Merger Arbitrage Mondays – January 17, 2011

Merger activity remained steady last week with three new deals announced and three 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 2011 9
Total Number of Pending Deals
Cash Deals 42
Stock Deals 16
Stock & Cash Deals 9
Special Conditions Deals 1
Total Number of Pending Deals 68

New Deals:

  1. The acquisition of Playboy Enterprises Inc. (PLA) by Icon Acquisition Holdings, L.P. for $6.15 per share in cash.
  2. The acquisition of Progress Energy Inc. (PGN) by Duke Energy Corporation (DUK). On the completion of merger Progress Energy’s shareholders will receive 2.6125 shares of common stock of Duke Energy in exchange for each share of Progress Energy common stock. Based on Duke Energy’s closing share price on Jan. 7, 2011, Progress Energy shareholders would receive a value of $46.48 per share, or $13.7 billion in total equity value.
  3. The acquisition of Conexant Systems, Inc. (CNXT) by Standard Microsystems Corp. (SMSC) for $2.21 per share in a cash plus stock deal. Conexant shareholders will receive $1.125 in cash and a fraction of a share of SMSC common stock equal to $1.125 divided by the volume weighted average price of SMSC common stock for the 20 trading days ending on the second trading day prior to closing, but in no event more than 0.04264 nor less than 0.03489 shares of SMSC common stock. On account of this varying ratio, the deal type is listed as “Special Conditions” in our Merger Arbitrage Tool.


Closed Deals:

  1. The acquisition of Syniverse Holdings (SVR) by Carlyle on January 13, 2011.
  2. The acquisition of CommScope Inc (CTV) by Carlyle on January 13, 2011.
  3. The acquisition of T-3 Energy Services (TTES) by Robbins & Myers Inc. (RBN) on January 10, 2011.


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) $12.56 $8.59 06/30/2011

46.18%

102.78%
TLCR 06/07/2010 Grifols (GRF.MC) $28.44 $22.86 03/31/2011 24.40% 122.01%
DTG 04/26/2010 Avis (CAR) $55.31 $48.13 03/31/2011 14.91% 74.54%
NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) $0.67 $0.62 06/30/2011 8.75% 19.48%
MAJC 09/21/2010 Bayside Capital Partners (N/A) $4.50 $4.2152 03/31/2011 6.76% 33.78%
ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) $12.74 $12.11 03/31/2011 5.22% 26.09%
PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $28.34 $26.95 03/31/2011 5.16% 25.82%
PGN 01/10/2011 Duke Energy Corporation (DUK) $46.82 $44.73 12/31/2011 4.66% 4.89%
MI 12/17/2010 BMO Financial Group (BMO) $7.57 $7.24 07/31/2011 4.55% 8.52%
CNXT 01/10/2011 Standard Microsystems Corp. (SMSC) $2.21 $2.12 06/30/2011 4.48% 9.96%

List of all Pending Deals:

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