Merger Arbitrage Mondays – November 15, 2010

  • November 15, 2010

Merger Activity decreased slightly last week with four new deals being 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 2010101
Total Number of Deals That Did Not Complete in 20107
Total Number of Pending Deals
Cash Deals61
Stock Deals14
Stock & Cash Deals11
Total Number of Pending Deals86

New Deals:

  1. The acquisition of Atlas Energy (ATLS) by Chevron Corporation (CVX) for $4.3 billion or $43.34. Shareholders will receive $38.25 in cash and and a pro-rata share of a distribution of over 41 million units of Atlas Pipeline Holdings for each share held. Based on Atlas Pipeline Holdings’ closing price on November 8, these units have a value of $5.09 per Atlas Energy share.
  2. The acquisition of VCG Holdings Corporation (VCGH) by the Company’s CEO Troy Lowrie and the President Micheal Ocello for $37 million or $2.25 per share in cash.
  3. The acquisition of Optelecom – NKF (OPTC) by the TKH Group for $2.45 per share in cash.
  4. The acquisition of Pennichuck Corporation (PNNW) by the City of Nashua, New Hampshire for $138 million or $29.00 per share in cash.


Deal Updates:

  1. Naugatuck Valley Financial Coropration (NVSL) and Southern Connecticut Bancorp (SSE) mutually agree to terminate merger agreement.
  2. U.S. antitrust regulators might seeks to block the Grifols SA’s purchase of Talecris (TLCR). The deal is now expected to close by “early 2011”. We will shortly update the Merger Arbitrage tool to reflect an expected completion date of 3/31/2011.

Closed Deals:

  1. The acquisition of Alloy Inc (ALOY) by ZelnickMedia on November 09, 2010
  2. The acquisition of Mariner Energy (ME) by Apache Corp (APA) on November 10, 2010
  3. The acquisition of Netezza Corporation (NZ) by International Business Machines (IBM) on Novemer 11, 2010
  4. The acquisition of Inergy Holdings (NRGP) by Inergy (NRGY)


Top 10 Deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
TLCR06/07/2010Grifols (GRF.MC)$27.67$23.0712/31/201019.95%53.54%
DTG04/26/2010Avis (CAR)$54.68$46.3412/31/201018.00%142.84%
CRXL10/06/2010Johnson & Johnson (JNJ)$34.40$31.7103/31/20118.48%22.77%
MROE10/06/2010Old National Bancorp (ONB)$12.70$11.80503/31/20117.57%20.32%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$27.46$26.0112/31/20105.57%44.22%
PNNW11/12/2010City of Nashua (N/A)$29.00$27.5209/30/20115.38%6.15%
ATBC05/10/2010Jacksonville Bancorp (JAXB)$2.22$2.110112/31/20105.21%41.33%
MAJCD09/21/2010Bayside Capital Partners (N/A)$4.50$4.300103/31/20114.65%12.48%
AAI09/27/2010Southwest Airlines (LUV)$7.75$7.4103/31/20114.59%12.31%
OICO09/14/2010ITT Corporation (ITT)$12.50$11.9712/31/20104.43%35.13%

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$27.72$23.0003/31/2011 20.53% 55.10%
+DTG04/26/2010Avis (CAR)$1.56 billion$54.87$46.3612/31/2010 18.35% 145.57%
+MROE10/06/2010Old National Bancorp (ONB)$83.5 million$12.80$11.8203/31/2011 8.30% 22.27%
+CRXL10/06/2010Johnson & Johnson (JNJ)$2.41 billion$34.40$32.0803/31/2011 7.23% 19.41%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)$954 million$27.48$25.9212/31/2010 6.02% 47.73%
+PNNW11/12/2010City of Nashua (N/A)$138 million$29.00$27.3909/30/2011 5.88% 6.73%
+ATBC05/10/2010Jacksonville Bancorp (JAXB)N/A$2.22$2.110112/31/2010 5.21% 41.33%
+MAJCD09/21/2010Bayside Capital Partners (N/A)$7.8 million$4.50$4.300103/31/2011 4.65% 12.48%
+SHMR10/15/2010Essilor (N/A)$130 million$14.50$13.8706/30/2011 4.54% 7.30%
+AAI09/27/2010Southwest Airlines (LUV)$1.4 billion$7.75$7.4203/31/2011 4.45% 11.94%
+OICO09/14/2010ITT Corporation (ITT)$29 million$12.50$11.9712/31/2010 4.43% 35.13%
+ADAM08/30/2010Ebix Inc. (EBIX)$66 million$6.52$6.2612/31/2010 4.18% 33.19%
+VCGH11/10/2010Company's chairman of the Board, CEO, President and COO (N/A)$37 million$2.25$2.1603/31/2011 4.17% 11.18%
+TCM11/01/2010Hanmax Investment Limited (N/A)N/A$4.50$4.3603/31/2011 3.21% 8.62%
+Q04/22/2010Century Link (CTL)$10.6 billion$7.02$6.8104/21/2011 3.11% 7.24%
+SMTB07/15/2010People's United Financial Inc. (PBCT)$60 million$3.82$3.711912/31/2010 2.81% 22.27%
+NAL08/19/2010First Niagara Financial Group (FNFG)$1.5 billion$13.72$13.373705/15/2011 2.57% 5.18%
+BUCY11/15/2010Caterpillar Inc (CAT)$8.6 billion$92.00$89.7306/30/2011 2.53% 4.07%
+OPTC11/11/2010TKH Group (N/A)N/A$2.45$2.3903/31/2011 2.51% 6.74%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)$74 million$11.18$10.9203/31/2011 2.38% 6.40%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$23.79$23.2603/31/2011 2.26% 6.06%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$41.82$40.9112/31/2010 2.21% 17.57%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.80$11.5612/30/2010 2.08% 16.84%
+BJGP10/28/2010Sanofi – aventis (N/A)$520.6 million$10.00$9.8003/31/2011 2.04% 5.48%
+SVR10/28/2010Carlyle (N/A)$2.6 billion$31.00$30.3903/31/2011 2.01% 5.39%
+ID09/20/2010Safran (N/A)$1.1 billion$12.00$11.8003/31/2011 1.69% 4.55%
+OCNW09/16/2010Calix Inc. (CALX)$171 million$7.47$7.350312/31/2010 1.66% 13.18%
+MFE08/19/2010Intel Corporation (INTC)$7.68 billion$48.00$47.3206/30/2011 1.44% 2.31%
+FMR10/28/2010Fairfax Financial Holdings (FRFHF.PK)$294 million$16.50$16.2903/31/2011 1.29% 3.46%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$48.14$47.5912/31/2010 1.17% 9.24%
+TTES10/06/2010Robbins & Myers Inc. (RBN)$422 million$34.35$33.99412/31/2010 1.05% 8.31%
+TUNE09/08/2010Zoran Corporation (ZRAN)$84 million$2.92$2.8912/31/2010 1.04% 8.24%
+NCOC09/28/2010Ranger Energy Investments (N/A)$8.6 million$1.00$0.9912/15/2010 1.01% 12.29%
+ROAC10/18/2010Swenson Granite Co. (N/A)$39 million$5.25$5.2003/31/2011 0.96% 2.58%
+NHWK09/27/2010Virtual Radiologic (N/A)$170 million$6.50$6.4403/31/2011 0.93% 2.50%
+CSCX10/19/2010Opto Circuits (N/A)N/A$2.30$2.2812/31/2010 0.88% 6.96%
+ULCM10/12/2010affiliates of Platinum Equity (N/A)N/A$8.07$8.0012/31/2010 0.88% 6.94%
+LSBX07/15/2010People's United Financial Inc. (PBCT)$96 million$21.00$20.8312/31/2010 0.82% 6.48%
+CFS11/02/2010affiliate of ABRY Partners (N/A)$84.8 million$2.50$2.4812/31/2010 0.81% 6.40%
+ARTG11/02/2010Oracle (ORCL)$1 billion$6.00$5.95503/31/2011 0.76% 2.03%
+AEZ07/28/2010Hess Corp (HES)$450 million$9.59$9.5212/31/2010 0.75% 5.98%
+TEAM11/02/2010fanini International Holdings Ltd for $93.4 million (N/A)$93.4 million$8.35$8.2912/31/2010 0.72% 5.74%
+ACV09/27/2010Unilever PLC (N/A)$3.7 billion$37.50$37.23512/31/2010 0.71% 5.65%
+PZZ08/16/2010Leonard Green & Partners (N/A)$363 million$8.50$8.4412/31/2010 0.71% 5.64%
+BNE02/23/2010RR Donnelley (RRD)$481 million$11.50$11.4212/31/2010 0.70% 5.56%
+DDMX10/01/2010Greenbriar Equity Group (N/A)$210 million$21.25$21.10502/15/2011 0.69% 2.73%
+KG10/12/2010Pfizer Inc. (PFE)$3.6 billion$14.25$14.15512/31/2010 0.67% 5.33%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.7112/31/2010 0.65% 5.15%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.670112/31/2010 0.63% 5.00%
+NUHC09/20/2010Arrow Electronics (ARW)$130 million$7.00$6.9612/31/2010 0.57% 4.56%
+STU09/17/2010Discover Financial Services (N/A)N/A$30.00$29.8312/31/2010 0.57% 4.52%
+GIW10/25/2010Community Bank System (CBU)$101.8 million$9.50$9.4502/15/2011 0.53% 2.10%
+WAIN06/29/2010Eastern Bank (N/A)$163 million$19.00$18.90812/31/2010 0.49% 3.86%
+INET09/20/2010an affiliate of Hellman & Friedman Capital Partners (N/A)$640 million$13.35$13.2912/31/2010 0.45% 3.58%
+EPE09/07/2010Enterprise Products (EPD)$8 billion$65.09$64.8512/31/2010 0.36% 2.88%
+ACTI10/11/2010Assa Abloy (N/A)$162 million$3.25$3.2412/31/2010 0.31% 2.45%
+CLRT10/22/2010GE Healthcare (GE)$580 million$5.00$4.98501/31/2011 0.30% 1.43%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.6812/31/2010 0.27% 2.16%
+HWK10/15/2010Carlisle (CSL)$413 million$50.00$49.8712/31/2010 0.26% 2.07%
+CLU09/16/2010Clearwater Paper Corporation (CLW)$247 million$12.00$11.9712/31/2010 0.25% 1.99%
+KEI09/28/2010Danaher Corporation (DHR)$340 million$21.60$21.5512/31/2010 0.23% 1.84%
+AMPH09/01/2010ProAssuarance (PRA)$233 million$32.50$32.42512/31/2010 0.23% 1.84%
+THMD10/05/2010Irving Place Capital (N/A)$422 million$15.00$14.9712/31/2010 0.20% 1.59%
+GYMB10/11/2010Bain Capital (N/A)$1.8 billion$65.40$65.27112/31/2010 0.20% 1.57%
+PSYS05/17/2010Universal Health (N/A)$3.1 billion$33.75$33.6912/31/2010 0.18% 1.41%
+XJT08/04/2010SkyWest (SKYW)$133 million$6.75$6.7412/31/2010 0.15% 1.18%
+COGT08/30/20103M Co. (MMM)$943 million$10.50$10.4912/31/2010 0.10% 0.76%
+PTV08/17/2010Reynolds Group Holdings (N/A)$6 billion$33.25$33.2212/31/2010 0.09% 0.72%
+RSCR09/07/2010Onex Corp (N/A)$390 million$13.25$13.2412/31/2010 0.08% 0.60%
+OSTE08/17/2010Medtronic (MDT)$123 million$6.50$6.5012/31/2010 0.00% 0.00%
+AGAM10/18/2010St. Jude Medical (STJ)$1.04 billion$20.80$20.8012/31/2010 0.00% 0.00%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$10.66$10.6812/31/2010 -0.19% -1.52%
+ACLI10/18/2010Affiliates of Platinum Equity (N/A)$777 million$33.00$33.3212/31/2010 -0.96% -7.62%
+NST10/18/2010Northeast Utilities (NU)$4.17 billion$41.37$41.8809/30/2011 -1.22% -1.40%
+CTV10/25/2010Carlyle (N/A)$3 billion$31.50$32.0003/31/2011 -1.56% -4.19%
+ATLS11/09/2010Chevron Coproation (CVX)$4.3 billion$43.34$44.0603/31/2011 -1.63% -4.39%
+RAE09/20/2010Battery Ventures (N/A)$95 million$1.60$1.6312/31/2010 -1.84% -14.60%
+WL11/01/2010M & T Bank Corporation (MTB)$351 million$4.19$4.3206/30/2011 -2.96% -4.77%
+DVD09/27/2010)–Dover Downs Gaming & Entertainment Inc (DDE)N/A$1.72$1.8012/31/2010 -4.53% -35.96%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$4.7712/31/2010 -5.66% -44.91%
+CGC10/01/2010Gammon Gold (GRS)$288 million$4.15$4.4012/31/2010 -5.69% -45.12%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$4.1812/31/2010 -7.89% -62.64%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$4.1812/31/2010 -7.89% -62.64%
+CADE10/06/2010Community Bancorp LLC (N/A)$38 million$2.25$2.4503/31/2011 -8.31% -22.29%
+HBE10/06/2010Kratos Defense & Security Solutions (KTOS)$45 million$7.00$8.2312/31/2010 -14.95% -118.59%
+OTIX09/13/2010William Demant (N/A)$50 million$8.60$10.9512/31/2010 -21.46% -170.29%
+ALY08/12/2010Seawell (N/A)$890 million$4.25$5.8012/31/2010 -26.72% -212.05%

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