Merger Arbitrage Mondays – December 27, 2010

  • December 27, 2010

Merger activity increased last week with eight new deals announced and six 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 2010 139
Total Number of Deals That Did Not Complete in 2010 7
Total Number of Pending Deals
Cash Deals 49
Stock Deals 16
Stock & Cash Deals 11
Total Number of Pending Deals 76


New Deals:

  1. The acquisition of Applied Signal Technologies (APSG) by Raytheon Company (RTN) for $38.00 per share in cash.
  2. The acquisition of LaserCard Corporation (LCRD) by Assa Abloy for $80 million or $6.25 per share in cash.
  3. The acquisition of Todd Shipyards Corporation (TOD) by Vigor Industrial LLC for $130 million or $22.27 per share in cash.
  4. The acquisition of Sonic Solutions (SNIC) by ROVI Corporation (ROVI) for $720 million or $14 per share in a cash and stock transaction. Sonic shareholders may elect to receive either $14.00 or 0.2489 shares of Rovi common stock for each share tendered and accepted in the exchange offer.
  5. The acquisition of Martek Biosciences Corporation (MATK) by DSM for $1.087 billion or $31.50 per share in cash.
  6. The acquisition of Legacy Bancorp (LEGC) by Berkshire Hills Bancorp (BHLB) for $108 million in a cash plus stock deal, where Legacy Bancorp shareholders will receive 0.56385 Berkshire common shares plus $1.30 in cash.
  7. The acquisition of Whitney Holding Corporation (WTNY) by Hancock Holding Company (HBHC) for $1.5 billion in an all stock deal, where Whitney Holding Corporation shareholders will receive 0.418 shares of Hancock Holding Company common stock in exchange for each share of Whitney common stock. I missed this one even though I had Whitney on my watch list of regional banks. Instead I picked up four other regional banks for my personal portfolio over the last year, some of which were discussed in my April 2010 newsletter on regional banks.
  8. The acquisition of Jo-Ann Stores (JAS) by an affiliate of Leonard Green & Partners LP for 1.6 billion or $61.00 per share in cash.


Closed Deals:

  1. The acquisition of American Commercial Lines (ACLI) by Platinum Equity on December 21, 2010
  2. The acquisition of Clarient Inc. (CLRT) by GE Healthcare on December 22, 2010
  3. The acquisition of Isilon Systems (ISLN) by EMC on December 21, 2010
  4. The acquisition of Maine and Maritimes Corporation (MAM) by Emery Inc. on December 20, 2010
  5. The acquisition of NightHawk Radiology Holdings (NHWK) by Virtual Radiologic on December 22, 2010
  6. The acquisition of ResCare Inc. (RSCR) by Onex Corporation on December 23, 2010


Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring

Company

Closing

Price

Last
Price
Closing
Date
Profit Annu.
Profit
LTXC 11/18/2010 Verigy Ltd (VRGY) $12.51 $7.725 06/30/2011

61.93%

122.18%
TLCR 06/07/2010 Grifols (GRF.MC) $27.84 $23.12 03/31/2011 20.40% 79.20%
DTG 04/26/2010 Avis (CAR) $55.58 $47.47 03/31/2011 17.09% 66.38%
SHMR 10/15/2010 Essilor (N/A) $14.50 $13.34 06/30/2011 8.70% 17.16%
MAJC 09/21/2010 Bayside Capital Partners (N/A) $4.50 $4.18 03/31/2011 7.66% 29.73%
HYC 11/17/2010 Verifone Systems (PAY) $9.02 $8.46 09/30/2011 6.60% 8.70%
MI 12/17/2010 BMO Financial Group (BMO) $7.09 $6.66 07/31/2011 6.43% 10.87%
PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $27.35 $25.80 12/31/2010 6.01% 548.84%
PNNW 11/12/2010 City of Nashua (N/A) $29.00 $27.40 09/30/2011 5.84% 7.69%
MROE 10/06/2010 Old National Bancorp (ONB) $14.92 $14.12 03/31/2011 5.65% 21.93%

List of all pending deals:

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


  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing

Date

Profit Annu.
Profit
+ LTXC 11/18/2010 Verigy Ltd (VRGY) All Stock $422 million $12.51 $7.725 1,890,767 06/30/2011 61.93% 122.18%
+ TLCR 06/07/2010 Grifols (GRF.MC) Cash Plus Stock $3.4 billion $27.84 $23.12 272,817 03/31/2011 20.40% 79.20%
+ DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $55.58 $47.47 N/A 03/31/2011 17.09% 66.38%
+ SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $13.34 32,111 06/30/2011 8.70% 17.16%
+ MAJC 09/21/2010 Bayside Capital Partners (N/A) All Cash $7.8 million $4.50 $4.18 4,900 03/31/2011 7.66% 29.73%
+ HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $9.02 $8.46 430,716 09/30/2011 6.60% 8.70%
+ MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $7.09 $6.66 41,254,320 07/31/2011 6.43% 10.87%
+ PVG 09/21/2010 Penn Virginia Resource Partners (PVR) All Stock $954 million $27.35 $25.80 153,403 12/31/2010 6.01% 548.84%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $27.40 13,551 09/30/2011 5.84% 7.69%
+ MROE 10/06/2010 Old National Bancorp (ONB) All Stock $83.5 million $14.92 $14.12 69,064 03/31/2011

5.65%

21.93%
+ CRXL 10/06/2010 Johnson & Johnson (JNJ) All Cash $2.41 billion $32.58 $30.94 17,460 03/31/2011 5.30% 20.59%
+ AAI 09/27/2010 Southwest Airlines (LUV) Cash Plus Stock $1.4 billion $7.75 $7.36 1,917,529 03/31/2011 5.30% 20.58%
+ MFE 08/19/2010 Intel Corporation (INTC) All Cash $7.68 billion $48.00 $46.28 1,111,015 06/30/2011

3.72%

7.33%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) Cash Plus Stock $1.5 billion $15.61 $15.07 711,223 05/15/2011 3.58% 9.39%
+ LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $13.14 $12.69 169,077 06/30/2011 3.55% 7.01%
+ ACL 12/15/2010 Novartis (NVS) All Cash $12.9 billion $168.00 $162.39 518,849 06/30/2011 3.45% 6.82%
+ TCM 11/01/2010 Hanmax Investment Limited (N/A) All Cash N/A $4.50 $4.35 12,684 03/31/2011 3.45% 13.39%
+ MCCC 11/15/2010 Chief Executive Rocco Commisso (N/A) All Cash $600 million $8.75 $8.46 162,616 06/30/2011 3.43% 6.76%
+ WTNY 12/22/2010 Hancock Holding Company (HBHC) All Stock $1.5 billion $13.84 $13.41 2,714,156 06/30/2011 3.24% 6.39%
+ BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $89.38 706,934 06/30/2011 2.93% 5.78%
+ VCGH 11/10/2010 Company's chairman of the Board, CEO, President and COO (N/A) All Cash $37 million $2.25 $2.19 38,892 03/31/2011 2.74% 10.64%
+ ADAM 08/30/2010 Ebix Inc. (EBIX) All Stock $66 million $7.47 $7.28 46,208 12/31/2010 2.67% 243.25%
+ WL 11/01/2010 M & T Bank Corporation (MTB) All Stock $351 million $4.37 $4.28 512,558 06/30/2011 2.20% 4.35%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $51.66 $50.55 217,123 09/30/2011 2.20% 2.89%
+ AEZ 07/28/2010 Hess Corp (HES) All Stock $450 million $10.41 $10.20 N/A 12/31/2010 2.09% 190.40%
+ AYE 02/11/2010 FirstEnergy (FE) All Stock $8.5 billion $24.71 $24.22 578,603 03/31/2011 2.01% 7.79%
+ ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) All Stock $74 million $11.88 $11.66 9,100 03/31/2011 1.90% 7.39%
+ NOVL 11/22/2010 Attachment Corporation (N/A) All Cash $2.2 billion $6.10 $5.99 3,966,157 03/31/2011 1.84% 7.13%
+ EURX 12/01/2010 Axcan Holdings, Inc. (N/A) All Cash $583 million $12.00 $11.79 283,267 06/30/2011 1.78% 3.51%
+ ACV 09/27/2010 Unilever PLC (N/A) All Cash $3.7 billion $37.50 $36.94 484,340 03/31/2011 1.52% 5.89%
+ JAS 12/23/2010 affiliate of Leonard Green & Partners LP (N/A) All Cash $1.6 billion $61.00 $60.19 6,545,240 06/30/2011 1.35% 2.66%
+ DLM 11/25/2010 Kohlberg Kravis Roberts & Co (KKR) All Cash $4 billion $19.00 $18.75 1,407,379 03/31/2011 1.33% 5.18%
+ KG 10/12/2010 Pfizer Inc. (PFE) All Cash $3.6 billion $14.25 $14.07 969,314 03/31/2011 1.28% 4.97%
+ ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.85 291,376 03/31/2011 1.27% 4.92%
+ OPTC 11/11/2010 TKH Group (N/A) All Cash N/A $2.45 $2.42 6,220 03/31/2011 1.24% 4.81%
+ LDSH 11/17/2010 Allegheny Technologies (ATI) Cash Plus Stock $778 million $50.26 $49.70 62,419 03/31/2011

1.13%

4.38%
+ MIGP 12/01/2010 United Fire & Casualty (UFCS) All Cash $191 million $28.25 $27.98 4,732 03/31/2011 0.96% 3.75%
+ JCG 11/23/2010 private equity firms TPG Capital and Leonard Green & Partners (N/A) All Cash $3 billion $43.50 $43.11 1,079,565 03/31/2011 0.90% 3.51%
+ CPII 11/26/2010 Veritas Capital (N/A) All Cash $525 million $19.50 $19.33 13,161 12/31/2069 0.88% 0.01%
+ CTV 10/25/2010 Carlyle (N/A) All Cash $3 billion $31.50 $31.23 943,685 03/31/2011 0.86% 3.36%
+ BJGP 10/28/2010 Sanofi – aventis (N/A) All Cash $520.6 million $10.00 $9.915 271,953 03/31/2011 0.86% 3.33%
+ OCNW 09/16/2010 Calix Inc. (CALX) Cash Plus Stock $171 million $8.79 $8.72 23,550 12/31/2010 0.82% 74.90%
+ VOLT 11/29/2010 Mellanox Technologies, Ltd. (MLNX) All Cash $176 million $8.75 $8.68 2,900 03/31/2011 0.81% 3.13%
+ FMR 10/28/2010 Fairfax Financial Holdings (FRFHF.PK) All Cash $294 million $16.50 $16.37 361,441 03/31/2011 0.79% 3.08%
+ CYPB 12/15/2010 Ramius LLC & Royalty Pharma (N/A) All Cash $255 million $6.50 $6.45 528,372 01/31/2011 0.78% 8.08%
+ BEZ 11/29/2010 ABB Ltd (ABB) All Cash $4.2 billion $63.50 $63.11 843,942 03/31/2011 0.62% 2.40%
+ SVR 10/28/2010 Carlyle (N/A) All Cash $2.6 billion $31.00 $30.83 658,398 03/31/2011 0.55% 2.14%
+ TTES 10/06/2010 Robbins & Myers Inc. (RBN) Cash Plus Stock $422 million $39.19 $38.99 74,389 12/31/2010 0.50% 45.95%
+ APSG 12/20/2010 Raytheon Company (RTN) All Cash N/A $38.00 $37.81 207,454 03/31/2011

0.50%

1.95%
+ CFS 11/02/2010 affiliate of ABRY Partners (N/A) All Cash $84.8 million $2.50 $2.49 25,680 12/31/2010 0.40% 36.65%
+ ROAC 10/18/2010 Swenson Granite Co. (N/A) All Cash $39 million $5.25 $5.23 9,000 03/31/2011 0.38% 1.48%
+ CCBP 08/09/2010 F.N.B. Corporation (FNB) Cash Plus Stock $70 million $44.61 $44.45 100 12/31/2010 0.37% 33.69%
+ ACTI 10/11/2010 Assa Abloy (N/A) All Cash $162 million $3.25 $3.24 N/A 12/31/2010 0.31% 28.16%
+ NUHC 09/20/2010 Arrow Electronics (ARW) All Cash $130 million $7.00 $6.98 17,426 12/31/2010 0.29% 26.15%
+ Q 04/22/2010 Century Link (CTL) All Stock $10.6 billion $7.70 $7.68 31,365,400 04/21/2011 0.27% 0.87%
+ DNEX 12/13/2010 Thermo Fisher Scientific Inc. (TMO) All Cash $2.1 billion $118.50 $118.20 112,063 03/31/2011 0.25% 0.99%
+ ARTG 11/02/2010 Oracle (ORCL) All Cash $1 billion $6.00 $5.985 1,058,279 03/31/2011 0.25% 0.97%
+ TOD 12/23/2010 Vigor Industrial LLC (N/A) All Cash $130 million $22.27 $22.22 283,250 03/31/2011 0.23% 0.87%
+ PRPX 02/17/2010 L.B. Foster Co. (FSTR) All Cash $112 million $11.80 $11.79 23,949 12/30/2010

0.08%

10.32%
+ CLU 09/16/2010 Clearwater Paper Corporation (CLW) All Cash $247 million $12.00 $11.99 4,960 12/31/2010 0.08% 7.61%
+ STU 09/17/2010 Discover Financial Services (N/A) All Cash N/A $30.00 $30.00 9,840 12/31/2010 0.00% 0.00%
+ ATLS 11/09/2010 Chevron Coproation (CVX) All Cash $4.3 billion $43.34 $43.39 402,058 03/31/2011 -0.12% -0.45%
+ LCRD 12/20/2010 ASSA ABLOY (N/A) All Cash $80 million $6.25 $6.26 852,095 03/31/2011 -0.16% -0.62%
+ MATK 12/21/2010 DSM (N/A) All Cash $1,087 million $31.50 $31.57 N/A 06/30/2011 -0.22% -0.44%
+ RAE 09/20/2010 Battery Ventures (N/A) All Cash $95 million $1.60 $1.61 28,315 12/31/2010 -0.62% -56.68%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $41.80 $42.36 158,072 09/30/2011

-1.32%

-1.74%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $7.34 $7.45 98,937 09/30/2011 -1.43% -1.88%
+ MTXX 12/14/2010 H.I.G. Capital, LLC (N/A) All Cash $75.2 million $8.00 $8.22 31,516 03/31/2011 -2.68% -10.39%
+ SNIC 12/23/2010 Rovi Corporation (ROVI) All Cash $720 million $14.00 $14.42 N/A 03/31/2011 -2.91% -11.31%
+ CGC 10/01/2010 Gammon Gold (GRS) Cash Plus Stock $288 million $4.81 $4.99 137,656 12/31/2010 -3.58% -326.69%
+ DVD 09/27/2010 Dover Downs Gaming & Entertainment Inc (DDE) All Stock N/A $1.72 $1.80 1,885 12/31/2010 -4.53% -413.51%
+ GIW 10/25/2010 Community Bank System (CBU) All Cash $101.8 million $9.50 $10.02 18,699 02/15/2011

-5.19%

-37.88%
+ DYN 12/15/2010 Icahn Enterprises LP (IEP) All Cash $665 million $5.50 $5.86 1,717,569 03/31/2011 -6.14% -23.85%
+ CADE 10/06/2010 Community Bancorp LLC (N/A) All Stock $38 million $2.25 $2.47 36,078 03/31/2011 -9.05% -35.13%
+ DDMX 10/01/2010 Greenbriar Equity Group (N/A) All Cash $210 million $21.25 $24.75 24,842 02/15/2011 -14.14% -103.23%
+ ALY 08/12/2010 Seawell (N/A) All Cash $890 million $4.25 $6.33 154,022 12/31/2010 -32.86% -2998.42%

Contributing Author: Ann Kumar