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Merger Arbitrage Mondays – December 06, 2010

  • December 6, 2010

Merger activity remained steady last week with four new deals being announced and eleven 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 2010126
Total Number of Deals That Did Not Complete in 20106
Total Number of Pending Deals
Cash Deals52
Stock Deals13
Stock & Cash Deals9
Total Number of Pending Deals74

New Deals:

  1. The acquisition of Voltaire Limited (VOLT) by Mellanox Technologies, Ltd. (MLNX) for $176 million or $8.75 per share in cash.
  2. The acquisition of Baldor Electric Co. (BEZ) by ABB Ltd. (ABB) for $4.2 billion or $63.50 per share in cash.
  3. The acquisition of  Mercer Insurance Group (MIGP) by United Fire & Casualty (UFCS) for $191 million or $28.25 per share in cash.
  4. The acquisition of  Eurand N.V. (EURX) by Axcan Holdings, Inc. for $583 million or $12.00 per share in cash.


Closed Deals:

  1. The acquisition of American Physicians Service Group (AMPH) by ProAssuarance (PRA) on November 30, 2010
  2. The acquisition of OTIX Global Inc. (OTIX) by William Demant on November 30, 2010
  3. The acquisition of LSB Corporation (LSBX) by People’s United Financial Inc. (PBCT) on December 01, 2010
  4. The acquisition of Smithtown Bancorp Inc (SMTB) by People’s United Financial Inc. (PBCT) on December 01, 2010
  5. The acquisition of Microtune Inc. (TUNE) by Zoran Corporation (ZRAN) on December 01, 2010
  6. The acquisition of Hawk Corporation (HWK) by Carlisle (CSL) on December 01, 2010
  7. The acquisition of Cardiac Science Corporation (CSCX) by Opto Circuits on December 01, 2010
  8. The acquisition of Cogent Inc. (COGT) by 3M Co. (MMM) on December 02, 2010
  9. The acquisition of Ulticom Inc. (ULCM) by Affiliates of Platinum Equity on December 03, 2010
  10. The acquisition of Thermadyne Holdings Corporation (THMD) by Irving Place Capital on December 03, 2010
  11. The acquisition of Mirant Corp (MIR) by RRI Energy (RRI) on December 03, 2010


Top 10 Deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnu.

Profit

TLCR06/07/2010Grifols (GRF.MC)$27.65$22.5103/31/201122.85%72.53%
DTG04/26/2010Avis (CAR)$55.30$47.1312/31/201017.34%253.20%
MROE10/06/2010Old National Bancorp (ONB)$14.09$12.9603/31/20118.71%27.64%
MAJCD09/21/2010Bayside Capital Partners (N/A)$4.50$4.2103/31/20116.89%21.86%
HYC11/17/2010Verifone Systems (PAY)$9.17$8.6009/30/20116.63%8.12%
SHMR10/15/2010Essilor (N/A)$14.50$13.7206/30/20115.69%10.07%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$27.96$26.4712/31/20105.63%82.15%
PNNW11/12/2010City of Nashua (N/A)$29.00$27.5509/30/20115.26%6.45%
ADAM08/30/2010Ebix Inc. (EBIX)$6.81$6.5512/31/20103.96%57.75%
AAI09/27/2010Southwest Airlines (LUV)$7.75$7.4603/31/20113.89%12.34%

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$27.65$22.5103/31/201122.85%72.53%
+DTG04/26/2010Avis (CAR)$1.56 billion$55.30$47.1312/31/201017.34%253.20%
+MROE10/06/2010Old National Bancorp (ONB)$83.5 million$14.09$12.9603/31/20118.71%27.64%
+MAJCD09/21/2010Bayside Capital Partners (N/A)$7.8 million$4.50$4.2103/31/20116.89%21.86%
+HYC11/17/2010Verifone Systems (PAY)$485 million$9.17$8.6009/30/20116.63%8.12%
+SHMR10/15/2010Essilor (N/A)$130 million$14.50$13.7206/30/20115.69%10.07%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)$954 million$27.96$26.4712/31/20105.63%82.15%
+PNNW11/12/2010City of Nashua (N/A)$138 million$29.00$27.5509/30/20115.26%6.45%
+ADAM08/30/2010Ebix Inc. (EBIX)$66 million$6.81$6.5512/31/20103.96%57.75%
+AAI09/27/2010Southwest Airlines (LUV)$1.4 billion$7.75$7.4603/31/20113.89%12.34%
+LTXC11/18/2010Verigy Ltd (VRGY)$422 million$8.77$8.4506/30/20113.84%6.80%
+TCM11/01/2010Hanmax Investment Limited (N/A)N/A$4.50$4.3503/31/20113.45%10.94%
+OPTC11/11/2010TKH Group (N/A)N/A$2.45$2.3703/31/20113.38%10.71%
+CRXL10/06/2010Johnson & Johnson (JNJ)$2.41 billion$32.88$31.8303/31/20113.30%10.47%
+BUCY11/15/2010Caterpillar Inc (CAT)$8.6 billion$92.00$89.2506/30/20113.08%5.46%
+MCCC11/15/2010Chief Executive Rocco Commisso (N/A)$600 million$8.75$8.5006/30/20112.94%5.21%
+NOVL11/22/2010Attachment Corporation (N/A)$2.2 billion$6.10$5.9403/31/20112.69%8.55%
+NAL08/19/2010First Niagara Financial Group (FNFG)$1.5 billion$14.28$13.9505/15/20112.35%5.36%
+MFE08/19/2010Intel Corporation (INTC)$7.68 billion$48.00$46.9106/30/20112.32%4.12%
+VCGH11/10/2010Company’s chairman of the Board, CEO, President and COO (N/A)$37 million$2.25$2.2003/31/20112.27%7.21%
+AYE02/11/2010FirstEnergy (FE)$8.5 billion$23.77$23.2403/31/20112.26%7.17%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)$74 million$11.60$11.3703/31/20112.06%6.55%
+GIW10/25/2010Community Bank System (CBU)$101.8 million$9.50$9.3102/15/20112.04%10.49%
+OCNW09/16/2010Calix Inc. (CALX)$171 million$8.29$8.1312/31/20101.95%28.46%
+PRPX02/17/2010L.B. Foster Co. (FSTR)$112 million$11.80$11.5812/30/20101.90%28.89%
+WL11/01/2010M & T Bank Corporation (MTB)$351 million$4.15$4.0806/30/20111.81%3.21%
+Q04/22/2010Century Link (CTL)$10.6 billion$7.23$7.1204/21/20111.50%4.02%
+EURX12/01/2010Axcan Holdings, Inc. (N/A)$583 million$12.00$11.8306/30/20111.44%2.55%
+BJGP10/28/2010Sanofi – aventis (N/A)$520.6 million$10.00$9.8603/31/20111.42%4.51%
+DLM11/25/2010Kohlberg Kravis Roberts & Co (KKR)$4 billion$19.00$18.7403/31/20111.39%4.40%
+ID09/20/2010Safran (N/A)$1.1 billion$12.00$11.8403/31/20111.35%4.29%
+LDSH11/17/2010Allegheny Technologies (ATI)$778 million$48.77$48.1703/31/20111.24%3.93%
+MIGP12/01/2010United Fire & Casualty (UFCS)$191 million$28.25$27.9403/31/20111.11%3.52%
+CPII11/26/2010Veritas Capital (N/A)$525 million$19.50$19.3012/31/20691.04%0.02%
+SVR10/28/2010Carlyle (N/A)$2.6 billion$31.00$30.7403/31/20110.85%2.68%
+VOLT11/29/2010Mellanox Technologies, Ltd. (MLNX)$176 million$8.75$8.6803/31/20110.81%2.56%
+CFS11/02/2010affiliate of ABRY Partners (N/A)$84.8 million$2.50$2.4812/31/20100.81%11.77%
+CGC10/01/2010Gammon Gold (GRS)$288 million$4.85$4.8112/31/20100.79%11.48%
+MAM03/12/2010Emera Inc (N/A)$75.7 million$45.00$44.6512/31/20100.78%11.44%
+CCBP08/09/2010F.N.B. Corporation (FNB)$70 million$42.16$41.8812/31/20100.67%9.81%
+NHWK09/27/2010Virtual Radiologic (N/A)$170 million$6.50$6.4603/31/20110.62%1.97%
+ACV09/27/2010Unilever PLC (N/A)$3.7 billion$37.50$37.2812/31/20100.59%8.62%
+FMR10/28/2010Fairfax Financial Holdings (FRFHF.PK)$294 million$16.50$16.4103/31/20110.55%1.74%
+NUHC09/20/2010Arrow Electronics (ARW)$130 million$7.00$6.9712/31/20100.43%6.28%
+TTES10/06/2010Robbins & Myers Inc. (RBN)$422 million$37.42$37.2612/31/20100.42%6.12%
+ROAC10/18/2010Swenson Granite Co. (N/A)$39 million$5.25$5.2303/31/20110.38%1.21%
+BEZ11/29/2010ABB Ltd (ABB)$4.2 billion$63.50$63.2603/31/20110.38%1.20%
+ARTG11/02/2010Oracle (ORCL)$1 billion$6.00$5.9803/31/20110.33%1.06%
+ACTI10/11/2010Assa Abloy (N/A)$162 million$3.25$3.2412/31/20100.31%4.51%
+KG10/12/2010Pfizer Inc. (PFE)$3.6 billion$14.25$14.2112/31/20100.28%4.11%
+ISLN11/15/2010EMC Corporation (EMC)$2.25 billion$33.85$33.7612/31/20100.27%3.89%
+ACLI10/18/2010Affiliates of Platinum Equity (N/A)$777 million$33.00$32.9312/31/20100.21%3.10%
+CLRT10/22/2010GE Healthcare (GE)$580 million$5.00$4.9901/31/20110.20%1.31%
+CLU09/16/2010Clearwater Paper Corporation (CLW)$247 million$12.00$11.9812/31/20100.17%2.44%
+INET09/20/2010an affiliate of Hellman & Friedman Capital Partners (N/A)$640 million$13.35$13.3312/31/20100.15%2.19%
+TEAM11/02/2010fanini International Holdings Ltd for $93.4 million (N/A)$93.4 million$8.35$8.3412/31/20100.12%1.75%
+ATLS11/09/2010Chevron Coproation (CVX)$4.3 billion$43.34$43.2903/31/20110.12%0.37%
+AEZ07/28/2010Hess Corp (HES)$450 million$10.20$10.1912/31/20100.11%1.63%
+KEI09/28/2010Danaher Corporation (DHR)$340 million$21.60$21.5812/31/20100.09%1.35%
+ADCT07/13/2010Tyco Electronics (TEL)$1.24 billion$12.75$12.7412/31/20100.08%1.15%
+STU09/17/2010Discover Financial Services (N/A)N/A$30.00$29.9812/31/20100.07%0.97%
+NCOC09/28/2010Ranger Energy Investments (N/A)$8.6 million$1.00$0.999512/15/20100.05%2.03%
+RSCR09/07/2010Onex Corp (N/A)$390 million$13.25$13.2512/31/20100.00%0.00%
+CTV10/25/2010Carlyle (N/A)$3 billion$31.50$31.6903/31/2011-0.60%-1.90%
+RAE09/20/2010Battery Ventures (N/A)$95 million$1.60$1.6112/31/2010-0.62%-9.07%
+NST10/18/2010Northeast Utilities (NU)$4.17 billion$41.51$41.8009/30/2011-0.69%-0.84%
+PZZ08/16/2010Leonard Green & Partners (N/A)$363 million$8.50$8.5612/31/2010-0.70%-10.23%
+JCG11/23/2010private equity firms TPG Capital and Leonard Green & Partners (N/A)$3 billion$43.50$44.1303/31/2011-1.43%-4.53%
+DVD09/27/2010Dover Downs Gaming & Entertainment Inc (DDE)N/A$1.75$1.8012/31/2010-2.86%-41.78%
+CADE10/06/2010Community Bancorp LLC (N/A)$38 million$2.25$2.4703/31/2011-9.05%-28.72%
+DDMX10/01/2010Greenbriar Equity Group (N/A)$210 million$21.25$24.2402/15/2011-12.33%-63.41%
+HBE10/06/2010Kratos Defense & Security Solutions (KTOS)$45 million$7.00$8.1712/31/2010-14.32%-209.08%
+DYN08/13/2010Blackstone Group (BX)$4.7 billion$4.50$5.2712/31/2010-14.61%-213.32%
+ALY08/12/2010Seawell (N/A)$890 million$4.25$5.9712/31/2010-28.81%-420.64%

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