Merger Arbitrage Mondays – December 20, 2010

  • December 20, 2010

Merger activity increased last week with six new deals announced and five 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 2010133
Total Number of Deals That Did Not Complete in 20107
Total Number of Pending Deals
Cash Deals49
Stock Deals15
Stock & Cash Deals10
Total Number of Pending Deals74


New Deals:

  1. The acquisition of Dionex Corp. (DNEX) by Thermo Fisher Scientific Inc. (TMO) for $2.1 billion or $118.50 per share in cash
  2. The acquisition of Matrixx Initiatives Inc. (MTXX) by H.I.G Capital for $75.2 million or $8.00 per share in cash
  3. The acquisition of Dynegy Inc. (DYN) by Icahn Enterprises LP (IEP) for $665 million or $5.50 per share in cash. As discussed in the previous Merger Arbitrage post, The Blackstone Group (BX) and Dynegy (DYN) scrapped their merger agreement after a shareholder meeting on December 06, 2010.
  4. The acquisition of Alcon Inc. (ACL) by Novartis (NVS) for $12.9 billion or $168 per share through a combination of 2.8 Novartis shares and a contingent value cash component (CVA). The merger consideration will include up to 2.8 Novartis shares and a CVA to be settled in cash that will in aggregate equal $168. If the value of 2.8 Novartis shares is more than $168 the number of Novartis shares will be reduced accordingly.
  5. The acquisition of Cypress Bioscience Inc. (CYPB) by Ramius LLC and Royalty Pharma for $255 million or $6.50 per share in cash
  6. The acquisition of Marshall & Ilsley Corporation (MI) by BMO Financial Group (BMO) for $4.1 billion in an all-stock acquisition worth $7.75 per share, where Marshall and Ilsley shareholders will receive 0.1257 shares of Bank of Montreal per share held.


Closed Deals:

  1. The acquisition of TechTeam Global (TEAM) by Stefanini IT Solutions on December 13, 2010
  2. The acquisition of Prospect Medical Holdings (PZZ) by Leonard Green & Partners on December 15, 2010
  3. The acquisition of National Coal Corp (NCOC) by Ranger Energy Investments LLC on December 15, 2010
  4. The acquisition of Henry Bros. Electronics (HBE) by Kratos Defense and Security Solutions on December 16, 2010
  5. The acquisition of Internet Brands (INET) by Hellman & Freidman LLC on December 17, 2010


Top 10 deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
LTXC11/18/2010Verigy Ltd (VRGY)$12.68$7.5006/30/2011 69.09% 131.34%
TLCR06/07/2010Grifols (GRF.MC)$27.60$22.3503/31/2011 23.51% 84.96%
DTG04/26/2010Avis (CAR)$55.23$47.0312/31/2010 17.43% 578.20%
SHMR10/15/2010Essilor (N/A)$14.50$13.5106/30/2011 7.33% 13.93%
HYC11/17/2010Verifone Systems (PAY)$9.23$8.6609/30/2011 6.53% 8.39%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$26.42$24.8912/31/2010 6.15% 204.08%
PNNW11/12/2010City of Nashua (N/A)$29.00$27.4009/30/2011 5.84% 7.50%
TCM11/01/2010Hanmax Investment Limited (N/A)$4.50$4.2803/31/2011 5.14% 18.58%
MAJC09/21/2010Bayside Capital Partners (N/A)$4.50$4.2803/31/2011 5.14% 18.58%
MI12/17/2010BMO Financial Group (BMO)$7.20$6.8507/31/2011 5.07% 8.31%
WL11/01/2010M & T Bank Corporation (MTB)$4.25$4.0806/30/2011 4.19% 7.97%

List of all pending deals:

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


 SymbolAnnounced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
VolumeClosing

Date

ProfitAnnu.
Profit
+LTXC11/18/2010Verigy Ltd (VRGY)All Stock$422 million$12.68$7.50983,66206/30/2011 69.09% 131.34%
+TLCR06/07/2010Grifols (GRF.MC)Cash Plus Stock$3.4 billion$27.60$22.351,241,21803/31/2011 23.48% 84.85%
+DTG04/26/2010Avis (CAR)Cash Plus Stock$1.56 billion$55.23$47.03473,39012/31/2010 17.43% 578.20%
+SHMR10/15/2010Essilor (N/A)All Cash$130 million$14.50$13.5129,98606/30/2011 7.33% 13.93%
+HYC11/17/2010Verifone Systems (PAY)All Stock$485 million$9.23$8.662,203,51309/30/2011 6.53% 8.39%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)All Stock$954 million$26.42$24.89259,69512/31/2010 6.15% 204.08%
+PNNW11/12/2010City of Nashua (N/A)All Cash$138 million$29.00$27.4016,32909/30/2011 5.84% 7.50%
+TCM11/01/2010Hanmax Investment Limited (N/A)All CashN/A$4.50$4.2864,76303/31/2011 5.14% 18.58%
+MAJC09/21/2010Bayside Capital Partners (N/A)All Cash$7.8 million$4.50$4.283,19603/31/2011 5.14% 18.58%
+MI12/17/2010BMO Financial Group (BMO)All Stock$4.1 billion$7.20$6.8518107/31/2011

5.07%

8.31%
+WL11/01/2010M & T Bank Corporation (MTB)All Stock$351 million$4.25$4.084,893,24406/30/2011 4.19% 7.97%
+AAI09/27/2010Southwest Airlines (LUV)Cash Plus Stock$1.4 billion$7.75$7.442,963,51603/31/2011

4.17%

15.06%
+CRXL10/06/2010Johnson & Johnson (JNJ)All Cash$2.41 billion$32.54$31.2624,19403/31/2011 4.08% 14.76%
+ADAM08/30/2010Ebix Inc. (EBIX)All Stock$66 million$7.26$6.9975,38612/31/2010 3.93% 130.49%
+NAL08/19/2010First Niagara Financial Group (FNFG)Cash Plus Stock$1.5 billion$14.97$14.43743,09205/15/2011 3.75% 9.37%
+ACL12/15/2010Novartis (NVS)All Cash$12.9 billion$168.00$162.033,373,15506/30/2011 3.68% 7.00%
+MFE08/19/2010Intel Corporation (INTC)All Cash$7.68 billion$48.00$46.373,651,27206/30/2011 3.52% 6.68%
+MCCC11/15/2010Chief Executive Rocco Commisso (N/A)All Cash$600 million$8.75$8.47375,97106/30/2011 3.31% 6.28%
+CLFC12/09/2010Nara Bancorp Inc. (NARA)All Stock$285.7 million$7.20$6.97264,72509/30/2011

3.23%

4.15%
+VCGH11/10/2010Company's chairman of the Board, CEO, President and COO (N/A)All Cash$37 million$2.25$2.1828,70203/31/2011 3.21% 11.60%
+GAS12/07/2010AGL Resources Inc. (AGL)Cash Plus Stock$2.4 billion$51.05$49.67910,47109/30/2011 2.77% 3.57%
+BUCY11/15/2010Caterpillar Inc (CAT)All Cash$8.6 billion$92.00$89.632,043,18606/30/2011 2.64% 5.03%
+OPTC11/11/2010TKH Group (N/A)All CashN/A$2.45$2.398,53703/31/2011 2.51% 9.07%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)All Stock$74 million$11.72$11.444,81903/31/2011 2.43% 8.77%
+AYE02/11/2010FirstEnergy (FE)All Stock$8.5 billion$24.20$23.671,568,10903/31/2011 2.23% 8.07%
+EURX12/01/2010Axcan Holdings, Inc. (N/A)All Cash$583 million$12.00$11.77848,69206/30/2011 1.95% 3.71%
+FMR10/28/2010Fairfax Financial Holdings (FRFHF.PK)All Cash$294 million$16.50$16.20388,21403/31/2011 1.85% 6.69%
+NOVL11/22/2010Attachment Corporation (N/A)All Cash$2.2 billion$6.10$6.006,923,20703/31/2011 1.67% 6.02%
+MROE10/06/2010Old National Bancorp (ONB)All Stock$83.5 million$14.74$14.50132,43403/31/2011

1.65%

5.96%
+DLM11/25/2010Kohlberg Kravis Roberts & Co (KKR)All Cash$4 billion$19.00$18.744,810,68203/31/2011 1.39% 5.01%
+Q04/22/2010Century Link (CTL)All Stock$10.6 billion$7.51$7.4142,596,88004/21/2011 1.34% 4.02%
+ID09/20/2010Safran (N/A)All Cash$1.1 billion$12.00$11.86576,35203/31/2011 1.18% 4.27%
+VOLT11/29/2010Mellanox Technologies, Ltd. (MLNX)All Cash$176 million$8.75$8.6538,85603/31/2011

1.16%

4.18%
+ROAC10/18/2010Swenson Granite Co. (N/A)All Cash$39 million$5.25$5.1910,25503/31/2011 1.16% 4.18%
+MIGP12/01/2010United Fire & Casualty (UFCS)All Cash$191 million$28.25$27.936,92203/31/2011 1.15% 4.14%
+KG10/12/2010Pfizer Inc. (PFE)All Cash$3.6 billion$14.25$14.0931,037,40803/31/2011

1.14%

4.10%
+OCNW09/16/2010Calix Inc. (CALX)Cash Plus Stock$171 million$8.48$8.39100,62512/31/2010 1.09% 36.20%
+LDSH11/17/2010Allegheny Technologies (ATI)Cash Plus Stock$778 million$50.25$49.74696,91303/31/2011 1.03% 3.72%
+BJGP10/28/2010Sanofi – aventis (N/A)All Cash$520.6 million$10.00$9.91126,05003/31/2011 0.91% 3.28%
+AEZ07/28/2010Hess Corp (HES)All Stock$450 million$10.36$10.274,397,83112/31/2010

0.86%

28.40%
+ACV09/27/2010Unilever PLC (N/A)All Cash$3.7 billion$37.50$37.191,559,60203/31/2011 0.83% 3.01%
+SVR10/28/2010Carlyle (N/A)All Cash$2.6 billion$31.00$30.753,343,85103/31/2011 0.81% 2.94%
+CYPB12/15/2010Ramius LLC & Royalty Pharma (N/A)All Cash$255 million$6.50$6.451,008,54401/31/2011

0.78%

6.74%
+CPII11/26/2010Veritas Capital (N/A)All Cash$525 million$19.50$19.3552,42512/31/2069 0.78% 0.01%
+CTV10/25/2010Carlyle (N/A)All Cash$3 billion$31.50$31.263,714,56503/31/2011 0.77% 2.77%
+TTES10/06/2010Robbins & Myers Inc. (RBN)Cash Plus Stock$422 million$39.21$38.9482,18312/31/2010 0.70% 23.28%
+NUHC09/20/2010Arrow Electronics (ARW)All Cash$130 million$7.00$6.96243,00312/31/2010 0.57% 19.07%
+ARTG11/02/2010Oracle (ORCL)All Cash$1 billion$6.00$5.971,866,95503/31/2011 0.50% 1.82%
+BEZ11/29/2010ABB Ltd (ABB)All Cash$4.2 billion$63.50$63.221,567,86003/31/2011 0.44% 1.60%
+CFS11/02/2010affiliate of ABRY Partners (N/A)All Cash$84.8 million$2.50$2.4921,19712/31/2010 0.40% 13.33%
+STU09/17/2010Discover Financial Services (N/A)All CashN/A$30.00$29.9048,35312/31/2010 0.33% 11.10%
+NHWK09/27/2010Virtual Radiologic (N/A)All Cash$170 million$6.50$6.4841,38303/31/2011 0.31% 1.12%
+ACTI10/11/2010Assa Abloy (N/A)All Cash$162 million$3.25$3.24N/A12/31/2010 0.31% 10.24%
+DNEX12/13/2010Thermo Fisher Scientific Inc. (TMO)All Cash$2.1 billion$118.50$118.15362,81903/31/2011 0.30% 1.07%
+CLU09/16/2010Clearwater Paper Corporation (CLW)All Cash$247 million$12.00$11.97114,70412/31/2010 0.25% 8.32%
+ACLI10/18/2010Affiliates of Platinum Equity (N/A)All Cash$777 million$33.00$32.9764,28812/31/2010 0.09% 3.02%
+PRPX02/17/2010L.B. Foster Co. (FSTR)All Cash$112 million$11.80$11.7913,20812/30/2010

0.08%

3.10%
+MAM03/12/2010Emera Inc (N/A)All Cash$75.7 million$45.00$44.9753512/31/2010 0.07% 2.21%
+ISLN11/15/2010EMC Corporation (EMC)All Cash$2.25 billion$33.85$33.83458,59312/31/2010 0.06% 1.96%
+CLRT10/22/2010GE Healthcare (GE)All Cash$580 million$5.00$5.00261,86401/31/2011 0.00% 0.00%
+CCBP08/09/2010F.N.B. Corporation (FNB)Cash Plus Stock$70 million$42.99$43.042,91012/31/2010 -0.12% -3.82%
+JCG11/23/2010private equity firms TPG Capital and Leonard Green & Partners (N/A)All Cash$3 billion$43.50$43.63750,84403/31/2011 -0.30% -1.08%
+ATLS11/09/2010Chevron Coproation (CVX)All Cash$4.3 billion$43.34$43.48906,77703/31/2011 -0.32% -1.16%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$41.83$42.23463,03009/30/2011 -0.96% -1.23%
+GIW10/25/2010Community Bank System (CBU)All Cash$101.8 million$9.50$9.6316,74802/15/2011 -1.35% -8.64%
+MTXX12/14/2010H.I.G. Capital, LLC (N/A)All Cash$75.2 million$8.00$8.1368,88303/31/2011 -1.60% -5.78%
+RAE09/20/2010Battery Ventures (N/A)All Cash$95 million$1.60$1.63274,13312/31/2010 -1.84% -61.07%
+DYN12/15/2010Icahn Enterprises LP (IEP)All Cash$665 million$5.50$5.632,440,26603/31/2011 -2.31% -8.34%
+RSCR09/07/2010Onex Corp (N/A)All Cash$390 million$13.25$13.59427,66312/31/2010 -2.50% -83.02%
+CGC10/01/2010Gammon Gold (GRS)Cash Plus Stock$288 million$4.80$5.13482,31512/31/2010 -6.41% -212.85%
+CADE10/06/2010Community Bancorp LLC (N/A)All Stock$38 million$2.25$2.4718,02103/31/2011 -9.05% -32.70%
+DVD09/27/2010Dover Downs Gaming & Entertainment Inc (DDE)All StockN/A$1.68$1.8714,70412/31/2010 -9.98% -331.18%
+DDMX10/01/2010Greenbriar Equity Group (N/A)All Cash$210 million$21.25$24.74140,25802/15/2011 -14.11% -90.33%
+ALY08/12/2010Seawell (N/A)All Cash$890 million$4.25$5.96550,73712/31/2010 -28.69% -952.03%

Contributing Author: Ann Kumar