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Merger Arbitrage Mondays – January 3, 2011

  • 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 2010144
Total Number of Deals Closed in 20111
Total Number of Deals That Did Not Complete in 20107
Total Number of Pending Deals
Cash Deals46
Stock Deals16
Stock & Cash Deals10
Total Number of Pending Deals72



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:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
LTXC11/18/2010Verigy Ltd (VRGY)$12.51$7.4006/30/2011 69.04% 141.57%
TLCR06/07/2010Grifols (GRF.MC)$27.80$23.3003/31/2011 19.33% 81.09%
DTG04/26/2010Avis (CAR)$55.97$47.2603/31/2011 18.43% 77.33%
NGAS12/27/2010Magnum Hunter Resources Corp. (MHR)$0.61$0.5606/30/2011 8.77% 17.99%
PNNW11/12/2010City of Nashua (N/A)$29.00$27.3509/30/2011 6.03% 8.16%
HYC11/17/2010Verifone Systems (PAY)$8.87$8.3709/30/2011 5.96% 8.06%
MROE10/06/2010Old National Bancorp (ONB)$15.16$14.3703/31/2011 5.50% 23.06%
SHMR10/15/2010Essilor (N/A)$14.50$13.7506/30/2011 5.45% 11.18%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$27.75$26.3203/31/2011 5.45% 22.85%
TCM11/01/2010Hanmax Investment Limited (N/A)$4.50$4.2703/31/2011 5.39% 22.60%

List of all pending deals:

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


 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$12.51$7.40326,68506/30/2011 69.04% 141.57%
+TLCR06/07/2010Grifols (GRF.MC)Cash Plus Stock$3.4 billion$27.80$23.30205,95303/31/2011 19.33% 81.09%
+DTG04/26/2010Avis (CAR)Cash Plus Stock$1.56 billion$55.97$47.26254,01103/31/2011 18.43% 77.33%
+NGAS12/27/2010Magnum Hunter Resources Corp. (MHR)All Stock$98 million$0.61$0.562,197,00706/30/2011 8.77% 17.99%
+PNNW11/12/2010City of Nashua (N/A)All Cash$138 million$29.00$27.3513,59409/30/2011 6.03% 8.16%
+HYC11/17/2010Verifone Systems (PAY)All Stock$485 million$8.87$8.37352,95709/30/2011 5.96% 8.06%
+MROE10/06/2010Old National Bancorp (ONB)All Stock$83.5 million$15.16$14.3770,63103/31/2011 5.50% 23.06%
+SHMR10/15/2010Essilor (N/A)All Cash$130 million$14.50$13.755,80306/30/2011 5.45% 11.18%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)All Stock$954 million$27.75$26.3275,43603/31/2011 5.45% 22.85%
+TCM11/01/2010Hanmax Investment Limited (N/A)All CashN/A$4.50$4.2718,95003/31/2011 5.39% 22.60%
+MAJC09/21/2010Bayside Capital Partners (N/A)All Cash$7.8 million$4.50$4.271,79903/31/2011 5.39% 22.60%
+CRXL10/06/2010Johnson & Johnson (JNJ)All Cash$2.41 billion$32.94$31.3349,49703/31/2011 5.14% 21.56%
+AAI09/27/2010Southwest Airlines (LUV)Cash Plus Stock$1.4 billion$7.75$7.393,176,03503/31/2011 4.87% 20.44%
+LEGC12/21/2010Berkshire Hills Bancorp (BHLB)Cash Plus Stock$108 million$13.77$13.1470,02506/30/2011 4.77% 9.78%
+MI12/17/2010BMO Financial Group (BMO)All Stock$4.1 billion$7.24$6.926,525,39407/31/2011 4.57% 7.99%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)All Stock$74 million$12.51$12.0211,93603/31/2011 4.08% 17.10%
+MFE08/19/2010Intel Corporation (INTC)All Cash$7.68 billion$48.00$46.31589,04106/30/2011 3.65% 7.48%
+MCCC11/15/2010Chief Executive Rocco Commisso (N/A)All Cash$600 million$8.75$8.4783,60806/30/2011 3.31% 6.78%
+NOVL11/22/2010Attachment Corporation (N/A)All Cash$2.2 billion$6.10$5.922,499,67303/31/2011 3.04% 12.76%
+WL11/01/2010M & T Bank Corporation (MTB)All Stock$351 million$4.47$4.34672,20606/30/2011 3.04% 6.23%
+ADAM08/30/2010Ebix Inc. (EBIX)All Stock$66 million$7.39$7.1899,21112/31/2010 2.92% 0.00%
+WTNY12/22/2010Hancock Holding Company (HBHC)All Stock$1.5 billion$14.56$14.15686,55106/30/2011 2.92% 5.99%
+BUCY11/15/2010Caterpillar Inc (CAT)All Cash$8.6 billion$92.00$89.401,563,48206/30/2011 2.91% 5.96%
+ACL12/15/2010Novartis (NVS)All Cash$12.9 billion$168.00$163.40355,64806/30/2011 2.82% 5.77%
+VCGH11/10/2010Company's chairman of the Board, CEO, President and COO (N/A)All Cash$37 million$2.25$2.1972,22003/31/2011 2.74% 11.49%
+GAS12/07/2010AGL Resources Inc. (AGL)Cash Plus Stock$2.4 billion$51.25$49.92232,76709/30/2011

2.66%

3.60%
+NAL08/19/2010First Niagara Financial Group (FNFG)Cash Plus Stock$1.5 billion$15.38$14.98359,33305/15/2011 2.66% 7.35%
+AYE02/11/2010FirstEnergy (FE)All Stock$8.5 billion$24.69$24.24954,47803/31/2011 1.87% 7.83%
+OPTC11/11/2010TKH Group (N/A)All CashN/A$2.45$2.4117,50003/31/2011 1.66% 6.96%
+CLFC12/09/2010Nara Bancorp Inc. (NARA)All Stock$285.7 million$7.69$7.58172,41709/30/2011 1.46% 1.98%
+EURX12/01/2010Axcan Holdings, Inc. (N/A)All Cash$583 million$12.00$11.8335,24006/30/2011 1.44% 2.95%
+KG10/12/2010Pfizer Inc. (PFE)All Cash$3.6 billion$14.25$14.054,101,49603/31/2011 1.42% 5.97%
+OCNW09/16/2010Calix Inc. (CALX)Cash Plus Stock$171 million$8.78$8.6665,74412/31/2010 1.35% 0.00%
+JAS12/23/2010affiliate of Leonard Green & Partners LP (N/A)All Cash$1.6 billion$61.00$60.22285,28406/30/2011 1.30% 2.66%
+ACV09/27/2010Unilever PLC (N/A)All Cash$3.7 billion$37.50$37.04545,47303/31/2011 1.24% 5.21%
+VOLT11/29/2010Mellanox Technologies, Ltd. (MLNX)All Cash$176 million$8.75$8.6557,05603/31/2011

1.16%

4.85%
+LDSH11/17/2010Allegheny Technologies (ATI)Cash Plus Stock$778 million$49.14$48.62133,86903/31/2011 1.07% 4.49%
+DLM11/25/2010Kohlberg Kravis Roberts & Co (KKR)All Cash$4 billion$19.00$18.802,599,73503/31/2011 1.06% 4.46%
+Q04/22/2010Century Link (CTL)All Stock$10.6 billion$7.68$7.613,391,77004/21/2011

0.96%

3.23%
+MIGP12/01/2010United Fire & Casualty (UFCS)All Cash$191 million$28.25$27.991,52303/31/2011 0.93% 3.90%
+BJGP10/28/2010Sanofi – aventis (N/A)All Cash$520.6 million$10.00$9.91162,29203/31/2011 0.91% 3.81%
+CTV10/25/2010Carlyle (N/A)All Cash$3 billion$31.50$31.221,413,09803/31/2011 0.90% 3.76%
+JCG11/23/2010private equity firms TPG Capital and Leonard Green & Partners (N/A)All Cash$3 billion$43.50$43.14334,92803/31/2011

0.83%

3.50%
+CPII11/26/2010Veritas Capital (N/A)All Cash$525 million$19.50$19.3542,26812/31/2069 0.78% 0.01%
+ID09/20/2010Safran (N/A)All Cash$1.1 billion$12.00$11.911,041,29503/31/2011 0.76% 3.17%
+BEZ11/29/2010ABB Ltd (ABB)All Cash$4.2 billion$63.50$63.04278,09003/31/2011 0.73% 3.06%
+MATK12/21/2010DSM (N/A)All Cash$1,087 million$31.50$31.30716,22306/30/2011 0.64% 1.31%
+FMR10/28/2010Fairfax Financial Holdings (FRFHF.PK)All Cash$294 million$16.50$16.4044,97403/31/2011 0.61% 2.56%
+SVR10/28/2010Carlyle (N/A)All Cash$2.6 billion$31.00$30.85548,78703/31/2011 0.49% 2.04%
+DNEX12/13/2010Thermo Fisher Scientific Inc. (TMO)All Cash$2.1 billion$118.50$118.0154,41503/31/2011

0.42%

1.74%
+ROAC10/18/2010Swenson Granite Co. (N/A)All Cash$39 million$5.25$5.232,30003/31/2011 0.38% 1.60%
+ARTG11/02/2010Oracle (ORCL)All Cash$1 billion$6.00$5.983,494,21003/31/2011 0.33% 1.40%
+CYPB12/15/2010Ramius LLC & Royalty Pharma (N/A)All Cash$255 million$6.50$6.48427,30301/31/2011 0.31% 4.02%
+APSG12/20/2010Raytheon Company (RTN)All CashN/A$38.00$37.89215,31203/31/2011 0.29% 1.22%
+NUHC09/20/2010Arrow Electronics (ARW)All Cash$130 million$7.00$6.9842,68412/31/2010 0.29% 0.00%
+TTES10/06/2010Robbins & Myers Inc. (RBN)Cash Plus Stock$422 million$39.94$39.8329,82912/31/2010 0.27% 0.00%
+LCRD12/20/2010ASSA ABLOY (N/A)All Cash$80 million$6.25$6.25149,28203/31/2011 0.00% 0.00%
+CGC10/01/2010Gammon Gold (GRS)Cash Plus Stock$288 million$5.06$5.07498,40012/31/2010 -0.27% 33.19%
+TOD12/23/2010Vigor Industrial LLC (N/A)All Cash $130 million$22.27$22.3945,78903/31/2011 -0.54% -2.25%
+RAE09/20/2010Battery Ventures (N/A)All Cash$95 million$1.60$1.6170,50612/31/2010 -0.62% 75.57%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$41.83$42.19181,47509/30/2011 -0.86% -1.16%
+ATLS11/09/2010Chevron Coproation (CVX)All Cash$4.3 billion$43.34$43.96163,29303/31/2011 -1.41% -5.92%
+DYN12/15/2010Icahn Enterprises LP (IEP)All Cash$665 million$5.50$5.621,135,57203/31/2011

-2.14%

-8.96%
+DVD09/27/2010Dover Downs Gaming & Entertainment Inc (DDE)All StockN/A$1.70$1.7811,79712/31/2010 -4.30% 523.58%
+MTXX12/14/2010H.I.G. Capital, LLC (N/A)All Cash$75.2 million$8.00$8.46194,88003/31/2011 -5.44% -22.81%
+SNIC12/23/2010Rovi Corporation (ROVI)All Cash$720 million$14.00$15.011,126,05903/31/2011 -6.73% -28.23%
+GIW10/25/2010Community Bank System (CBU)All Cash$101.8 million$9.50$10.19992,60002/15/2011 -6.86% -58.25%
+STU09/17/2010Discover Financial Services (N/A)All CashN/A$30.00$32.44725,31912/31/2010 -7.52% 915.13%
+CADE10/06/2010Community Bancorp LLC (N/A)All Stock$38 million$2.25$2.4620,32203/31/2011 -8.68% -36.41%
+DDMX10/01/2010Greenbriar Equity Group (N/A)All Cash$210 million$21.25$24.7639,64002/15/2011 -14.18% -120.33%
+ALY08/12/2010Seawell (N/A)All Cash$890 million$4.25$7.09309,77512/31/2010 -40.06% 4873.53%
+UAM12/31/2010CVS Caremark Corporation (CVS)All Cash$1.25 billionN/A$20.45N/A06/30/2010 N/A N/A