Merger Arbitrage Mondays – January 24, 2011

  • January 24, 2011

Merger activity increased last week with five new deals announced and one deal 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 201110
Total Number of Pending Deals
Cash Deals44
Stock Deals17
Stock & Cash Deals9
Special Conditions1
Total Number of Pending Deals71

New Deals:

  1. The acquisition of RAE Systems Inc. (RAE) by Vector Capital for $1.75 per share in cash.
  2. The acquisition of Sterling Bancshares Inc. (SBIB) by Comerica Incorporated (CMA). Expected to close by mid-year 2011 for a closing value of $1.027 billion. According to the terms of the deal, each outstanding share of Sterling common stock will be exchanged for 0.2365 shares of Comerica common stock upon closing.
  3. The acquisition of TAM S. A. (TAM) by LAN Airlines S.A. (LFL). Completion of this transaction is expected to take between six to nine months. On the completion of merger TAM shareholders will receive 0.90 shares in LAN for each TAM share they hold.
  4. The acquisition of Danvers Bancorp Inc. (DNBK) by People’s United Financial Inc. (PBCT) for $23 per share in cash.
  5. The acquisition of NovaMed Inc. (NOVA) by Surgery Partners for $13.25 per share in cash.


Closed Deals:

  1. The acquisition of Rock of Ages Corp. (ROAC) by Swenson Granite Co. on January 20, 2011.


Top 10 Deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
LTXC11/18/2010Verigy Ltd (VRGY)$12.33$7.9206/30/2011 55.64% 129.35%
TLCR06/07/2010Grifols (GRF.MC)$28.64$23.8803/31/2011 19.93% 110.23%
DTG04/26/2010Avis (CAR)$54.79$47.9503/31/2011 14.27% 78.93%
TAM01/19/2011LAN Airlines S.A. (LFL)$26.93$24.8709/30/2011 8.28% 12.13%
DNBK01/20/2011People's United Financial Inc. (PBCT)$23.00$21.6506/30/2011 6.24% 14.50%
SHMR10/15/2010Essilor (N/A)$14.50$13.6906/30/2011 5.92% 13.76%
MAJC09/21/2010Bayside Capital Partners (N/A)$4.50$4.2503/31/2011 5.88% 32.53%
NGAS12/27/2010Magnum Hunter Resources Corp. (MHR)$0.60$0.568506/30/2011 5.21% 12.11%
PGN01/10/2011Duke Energy Corporation (DUK)$47.44$45.1712/31/2011 5.03% 5.39%
CNXT01/10/2011Standard Microsystems Corp. (SMSC)$2.15$2.049906/30/2011 4.97% 11.55%

List of pending deals:

 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$12.33$7.92400,47606/30/2011 55.64% 129.35%
+TLCR06/07/2010Grifols (GRF.MC)Cash Plus Stock$3.4 billion$28.63$23.88863,74503/31/2011 19.90% 110.05%
+DTG04/26/2010Avis (CAR)Cash Plus Stock$1.56 billion$54.79$47.95351,08703/31/2011 14.27% 78.93%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$26.93$24.87837,19709/30/2011 8.28% 12.13%
+DNBK01/20/2011People's United Financial Inc. (PBCT)All Cash$493 million$23.00$21.656,022,99306/30/2011 6.24% 14.50%
+SHMR10/15/2010Essilor (N/A)All Cash$130 million$14.50$13.6917,12906/30/2011

5.92%

13.76%
+MAJC09/21/2010Bayside Capital Partners (N/A)All Cash$7.8 million$4.50$4.2583003/31/2011 5.88% 32.53%
+NGAS12/27/2010Magnum Hunter Resources Corp. (MHR)All Stock$98 million$0.60$0.5685747,47206/30/2011 5.21% 12.11%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$47.44$45.171,878,55812/31/2011 5.03% 5.39%
+CNXT01/10/2011Standard Microsystems Corp. (SMSC)Special Conditions$284 million$2.15$2.04991,820,97606/30/2011 4.97% 11.55%
+ALY08/12/2010Seawell (SEAW.OL)All Stock$890 million$7.88$7.52680,90503/31/2011 4.77% 26.36%
+HYC11/17/2010Verifone Systems (PAY)All Stock$485 million$9.47$9.05294,86609/30/2011 4.63% 6.79%
+MI12/17/2010BMO Financial Group (BMO)All Stock$4.1 billion$7.45$7.1310,138,97007/31/2011 4.53% 8.79%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)All Stock$954 million$26.86$25.84134,76903/31/2011 3.95% 21.87%
+PNNW11/12/2010City of Nashua (N/A)All Cash$138 million$29.00$27.9532,90009/30/2011 3.76% 5.51%
+AAI09/27/2010Southwest Airlines (LUV)Cash Plus Stock$1.4 billion$7.75$7.482,532,50703/31/2011

3.61%

19.96%
+ACL12/15/2010Novartis (NVS)All Cash$12.9 billion$168.00$162.84917,07806/30/2011 3.17% 7.37%
+WTNY12/22/2010Hancock Holding Company (HBHC)All Stock$1.5 billion$14.05$13.641,003,40706/30/2011 3.03% 7.04%
+GAS12/07/2010AGL Resources Inc. (AGL)Cash Plus Stock$2.4 billion$51.79$50.30324,64109/30/2011 2.97% 4.35%
+ADAM08/30/2010Ebix Inc. (EBIX)All Stock$66 million$7.29$7.0923,60912/31/2010 2.82% 0.00%
+VCGH11/10/2010Company's chairman of the Board, CEO, President and COO (N/A)All Cash$37 million$2.25$2.1915,30003/31/2011 2.74% 15.15%
+NOVL11/22/2010Attachment Corporation (N/A)All Cash$2.2 billion$6.10$5.943,613,57403/31/2011 2.69% 14.90%
+TCM11/01/2010Hanmax Investment Limited (N/A)All CashN/A$4.50$4.391,70003/31/2011 2.51% 13.86%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)All Stock$74 million$12.03$11.741,30003/31/2011 2.46% 13.61%
+RAE01/18/2011Vector Capital (N/A)All CashN/A$1.75$1.7157,60406/30/2011 2.34% 5.44%
+WL11/01/2010M & T Bank Corporation (MTB)All Stock$351 million$4.46$4.36676,71906/30/2011 2.24% 5.20%
+LEGC12/21/2010Berkshire Hills Bancorp (BHLB)Cash Plus Stock$108 million$13.29$13.0015,47506/30/2011 2.21% 5.14%
+NAL08/19/2010First Niagara Financial Group (FNFG)Cash Plus Stock$1.5 billion$15.22$14.91398,89705/15/2011 2.11% 6.93%
+CPEX01/04/2011FCB I Holdings Inc. (N/A)All CashN/A$27.25$26.7014,36406/30/2010 2.06% 0.00%
+MCCC11/15/2010Chief Executive Rocco Commisso (N/A)All Cash$600 million$8.75$8.58152,93206/30/2011 1.98% 4.61%
+BUCY11/15/2010Caterpillar Inc (CAT)All Cash$8.6 billion$92.00$90.42808,38106/30/2011 1.75% 4.06%
+CRXL10/06/2010Johnson & Johnson (JNJ)All Cash$2.41 billion$33.57$33.0544,75403/31/2011 1.58% 8.72%
+Q04/22/2010Century Link (CTL)All Stock$10.6 billion$7.02$6.9129,573,08604/21/2011 1.53% 6.40%
+JAS12/23/2010affiliate of Leonard Green & Partners LP (N/A)All Cash$1.6 billion$61.00$60.28527,28906/30/2011 1.19% 2.78%
+AYE02/11/2010FirstEnergy (FE)All Stock$8.5 billion$26.39$26.101,728,84103/31/2011 1.12% 6.21%
+ATHR01/05/2011QUALCOMM Incorporated (QCOM)All Cash$3.1 billion$45.00$44.534,462,01206/30/2011 1.06% 2.45%
+OCNW09/16/2010Calix Inc. (CALX)Cash Plus Stock$171 million$8.45$8.3743,14312/31/2010 0.95% 0.00%
+ID09/20/2010Safran (N/A)All Cash$1.1 billion$12.00$11.891,240,43003/31/2011 0.93% 5.12%
+BJGP10/28/2010Sanofi – aventis (N/A)All Cash$520.6 million$10.00$9.91107,50603/31/2011 0.91% 5.02%
+ACV09/27/2010Unilever PLC (N/A)All Cash$3.7 billion$37.50$37.17954,16403/31/2011 0.89% 4.91%
+CLFC12/09/2010Nara Bancorp Inc. (NARA)All Stock$285.7 million$7.20$7.14134,28909/30/2011 0.88% 1.30%
+MIGP12/01/2010United Fire & Casualty (UFCS)All Cash$191 million$28.25$28.01013,28603/31/2011 0.86% 4.74%
+PLA01/10/2011Icon Acquisition Holdings, L.P. (N/A)All CashN/A$6.15$6.10784,64003/31/2011 0.82% 4.53%
+OPTC11/11/2010TKH Group (N/A)All CashN/A$2.45$2.43015,75003/31/2011 0.82% 4.53%
+VOLT11/29/2010Mellanox Technologies, Ltd. (MLNX)All Cash$176 million$8.75$8.684,38203/31/2011 0.81% 4.46%
+CADE10/06/2010Community Bancorp LLC (N/A)All Cash$38 million$2.50$2.4810,60003/31/2011 0.81% 4.46%
+MFE08/19/2010Intel Corporation (INTC)All Cash$7.68 billion$48.00$47.682,019,39106/30/2011 0.67% 1.56%
+DLM11/25/2010Kohlberg Kravis Roberts & Co (KKR)All Cash$4 billion$19.00$18.884,246,13003/31/2011 0.64% 3.52%
+CPII11/26/2010Veritas Capital (N/A)All Cash$525 million$19.50$19.40186,60803/31/2011 0.52% 2.85%
+FMR10/28/2010Fairfax Financial Holdings (FRFHF.PK)All Cash$294 million$16.50$16.4236,73103/31/2011 0.49% 2.69%
+NOVA01/21/2011Surgery Partners (N/A)All Cash$214 million$13.25$13.192,397,27306/30/2011 0.45% 1.06%
+SBIB01/18/2011Comerica Incorporated (CMA)All Stock$1.027 billion$9.34$9.304,629,34706/30/2011

0.45%

1.04%
+DDMX10/01/2010TransForce Inc. (TFI.TO)All Cash$210 million$25.00$24.8923,39902/15/2011 0.44% 7.33%
+DNEX12/13/2010Thermo Fisher Scientific Inc. (TMO)All Cash$2.1 billion$118.50$118.0370,78403/31/2011 0.40% 2.20%
+MTXX12/14/2010H.I.G. Capital, LLC (N/A)All Cash$75.2 million$8.00$7.97326,68503/31/2011 0.38% 2.08%
+KG10/12/2010Pfizer Inc. (PFE)All Cash$3.6 billion$14.25$14.203,418,67703/31/2011

0.35%

1.95%
+LDSH11/17/2010Allegheny Technologies (ATI)Cash Plus Stock$778 million$50.56$50.3997,51603/31/2011 0.33% 1.83%
+APSG12/20/2010Raytheon Company (RTN)All CashN/A$38.00$37.90105,82903/31/2011 0.26% 1.46%
+EURX12/01/2010Axcan Holdings, Inc. (N/A)All Cash$583 million$12.00$11.97126,30206/30/2011 0.25% 0.58%
+LCRD12/20/2010ASSA ABLOY (N/A)All Cash$80 million$6.25$6.235229,41103/31/2011 0.24% 1.33%
+MATK12/21/2010DSM (N/A)All Cash$1,087 million$31.50$31.45454,38206/30/2011 0.16% 0.37%
+JCG11/23/2010private equity firms TPG Capital and Leonard Green & Partners (N/A)All Cash$3 billion$43.50$43.471,773,92903/31/2011 0.07% 0.38%
+BEZ11/29/2010ABB Ltd (ABB)All Cash$4.2 billion$63.50$63.50589,17903/31/2011 0.00% 0.00%
+TOD12/23/2010Vigor Industrial LLC (N/A)All Cash $130 million$22.27$22.2917,60503/31/2011 -0.09% -0.50%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$42.74$42.79209,75209/30/2011 -0.11% -0.15%
+ATLS11/09/2010Chevron Coproation (CVX)All Cash$4.3 billion$43.34$43.94959,89003/31/2011 -1.37% -7.55%
+CGC10/01/2010Gammon Gold (GRS)Cash Plus Stock$288 million$4.58$4.67180,95712/31/2010 -1.99% 30.30%
+DYN12/15/2010Icahn Enterprises LP (IEP)All Cash$665 million$5.50$5.641,595,66403/31/2011 -2.48% -13.73%
+GIW10/25/2010Community Bank System (CBU)All Cash$101.8 million$9.50$9.9018,33002/15/2011 -4.04% -67.03%
+SNIC12/23/2010Rovi Corporation (ROVI)All Cash$720 million$14.00$14.78751,490,25603/31/2011 -5.33% -29.45%
+UAM12/31/2010CVS Caremark Corporation (CVS)All Cash$1.25 billionN/A$20.56382,66406/30/2010 N/A N/A

Voluntary Disclosure: I have a long position in Danvers Bancorp (DNBK).