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Merger Arbitrage Mondays – January 17, 2011

  • January 16, 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 20119
Total Number of Pending Deals
Cash Deals42
Stock Deals16
Stock & Cash Deals9
Special Conditions Deals1
Total Number of Pending Deals68

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:

SymbolAnnounced
Date
Acquiring

Company

Closing

Price

Last
Price
Closing
Date
ProfitAnnu.
Profit
LTXC11/18/2010Verigy Ltd (VRGY)$12.56$8.5906/30/2011

46.18%

102.78%
TLCR06/07/2010Grifols (GRF.MC)$28.44$22.8603/31/2011 24.40% 122.01%
DTG04/26/2010Avis (CAR)$55.31$48.1303/31/2011 14.91% 74.54%
NGAS12/27/2010Magnum Hunter Resources Corp. (MHR)$0.67$0.6206/30/2011 8.75% 19.48%
MAJC09/21/2010Bayside Capital Partners (N/A)$4.50$4.215203/31/2011 6.76% 33.78%
ROME10/12/2010Berkshire Hills Bancorp (BHLB)$12.74$12.1103/31/2011 5.22% 26.09%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$28.34$26.9503/31/2011 5.16% 25.82%
PGN01/10/2011Duke Energy Corporation (DUK)$46.82$44.7312/31/2011 4.66% 4.89%
MI12/17/2010BMO Financial Group (BMO)$7.57$7.2407/31/2011 4.55% 8.52%
CNXT01/10/2011Standard Microsystems Corp. (SMSC)$2.21$2.1206/30/2011 4.48% 9.96%

List of all Pending Deals: