/2010Southwest Airlines (LUV)$8.17$7.4003/31/2011 10.36% 25.22%
ATBC05/10/2010Jacksonville Bancorp (JAXB)$2.17$2.03212/31/2010 6.79% 41.31%
MROE10/06/2010Old National Bancorp (ONB)$12.06$11.3403/31/2011 6.36% 15.48%
ADAM08/30/2010Ebix Inc. (EBIX)$7.70$7.2412/31/2010 6.29% 38.29%
CRXL10/06/2010Johnson & Johnson (JNJ)$34.40$32.4003/31/2011 6.17% 15.02%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$26.41$25.1112/31/2010 5.18% 31.52%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.


 SymbolAnnounced
Date
Acquiring
Company
Closing
Value
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.

Profit

+TLCR06/07/2010Grifols (GRF.MC)$3.4 billion$29.42$24.5212/31/2010 19.97% 121.50%
+DTG04/26/2010Avis (CAR)$1.56 billion$53.39$46.4012/31/2010 15.06% 91.60%
+MAJC09/21/2010Bayside Capital Partners (N/A)$7.8 million$0.45$0.39603/31/2011 13.64% 33.18%
+SSE02/23/2010Naugatuck Valley Financial Corp (NVSL)$19.5 million$6.75$6.0412/31/2010 11.75% 71.51%
+AAI09/27/2010Southwest Airlines (LUV)$1.4 billion$8.17$7.4003/31/2011 10.36% 25.22%
+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.17$2.03212/31/2010 6.79% 41.31%
+MROE10/06/2010Old National Bancorp (ONB)$83.5 million$12.06$11.3403/31/2011 6.36% 15.48%
+ADAM08/30/2010Ebix Inc. (EBIX)$66 million$7.70$7.2412/31/2010 6.29% 38.29%
+CRXL10/06/2010Johnson & Johnson (JNJ)$2.41 billion$34.40$32.4003/31/2011 6.17% 15.02%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)$954 million$26.41$25.1112/31/2010 5.18% 31.52%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$24.23$23.2003/31/2011 4.42% 10.76%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$44.63$42.8312/31/2010 4.21% 25.62%
+Q04/22/2010Century Link (CTL)$10.6 billion$6.89$6.6104/21/2011 4.17% 8.90%
+GIW10/25/2010Community Bank System (CBU)$101.8 million$9.50$9.2602/15/2011 2.59% 8.92%
+ID09/20/2010Safran (N/A)$1.1 billion$12.00$11.7903/31/2011 1.78% 4.33%
+OCNW09/16/2010Calix Inc. (CALX)$171 million$7.53$7.4012/31/2010 1.77% 10.76%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.80$11.6012/30/2010 1.72% 10.67%
+SVR10/28/2010Carlyle (N/A)$2.6 billion$31.00$30.4903/31/2011 1.67% 4.07%
+BJGP10/28/2010Sanofi – aventis (N/A)$520.6 million$10.00$9.8403/31/2011 1.63% 3.96%
+MFE08/19/2010Intel Corporation (INTC)$7.68 billion$48.00$47.3006/30/2011 1.48% 2.24%
+NCOC09/28/2010Ranger Energy Investments (N/A)$8.6 million$1.00$0.98612/15/2010 1.42% 11.78%
+NHWK09/27/2010Virtual Radiologic (N/A)$170 million$6.50$6.4103/31/2011 1.40% 3.42%
+DVD09/27/2010)–Dover Downs Gaming & Entertainment Inc (DDE)N/A$1.74$1.719912/31/2010 1.37% 8.34%
+BNE02/23/2010RR Donnelley (RRD)$481 million$11.50$11.3512/31/2010 1.32% 8.04%
+TTES10/06/2010Robbins & Myers Inc. (RBN)$422 million$33.90$33.4712/31/2010 1.29% 7.87%
+FMR10/28/2010Fairfax Financial Holdings (FRFHF.PK)$294 million$16.50$16.3003/31/2011 1.23% 2.99%
+NAL08/19/2010First Niagara Financial Group (FNFG)$1.5 billion$13.04$12.8905/15/2011 1.12% 2.11%
+TUNE09/08/2010Zoran Corporation (ZRAN)$84 million$2.92$2.8912/31/2010 1.04% 6.31%
+CSCX10/19/2010Opto Circuits (N/A)N/A$2.30$2.2812/31/2010 0.88% 5.34%
+HBE10/06/2010Kratos Defense & Security Solutions (KTOS)$45 million$7.00$6.9412/31/2010 0.86% 5.26%
+INET09/20/2010an affiliate of Hellman & Friedman Capital Partners (N/A)$640 million$13.35$13.2412/31/2010 0.83% 5.05%
+KG10/12/2010Pfizer Inc. (PFE)$3.6 billion$14.25$14.1412/31/2010 0.78% 4.73%
+SMTB07/15/2010People's United Financial Inc. (PBCT)$60 million$3.76$3.7312/31/2010 0.77% 4.66%
+PZZ08/16/2010Leonard Green & Partners (N/A)$363 million$8.50$8.4412/31/2010 0.71% 4.32%
+RAE09/20/2010Battery Ventures (N/A)$95 million$1.60$1.5912/31/2010 0.63% 3.83%
+ACTI10/11/2010Assa Abloy (N/A)$162 million$3.25$3.2312/31/2010 0.62% 3.77%
+CLRT10/22/2010GE Healthcare (GE)$580 million$5.00$4.9701/31/2011 0.60% 2.42%
+STU09/17/2010Discover Financial Services (N/A)N/A$30.00$29.8212/31/2010 0.60% 3.67%
+NUHC09/20/2010Arrow Electronics (ARW)$130 million$7.00$6.9612/31/2010 0.57% 3.50%
+ACV09/27/2010Unilever PLC (N/A)$3.7 billion$37.50$37.2912/31/2010 0.56% 3.43%
+GYMB10/11/2010Bain Capital (N/A)$1.8 billion$65.40$65.0612/31/2010 0.52% 3.18%
+DDMX10/01/2010Greenbriar Equity Group (N/A)$210 million$21.25$21.1402/15/2011 0.52% 1.79%
+ALOY06/24/2010ZelnickMedia (N/A)$126.5 million$9.80$9.7512/31/2010 0.51% 3.12%
+AEZ07/28/2010Hess Corp (HES)$450 million$8.65$8.6112/31/2010 0.51% 3.11%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)$74 million$10.97$10.9103/31/2011 0.51% 1.23%
+CLU09/16/2010Clearwater Paper Corporation (CLW)$247 million$12.00$11.9412/31/2010 0.50% 3.06%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.7812/31/2010 0.49% 2.99%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.6912/31/2010 0.47% 2.88%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$10.66$10.6112/31/2010 0.47% 2.84%
+XJT08/04/2010SkyWest (SKYW)$133 million$6.75$6.7212/31/2010 0.45% 2.72%
+EPE09/07/2010Enterprise Products (EPD)$8 billion$64.28$64.0012/31/2010 0.43% 2.61%
+ME04/15/2010Apache (APA)$2.7 billion$25.02$24.9212/31/2010 0.39% 2.36%
+HWK10/15/2010Carlisle (CSL)$413 million$50.00$49.8312/31/2010 0.34% 2.08%
+LSBX07/15/2010People's United Financial Inc. (PBCT)$96 million$21.00$20.93212/31/2010 0.32% 1.98%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.6712/31/2010 0.31% 1.90%
+AMPH09/01/2010ProAssuarance (PRA)$233 million$32.50$32.4012/31/2010 0.31% 1.88%
+PTV08/17/2010Reynolds Group Holdings (N/A)$6 billion$33.25$33.1712/31/2010 0.24% 1.47%
+AGAM10/18/2010St. Jude Medical (STJ)$1.04 billion$20.80$20.7512/31/2010 0.24% 1.47%
+DTPI08/24/2010PricewaterhouseCoopers (N/A)$378 million$12.50$12.4712/31/2010 0.24% 1.46%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$39.36$39.2712/31/2010 0.24% 1.44%
+ROAC10/18/2010Swenson Granite Co. (N/A)$39 million$5.25$5.2403/31/2011 0.19% 0.46%
+OSTE08/17/2010Medtronic (MDT)$123 million$6.50$6.4912/31/2010 0.15% 0.94%
+NZ09/20/2010International Business Machines (IBM)$1.7 billion$27.00$26.9612/31/2010 0.15% 0.90%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$33.7012/31/2010 0.15% 0.90%
+NRGP08/09/2010Inergy (NRGY)$2.07 billion$30.23$30.2012/31/2010 0.10% 0.61%
+KEI09/28/2010Danaher Corporation (DHR)$340 million$21.60$21.5812/31/2010 0.09% 0.56%
+OICO09/14/2010ITT Corporation (ITT)$29 million$12.50$12.4912/31/2010 0.08% 0.49%
+ACTL10/04/2010Microsemi (MSCC)$430 million$20.88$20.8701/02/2011 0.05% 0.28%
+RSCR09/07/2010Onex Corp (N/A)$390 million$13.25$13.2512/31/2010 0.00% 0.00%
+PPCO08/09/2010Endo Pharmaceuticals (ENDP)$144 million$5.00$5.0012/31/2010 0.00% 0.00%
+COGT08/30/20103M Co. (MMM)$943 million$10.50$10.5212/31/2010 -0.19% -1.16%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$19.0712/31/2010 -0.37% -2.23%
+ACLI10/18/2010Affiliates of Platinum Equity (N/A)$777 million$33.00$33.1512/31/2010 -0.45% -2.75%
+CTV10/25/2010Carlyle (N/A)$3 billion$31.50$31.6612/31/2010 -0.51% -3.07%
+THMD10/05/2010Irving Place Capital (N/A)$422 million$15.00$15.0812/31/2010 -0.53% -3.23%
+CGC10/01/2010Gammon Gold (GRS)$288 million$4.35$4.3912/31/2010 -0.96% -5.86%
+SHMR10/15/2010Essilor (N/A)$130 million$14.50$14.6906/30/2011 -1.29% -1.96%
+NST10/18/2010Northeast Utilities (NU)$4.17 billion$41.04$41.7109/30/2011 -1.61% -1.76%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$4.6412/31/2010 -3.02% -18.35%
+ULCM10/12/2010affiliates of Platinum Equity (N/A)N/A$8.07$8.4912/31/2010 -4.95% -30.09%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$4.1012/31/2010 -6.10% -37.09%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$4.1012/31/2010 -6.10% -37.09%
+CADE10/06/2010Community Bancorp LLC (N/A)$38 million$2.25$2.4603/31/2011 -8.68% -21.12%
+ALY08/12/2010Seawell (N/A)$890 million$4.25$5.1412/31/2010 -17.32% -105.33%
+OTIX09/13/2010William Demant (N/A)$50 million$8.60$10.9512/31/2010 -21.46% -130.56%


Voluntary Disclosure: I have a long position in AAI and a short position in LUV. I also have a long position in FNFG.

Contributing Author: Ann Kumar