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Merger Arbitrage Mondays – November 22, 2010

  • November 22, 2010

Merger activity increased last week with five new deals being announced and eight deals 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 2010109
Total Number of Deals That Did Not Complete in 20106
Total Number of Pending Deals
Cash Deals58
Stock Deals16
Stock & Cash Deals10
Total Number of Pending Deals84

New Deals:

  1. The acquisition of Bucyrus International (BUCY) by Caterpillar (CAT) for $8.6 billion or $92 per share in cash
  2. The acquisition of Isilon Systems (ISLN) by EMC Corporation (EMC) for $2.25 billion or $33.85 per share in cash
  3. The acquisition of Ladish Co (LDSH) by Allegheny Technologies (ATI) for $778 million or  $24 in cash and 0.4556 share of Allegheny stock in a cash plus stock deal
  4. The acquisition of Hypercom Corporation (HYC) by Verifone Systems (PAY) for $485 million or 0.23 shares of VeriFone in an all-stock deal
  5. The acquisition of LTX – Credence Corporation (LTXC) by Verigy Ltd (VRGY) for $422 million or 0.96 shares of Verigy in an all-stock deal


Deal Updates:

  1. Buckeye GP Holdings L.P. (BGH) announced that their respective unitholders have approved their proposed merger
  2. Phoenix Technologies Ltd.(PTEC) announced that at a special meeting, the Phoenix stockholders approved the Company’s merger with Pharaoh Merger Sub Corp


Closed Deals:

  1. The acquisition of ExpressJet Holdings (XJT) by Skywest (SKYW) on November 15, 2010
  2. The acquisition of O.I. Corporation (OICO) by ITT Corporation (ITT) on November 16, 2010
  3. The acquisition of Psychiatric Solutions (PSYS) by Universal Health Services (UHS) on November 16, 2010
  4. The acquisition of Osteotech (OSTE) by Medtronic (MDT) on November 16, 2010
  5. The acquisition of Pactiv Corporation (PTV) by Reynold Group Holdings Limited on November 16, 2010
  6. The acquisition of Atlantic Bancorp (ATBC) by Jacksonville Bancorp (JAXB) on November 17, 2010. Interestingly the spread on this deal even last Monday was 5.21%.
  7. The acquisition of Wainwright Bank & Trust Company (WAIN) by Eastern Bank Corporation on November 17, 2010
  8. The acquisition of AGA Medical Holdings (AGAM) by St. Jude Medical Inc. (STJ) on November 19, 2010


Top 10 Deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
TLCR06/07/2010Grifols (GRF.MC)$27.47$22.0403/31/2011 24.63% 69.70%
DTG04/26/2010Avis (CAR)$54.36$46.6612/31/2010 16.51% 154.47%
HYC11/17/2010Verifone Systems (PAY)$7.78$7.2409/30/2011 7.41% 8.67%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$26.88$25.0412/31/2010 7.35% 68.82%
MROE10/06/2010Old National Bancorp (ONB)$12.72$11.9003/31/2011 6.93% 19.60%
MAJCD09/21/2010Bayside Capital Partners (N/A)$4.50$4.2503/31/2011 5.88% 16.64%
PNNW11/12/2010City of Nashua (N/A)$29.00$27.4509/30/2011 5.65% 6.61%
ADAM08/30/2010Ebix Inc. (EBIX)$6.76$6.4412/31/2010 4.91% 45.92%
CRXL10/06/2010Johnson & Johnson (JNJ)$34.40$32.8103/31/2011 4.85% 13.71%
AAI09/27/2010Southwest Airlines (LUV)$7.75$7.4503/31/2011 4.03% 11.39%

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$27.46$22.0403/31/2011 24.57% 69.53%
+DTG04/26/2010Avis (CAR)$1.56 billion$54.36$46.6612/31/2010 16.51% 154.47%
+HYC11/17/2010Verifone Systems (PAY)$485 million$7.78$7.2409/30/2011 7.41% 8.67%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)$954 million$26.88$25.0412/31/2010 7.35% 68.82%
+MROE10/06/2010Old National Bancorp (ONB)$83.5 million$12.72$11.9003/31/2011 6.93% 19.60%
+MAJCD09/21/2010Bayside Capital Partners (N/A)$7.8 million$4.50$4.2503/31/2011 5.88% 16.64%
+PNNW11/12/2010City of Nashua (N/A)$138 million$29.00$27.4509/30/2011 5.65% 6.61%
+ADAM08/30/2010Ebix Inc. (EBIX)$66 million$6.76$6.4412/31/2010 4.91% 45.92%
+CRXL10/06/2010Johnson & Johnson (JNJ)$2.41 billion$34.40$32.8103/31/2011 4.85% 13.71%
+AAI09/27/2010Southwest Airlines (LUV)$1.4 billion$7.75$7.4503/31/2011 4.03% 11.39%
+SHMR10/15/2010Essilor (N/A)$130 million$14.50$13.9606/30/2011 3.87% 6.42%
+TCM11/01/2010Hanmax Investment Limited (N/A)N/A$4.50$4.3403/31/2011 3.69% 10.43%
+OPTC11/11/2010TKH Group (N/A)N/A$2.45$2.3703/31/2011 3.38% 9.55%
+MCCC11/15/2010Chief Executive Rocco Commisso (N/A)$600 million$8.75$8.4706/30/2011 3.31% 5.48%
+VCGH11/10/2010Company's chairman of the Board, CEO, President and COO (N/A)$37 million$2.25$2.1803/31/2011 3.21% 9.09%
+BUCY11/15/2010Caterpillar Inc (CAT)$8.6 billion$92.00$89.2006/30/2011 3.14% 5.21%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$24.18$23.5503/31/2011 2.67% 7.55%
+LTXC11/18/2010Verigy Ltd (VRGY)$422 million$7.81$7.6106/30/2011 2.59% 4.30%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.80$11.5212/30/2010 2.43% 23.35%
+Q04/22/2010Century Link (CTL)$10.6 billion$7.08$6.9304/21/2011 2.22% 5.40%
+NAL08/19/2010First Niagara Financial Group (FNFG)$1.5 billion$13.54$13.2505/15/2011 2.20% 4.61%
+MFE08/19/2010Intel Corporation (INTC)$7.68 billion$48.00$46.9906/30/2011 2.15% 3.57%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$41.99$41.1412/31/2010 2.06% 19.31%
+BJGP10/28/2010Sanofi – aventis (N/A)$520.6 million$10.00$9.8003/31/2011 2.04% 5.77%
+GIW10/25/2010Community Bank System (CBU)$101.8 million$9.50$9.3302/15/2011 1.82% 7.82%
+OCNW09/16/2010Calix Inc. (CALX)$171 million$7.59$7.4612/31/2010 1.77% 16.60%
+ID09/20/2010Safran (N/A)$1.1 billion$12.00$11.8003/31/2011 1.69% 4.80%
+LDSH11/17/2010Allegheny Technologies (ATI)$778 million$46.78$46.1203/31/2011 1.44% 4.08%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)$74 million$11.24$11.1003/31/2011 1.28% 3.63%
+SMTB07/15/2010People's United Financial Inc. (PBCT)$60 million$3.79$3.7512/31/2010 1.15% 10.79%
+BNE02/23/2010RR Donnelley (RRD)$481 million$11.50$11.3712/31/2010 1.14% 10.70%
+SVR10/28/2010Carlyle (N/A)$2.6 billion$31.00$30.6503/31/2011 1.14% 3.23%
+FMR10/28/2010Fairfax Financial Holdings (FRFHF.PK)$294 million$16.50$16.3203/31/2011 1.10% 3.12%
+NHWK09/27/2010Virtual Radiologic (N/A)$170 million$6.50$6.4303/31/2011 1.09% 3.08%
+MIR04/12/2010RRI Energy In. (RRI)$1.6 billion$10.60$10.4912/31/2010 1.08% 10.07%
+ARTG11/02/2010Oracle (ORCL)$1 billion$6.00$5.9403/31/2011 1.01% 2.86%
+NCOC09/28/2010Ranger Energy Investments (N/A)$8.6 million$1.00$0.990212/15/2010 0.99% 15.71%
+TTES10/06/2010Robbins & Myers Inc. (RBN)$422 million$34.79$34.4812/31/2010 0.89% 8.36%
+CSCX10/19/2010Opto Circuits (N/A)N/A$2.30$2.2812/31/2010 0.88% 8.21%
+KG10/12/2010Pfizer Inc. (PFE)$3.6 billion$14.25$14.1312/31/2010 0.85% 7.95%
+CFS11/02/2010affiliate of ABRY Partners (N/A)$84.8 million$2.50$2.4812/31/2010 0.81% 7.55%
+DDMX10/01/2010Greenbriar Equity Group (N/A)$210 million$21.25$21.0902/15/2011 0.76% 3.26%
+ACV09/27/2010Unilever PLC (N/A)$3.7 billion$37.50$37.2312/31/2010 0.73% 6.79%
+PZZ08/16/2010Leonard Green & Partners (N/A)$363 million$8.50$8.4412/31/2010 0.71% 6.65%
+ROAC10/18/2010Swenson Granite Co. (N/A)$39 million$5.25$5.2203/31/2011 0.57% 1.63%
+NUHC09/20/2010Arrow Electronics (ARW)$130 million$7.00$6.9612/31/2010 0.57% 5.38%
+TEAM11/02/2010fanini International Holdings Ltd for $93.4 million (N/A)$93.4 million$8.35$8.3112/31/2010 0.48% 4.50%
+LSBX07/15/2010People's United Financial Inc. (PBCT)$96 million$21.00$20.9012/31/2010 0.48% 4.48%
+CLU09/16/2010Clearwater Paper Corporation (CLW)$247 million$12.00$11.9512/31/2010 0.42% 3.92%
+CLRT10/22/2010GE Healthcare (GE)$580 million$5.00$4.9801/31/2011 0.40% 2.09%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.7012/31/2010 0.39% 3.68%
+INET09/20/2010an affiliate of Hellman & Friedman Capital Partners (N/A)$640 million$13.35$13.3012/31/2010 0.38% 3.52%
+TUNE09/08/2010Zoran Corporation (ZRAN)$84 million$2.92$2.9112/31/2010 0.34% 3.22%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.8612/31/2010 0.31% 2.92%
+THMD10/05/2010Irving Place Capital (N/A)$422 million$15.00$14.9612/31/2010 0.27% 2.50%
+ISLN11/15/2010EMC Corporation (EMC)$2.25 billion$33.85$33.7612/31/2010 0.27% 2.49%
+ULCM10/12/2010affiliates of Platinum Equity (N/A)N/A$8.07$8.0512/31/2010 0.25% 2.33%
+KEI09/28/2010Danaher Corporation (DHR)$340 million$21.60$21.5612/31/2010 0.19% 1.74%
+STU09/17/2010Discover Financial Services (N/A)N/A$30.00$29.9512/31/2010 0.17% 1.56%
+HWK10/15/2010Carlisle (CSL)$413 million$50.00$49.9212/31/2010 0.16% 1.50%
+AMPH09/01/2010ProAssuarance (PRA)$233 million$32.50$32.4612/31/2010 0.12% 1.15%
+GYMB10/11/2010Bain Capital (N/A)$1.8 billion$65.40$65.3212/31/2010 0.12% 1.15%
+NYM07/15/2010ProSight (N/A)$230 million$25.75$25.7312/31/2010 0.08% 0.73%
+AEZ07/28/2010Hess Corp (HES)$450 million$9.67$9.6612/31/2010 0.06% 0.57%
+EPE09/07/2010Enterprise Products (EPD)$8 billion$64.01$63.9812/31/2010 0.04% 0.37%
+BGH06/11/2010Buckeye Partners LP (BPL)$1.14 billion$47.08$47.0712/31/2010 0.02% 0.20%
+RSCR09/07/2010Onex Corp (N/A)$390 million$13.25$13.2512/31/2010 0.00% 0.00%
+ACTI10/11/2010Assa Abloy (N/A)$162 million$3.25$3.2512/31/2010 0.00% 0.00%
+COGT08/30/20103M Co. (MMM)$943 million$10.50$10.5012/31/2010 0.00% 0.00%
+ATLS11/09/2010Chevron Coproation (CVX)$4.3 billion$43.34$43.5803/31/2011 -0.55% -1.56%
+DVD09/27/2010Dover Downs Gaming & Entertainment Inc (DDE)N/A$1.73$1.7512/31/2010 -0.95% -8.85%
+ACLI10/18/2010Affiliates of Platinum Equity (N/A)$777 million$33.00$33.3412/31/2010 -1.02% -9.54%
+NST10/18/2010Northeast Utilities (NU)$4.17 billion$41.24$41.7409/30/2011 -1.21% -1.41%
+CTV10/25/2010Carlyle (N/A)$3 billion$31.50$31.9903/31/2011 -1.53% -4.33%
+CGC10/01/2010Gammon Gold (GRS)$288 million$4.26$4.3312/31/2010 -1.64% -15.30%
+RAE09/20/2010Battery Ventures (N/A)$95 million$1.60$1.6312/31/2010 -1.84% -17.23%
+WL11/01/2010M & T Bank Corporation (MTB)$351 million$4.00$4.2306/30/2011 -5.51% -9.15%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$4.1812/31/2010 -7.89% -73.89%
+PTEC08/17/2010Marlin Equity Partners (N/A)$139 million$3.85$4.1812/31/2010 -7.89% -73.89%
+CADE10/06/2010Community Bancorp LLC (N/A)$38 million$2.25$2.4603/31/2011 -8.68% -24.55%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$5.1112/31/2010 -11.94% -111.72%
+HBE10/06/2010Kratos Defense & Security Solutions (KTOS)$45 million$7.00$8.4412/31/2010 -17.06% -159.68%
+OTIX09/13/2010William Demant (N/A)$50 million$8.60$10.9812/31/2010 -21.68% -202.86%
+ALY08/12/2010Seawell (N/A)$890 million$4.25$6.2912/31/2010 -32.43% -303.53%

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