Merger Arbitrage Mondays – January 3, 2011

Merger activity decreased last week with two new deals announced and four 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 144
Total Number of Deals Closed in 2011 1
Total Number of Deals That Did Not Complete in 2010 7
Total Number of Pending Deals
Cash Deals 46
Stock Deals 16
Stock & Cash Deals 10
Total Number of Pending Deals 72



New Deals:

  1. The acquisition of NGAS Resources Inc. (NGAS) by Magnum Hunter Resources Corp. (MHR) for $98 million in an all stock deal, where NGAS Resources Inc. shareholders will receive 0.0846 shares of Magnum Hunter Resources Corp. in exchange for each share of NGAS Resources Inc.
  2. The acquisition of Universal American Corp’s (UAM) Medicare Prescription Drug Business by CVS Caremark Corporation (CVS). UAM shareholders will receive $12.80 to $13 in cash and a share in a newly formed public company, which will own all the other operations of UAM. The newly formed company will have $640 million of cash and statutory capital in its subsidiaries and no debt. The structure of this deal reminds me of the Coca-Cola (KO) – Coca Cola Enterprises (CCE), which turned out to be a profitable merger arbitrage opportunity.


Closed Deals:

  1. The acquisition of ActivIdentity Corporation (ACTI) by Assa Abloy on December 27, 2010.
  2. The acquisition of Cellu Tissue Holdings Inc. (CLU) by Clearwater Paper Corporation (CLW) on December 27, 2010.
  3. The acquisition of Portec Rail Products, Inc. (PRPX) by L.B. Foster Co. (FSTR) on December 29, 2010.
  4. The acquisition of Comforce Corp (CFS) by Affiliate of ABRY Partners on December 28, 2010.
  5. The acquisition of Comm Bancorp (CCBP) by F.N.B Corp (FNB) on January 1, 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) $12.51 $7.40 06/30/2011 69.04% 141.57%
TLCR 06/07/2010 Grifols (GRF.MC) $27.80 $23.30 03/31/2011 19.33% 81.09%
DTG 04/26/2010 Avis (CAR) $55.97 $47.26 03/31/2011 18.43% 77.33%
NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) $0.61 $0.56 06/30/2011 8.77% 17.99%
PNNW 11/12/2010 City of Nashua (N/A) $29.00 $27.35 09/30/2011 6.03% 8.16%
HYC 11/17/2010 Verifone Systems (PAY) $8.87 $8.37 09/30/2011 5.96% 8.06%
MROE 10/06/2010 Old National Bancorp (ONB) $15.16 $14.37 03/31/2011 5.50% 23.06%
SHMR 10/15/2010 Essilor (N/A) $14.50 $13.75 06/30/2011 5.45% 11.18%
PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $27.75 $26.32 03/31/2011 5.45% 22.85%
TCM 11/01/2010 Hanmax Investment Limited (N/A) $4.50 $4.27 03/31/2011 5.39% 22.60%

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 $7.40 326,685 06/30/2011 69.04% 141.57%
+ TLCR 06/07/2010 Grifols (GRF.MC) Cash Plus Stock $3.4 billion $27.80 $23.30 205,953 03/31/2011 19.33% 81.09%
+ DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $55.97 $47.26 254,011 03/31/2011 18.43% 77.33%
+ NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) All Stock $98 million $0.61 $0.56 2,197,007 06/30/2011 8.77% 17.99%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $27.35 13,594 09/30/2011 6.03% 8.16%
+ HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $8.87 $8.37 352,957 09/30/2011 5.96% 8.06%
+ MROE 10/06/2010 Old National Bancorp (ONB) All Stock $83.5 million $15.16 $14.37 70,631 03/31/2011 5.50% 23.06%
+ SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $13.75 5,803 06/30/2011 5.45% 11.18%
+ PVG 09/21/2010 Penn Virginia Resource Partners (PVR) All Stock $954 million $27.75 $26.32 75,436 03/31/2011 5.45% 22.85%
+ TCM 11/01/2010 Hanmax Investment Limited (N/A) All Cash N/A $4.50 $4.27 18,950 03/31/2011 5.39% 22.60%
+ MAJC 09/21/2010 Bayside Capital Partners (N/A) All Cash $7.8 million $4.50 $4.27 1,799 03/31/2011 5.39% 22.60%
+ CRXL 10/06/2010 Johnson & Johnson (JNJ) All Cash $2.41 billion $32.94 $31.33 49,497 03/31/2011 5.14% 21.56%
+ AAI 09/27/2010 Southwest Airlines (LUV) Cash Plus Stock $1.4 billion $7.75 $7.39 3,176,035 03/31/2011 4.87% 20.44%
+ LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $13.77 $13.14 70,025 06/30/2011 4.77% 9.78%
+ MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $7.24 $6.92 6,525,394 07/31/2011 4.57% 7.99%
+ ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) All Stock $74 million $12.51 $12.02 11,936 03/31/2011 4.08% 17.10%
+ MFE 08/19/2010 Intel Corporation (INTC) All Cash $7.68 billion $48.00 $46.31 589,041 06/30/2011 3.65% 7.48%
+ MCCC 11/15/2010 Chief Executive Rocco Commisso (N/A) All Cash $600 million $8.75 $8.47 83,608 06/30/2011 3.31% 6.78%
+ NOVL 11/22/2010 Attachment Corporation (N/A) All Cash $2.2 billion $6.10 $5.92 2,499,673 03/31/2011 3.04% 12.76%
+ WL 11/01/2010 M & T Bank Corporation (MTB) All Stock $351 million $4.47 $4.34 672,206 06/30/2011 3.04% 6.23%
+ ADAM 08/30/2010 Ebix Inc. (EBIX) All Stock $66 million $7.39 $7.18 99,211 12/31/2010 2.92% 0.00%
+ WTNY 12/22/2010 Hancock Holding Company (HBHC) All Stock $1.5 billion $14.56 $14.15 686,551 06/30/2011 2.92% 5.99%
+ BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $89.40 1,563,482 06/30/2011 2.91% 5.96%
+ ACL 12/15/2010 Novartis (NVS) All Cash $12.9 billion $168.00 $163.40 355,648 06/30/2011 2.82% 5.77%
+ VCGH 11/10/2010 Company's chairman of the Board, CEO, President and COO (N/A) All Cash $37 million $2.25 $2.19 72,220 03/31/2011 2.74% 11.49%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $51.25 $49.92 232,767 09/30/2011

2.66%

3.60%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) Cash Plus Stock $1.5 billion $15.38 $14.98 359,333 05/15/2011 2.66% 7.35%
+ AYE 02/11/2010 FirstEnergy (FE) All Stock $8.5 billion $24.69 $24.24 954,478 03/31/2011 1.87% 7.83%
+ OPTC 11/11/2010 TKH Group (N/A) All Cash N/A $2.45 $2.41 17,500 03/31/2011 1.66% 6.96%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $7.69 $7.58 172,417 09/30/2011 1.46% 1.98%
+ EURX 12/01/2010 Axcan Holdings, Inc. (N/A) All Cash $583 million $12.00 $11.83 35,240 06/30/2011 1.44% 2.95%
+ KG 10/12/2010 Pfizer Inc. (PFE) All Cash $3.6 billion $14.25 $14.05 4,101,496 03/31/2011 1.42% 5.97%
+ OCNW 09/16/2010 Calix Inc. (CALX) Cash Plus Stock $171 million $8.78 $8.66 65,744 12/31/2010 1.35% 0.00%
+ JAS 12/23/2010 affiliate of Leonard Green & Partners LP (N/A) All Cash $1.6 billion $61.00 $60.22 285,284 06/30/2011 1.30% 2.66%
+ ACV 09/27/2010 Unilever PLC (N/A) All Cash $3.7 billion $37.50 $37.04 545,473 03/31/2011 1.24% 5.21%
+ VOLT 11/29/2010 Mellanox Technologies, Ltd. (MLNX) All Cash $176 million $8.75 $8.65 57,056 03/31/2011

1.16%

4.85%
+ LDSH 11/17/2010 Allegheny Technologies (ATI) Cash Plus Stock $778 million $49.14 $48.62 133,869 03/31/2011 1.07% 4.49%
+ DLM 11/25/2010 Kohlberg Kravis Roberts & Co (KKR) All Cash $4 billion $19.00 $18.80 2,599,735 03/31/2011 1.06% 4.46%
+ Q 04/22/2010 Century Link (CTL) All Stock $10.6 billion $7.68 $7.61 3,391,770 04/21/2011

0.96%

3.23%
+ MIGP 12/01/2010 United Fire & Casualty (UFCS) All Cash $191 million $28.25 $27.99 1,523 03/31/2011 0.93% 3.90%
+ BJGP 10/28/2010 Sanofi – aventis (N/A) All Cash $520.6 million $10.00 $9.91 162,292 03/31/2011 0.91% 3.81%
+ CTV 10/25/2010 Carlyle (N/A) All Cash $3 billion $31.50 $31.22 1,413,098 03/31/2011 0.90% 3.76%
+ JCG 11/23/2010 private equity firms TPG Capital and Leonard Green & Partners (N/A) All Cash $3 billion $43.50 $43.14 334,928 03/31/2011

0.83%

3.50%
+ CPII 11/26/2010 Veritas Capital (N/A) All Cash $525 million $19.50 $19.35 42,268 12/31/2069 0.78% 0.01%
+ ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.91 1,041,295 03/31/2011 0.76% 3.17%
+ BEZ 11/29/2010 ABB Ltd (ABB) All Cash $4.2 billion $63.50 $63.04 278,090 03/31/2011 0.73% 3.06%
+ MATK 12/21/2010 DSM (N/A) All Cash $1,087 million $31.50 $31.30 716,223 06/30/2011 0.64% 1.31%
+ FMR 10/28/2010 Fairfax Financial Holdings (FRFHF.PK) All Cash $294 million $16.50 $16.40 44,974 03/31/2011 0.61% 2.56%
+ SVR 10/28/2010 Carlyle (N/A) All Cash $2.6 billion $31.00 $30.85 548,787 03/31/2011 0.49% 2.04%
+ DNEX 12/13/2010 Thermo Fisher Scientific Inc. (TMO) All Cash $2.1 billion $118.50 $118.01 54,415 03/31/2011

0.42%

1.74%
+ ROAC 10/18/2010 Swenson Granite Co. (N/A) All Cash $39 million $5.25 $5.23 2,300 03/31/2011 0.38% 1.60%
+ ARTG 11/02/2010 Oracle (ORCL) All Cash $1 billion $6.00 $5.98 3,494,210 03/31/2011 0.33% 1.40%
+ CYPB 12/15/2010 Ramius LLC & Royalty Pharma (N/A) All Cash $255 million $6.50 $6.48 427,303 01/31/2011 0.31% 4.02%
+ APSG 12/20/2010 Raytheon Company (RTN) All Cash N/A $38.00 $37.89 215,312 03/31/2011 0.29% 1.22%
+ NUHC 09/20/2010 Arrow Electronics (ARW) All Cash $130 million $7.00 $6.98 42,684 12/31/2010 0.29% 0.00%
+ TTES 10/06/2010 Robbins & Myers Inc. (RBN) Cash Plus Stock $422 million $39.94 $39.83 29,829 12/31/2010 0.27% 0.00%
+ LCRD 12/20/2010 ASSA ABLOY (N/A) All Cash $80 million $6.25 $6.25 149,282 03/31/2011 0.00% 0.00%
+ CGC 10/01/2010 Gammon Gold (GRS) Cash Plus Stock $288 million $5.06 $5.07 498,400 12/31/2010 -0.27% 33.19%
+ TOD 12/23/2010 Vigor Industrial LLC (N/A) All Cash $130 million $22.27 $22.39 45,789 03/31/2011 -0.54% -2.25%
+ RAE 09/20/2010 Battery Ventures (N/A) All Cash $95 million $1.60 $1.61 70,506 12/31/2010 -0.62% 75.57%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $41.83 $42.19 181,475 09/30/2011 -0.86% -1.16%
+ ATLS 11/09/2010 Chevron Coproation (CVX) All Cash $4.3 billion $43.34 $43.96 163,293 03/31/2011 -1.41% -5.92%
+ DYN 12/15/2010 Icahn Enterprises LP (IEP) All Cash $665 million $5.50 $5.62 1,135,572 03/31/2011

-2.14%

-8.96%
+ DVD 09/27/2010 Dover Downs Gaming & Entertainment Inc (DDE) All Stock N/A $1.70 $1.78 11,797 12/31/2010 -4.30% 523.58%
+ MTXX 12/14/2010 H.I.G. Capital, LLC (N/A) All Cash $75.2 million $8.00 $8.46 194,880 03/31/2011 -5.44% -22.81%
+ SNIC 12/23/2010 Rovi Corporation (ROVI) All Cash $720 million $14.00 $15.01 1,126,059 03/31/2011 -6.73% -28.23%
+ GIW 10/25/2010 Community Bank System (CBU) All Cash $101.8 million $9.50 $10.1999 2,600 02/15/2011 -6.86% -58.25%
+ STU 09/17/2010 Discover Financial Services (N/A) All Cash N/A $30.00 $32.44 725,319 12/31/2010 -7.52% 915.13%
+ CADE 10/06/2010 Community Bancorp LLC (N/A) All Stock $38 million $2.25 $2.46 20,322 03/31/2011 -8.68% -36.41%
+ DDMX 10/01/2010 Greenbriar Equity Group (N/A) All Cash $210 million $21.25 $24.76 39,640 02/15/2011 -14.18% -120.33%
+ ALY 08/12/2010 Seawell (N/A) All Cash $890 million $4.25 $7.09 309,775 12/31/2010 -40.06% 4873.53%
+ UAM 12/31/2010 CVS Caremark Corporation (CVS) All Cash $1.25 billion N/A $20.45 N/A 06/30/2010 N/A N/A

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