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Merger Arbitrage Mondays – January 31, 2011

  • January 31, 2011

Merger activity increased last week with four new deals announced and two deasl 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 201112
Total Number of Pending Deals
Cash Deals45
Stock Deals18
Stock & Cash Deals10
Special Conditions1
Total Number of Pending Deals74

New Deals:

  1. The acquisition of Genoptix, Inc. (GXDX) by Novartis AG (NVS) for $25 per share in cash.
  2. The acquisition of Abington Bancorp Inc. (ABBC) by Susquehanna Bancshares, Inc. (SUSQ). Under terms of the agreement, Abington shareholders will receive 1.32 shares of Susquehanna common stock for each share of Abington common stock on the completion of merger.
  3. The acquisition of Terremark Worldwide, Inc. (TMRK) by Verizon Communications Inc. (VZ) for $19 per share in cash.
  4. The acquisition of Massey Energy Co. (MEE) by Alpha Natural Resources, Inc. (ANR). The deal is expected to close in mid-2011 for $8.5 billion. Under the terms of the deal, Massey stockholders will receive 1.025 shares of Alpha common stock and $10.00 in cash for each share they own.

The spread on the Massey Energy (MEE) is large because the deal was announced over the weekend and the customary pop will occur Monday morning.

It was interesting to see that the spread on the Abington Bancorp deal is  just 1.47% now but the spread on last week’s bank deal with People’s United Financial Inc (PBCT) acquiring Danver’s Bancorp (DNBK) has actually expanded to 6.68% or 16.14% annualized.

Closed Deals:

  1. The acquistion of Baldor Electric Co. (BEZ) by ABB Ltd. (ABB) on January 27, 2011.
  2. The acquisition of Optelecom – NKF, Inc (OPTC) by TKH Group on January 28, 2011.

Top 10 Deals with largest spreads:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnu.

Profit

LTXC11/18/2010Verigy Ltd (VRGY)$12.62$8.6406/30/201146.11%111.46%
MEE01/29/2011Alpha Natural Resources, Inc. (ANR)$69.33$57.2306/30/201121.14%51.09%
TLCR06/07/2010Grifols (GRF.MC)$28.77$24.2103/31/201118.83%114.54%
DTG04/26/2010Avis (CAR)$54.90$47.7003/31/201115.10%91.88%
TAM01/19/2011LAN Airlines S.A. (LFL)$25.51$23.4409/30/20118.81%13.24%
DNBK01/20/2011People’s United Financial Inc. (PBCT)$23.00$21.5606/30/20116.68%16.14%
MAJC09/21/2010Bayside Capital Partners (N/A)$4.50$4.224403/31/20116.52%39.69%
SHMR10/15/2010Essilor (N/A)$14.50$13.6706/30/20116.07%14.68%
CNXT01/10/2011Standard Microsystems Corp. (SMSC)$2.16$2.0506/30/20115.21%12.60%
NGAS12/27/2010Magnum Hunter Resources Corp. (MHR)$0.58$0.55506/30/20115.18%12.52%

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$12.62$8.641,405,63306/30/201146.11%111.46%
+MEE01/29/2011Alpha Natural Resources, Inc. (ANR)Cash Plus Stock$8.5 billion$69.33$57.238,069,64506/30/201121.14%51.09%
+TLCR06/07/2010Grifols (GRF.MC)Cash Plus Stock$3.4 billion$28.77$24.211,836,88403/31/201118.83%114.54%
+DTG04/26/2010Avis (CAR)Cash Plus Stock$1.56 billion$54.90$47.70286,41203/31/201115.10%91.88%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$25.51$23.44569,00509/30/20118.81%13.24%
+DNBK01/20/2011People’s United Financial Inc. (PBCT)All Cash$493 million$23.00$21.56226,43406/30/20116.68%16.14%
+MAJC09/21/2010Bayside Capital Partners (N/A)All Cash$7.8 million$4.50$4.224492403/31/20116.52%39.69%
+SHMR10/15/2010Essilor (N/A)All Cash$130 million$14.50$13.6741,25006/30/20116.07%14.68%
+CNXT01/10/2011Standard Microsystems Corp. (SMSC)Special Conditions$284 million$2.16$2.051,550,26606/30/20115.21%12.60%
+NGAS12/27/2010Magnum Hunter Resources Corp. (MHR)All Stock$98 million$0.58$0.555997,89206/30/20115.18%12.52%
+AAI09/27/2010Southwest Airlines (LUV)Cash Plus Stock$1.4 billion$7.75$7.374,138,10403/31/20115.16%31.37%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)All Stock$954 million$27.19$26.11145,13403/31/20114.12%25.05%
+MI12/17/2010BMO Financial Group (BMO)All Stock$4.1 billion$7.26$6.9925,456,75407/31/20113.87%7.76%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$46.92$45.341,468,53012/31/20113.49%3.80%
+HYC11/17/2010Verifone Systems (PAY)All Stock$485 million$9.20$8.89414,44309/30/20113.46%5.20%
+PNNW11/12/2010City of Nashua (N/A)All Cash$138 million$29.00$28.0320,58509/30/20113.46%5.20%
+ALY08/12/2010Seawell (SEAW.OL)All Stock$890 million$7.63$7.392,557,98803/31/20113.26%19.81%
+ACL12/15/2010Novartis (NVS)All Cash$12.9 billion$168.00$162.951,687,18006/30/20113.10%7.49%
+GAS12/07/2010AGL Resources Inc. (AGL)Cash Plus Stock$2.4 billion$51.45$49.93513,79009/30/20113.05%4.57%
+CLFC12/09/2010Nara Bancorp Inc. (NARA)All Stock$285.7 million$7.45$7.24229,84709/30/20112.94%4.42%
+WTNY12/22/2010Hancock Holding Company (HBHC)All Stock$1.5 billion$13.73$13.35887,06606/30/20112.82%6.83%
+NAL08/19/2010First Niagara Financial Group (FNFG)Cash Plus Stock$1.5 billion$15.38$15.01648,07305/15/20112.45%8.52%
+RAE01/18/2011Vector Capital (N/A)All CashN/A$1.75$1.7136,54606/30/20112.34%5.65%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)All Stock$74 million$12.01$11.7478903/31/20112.27%13.80%
+LEGC12/21/2010Berkshire Hills Bancorp (BHLB)Cash Plus Stock$108 million$13.26$13.032,83506/30/20111.80%4.36%
+NOVL11/22/2010Attachment Corporation (N/A)All Cash$2.2 billion$6.10$6.002,759,63203/31/20111.67%10.14%
+Q04/22/2010Century Link (CTL)All Stock$10.6 billion$7.16$7.0527,236,38604/21/20111.54%6.94%
+WL11/01/2010M & T Bank Corporation (MTB)All Stock$351 million$4.44$4.37988,61106/30/20111.51%3.65%
+MCCC11/15/2010Chief Executive Rocco Commisso (N/A)All Cash$600 million$8.75$8.62257,36906/30/20111.51%3.65%
+ABBC01/26/2011Susquehanna Bancshares, Inc. (SUSQ)All Stock$273 million$12.63$12.45374,97609/30/20111.47%2.20%
+BUCY11/15/2010Caterpillar Inc (CAT)All Cash$8.6 billion$92.00$90.681,493,32806/30/20111.46%3.52%
+CRXL10/06/2010Johnson & Johnson (JNJ)All Cash$2.41 billion$33.68$33.2201187,12203/31/20111.38%8.37%
+TCM11/01/2010Hanmax Investment Limited (N/A)All CashN/A$4.50$4.4453,40003/31/20111.35%8.22%
+VCGH11/10/2010Company’s chairman of the Board, CEO, President and COO (N/A)All Cash$37 million$2.25$2.2222,36703/31/20111.35%8.22%
+CPEX01/04/2011FCB I Holdings Inc. (N/A)All CashN/A$27.25$26.8938,20006/30/20101.34%0.00%
+SBIB01/18/2011Comerica Incorporated (CMA)All Stock$1.027 billion$8.98$8.871,358,35706/30/20111.29%3.12%
+ADAM08/30/2010Ebix Inc. (EBIX)All Stock$66 million$7.03$6.9432,69812/31/20101.26%0.00%
+JAS12/23/2010affiliate of Leonard Green & Partners LP (N/A)All Cash$1.6 billion$61.00$60.28590,28506/30/20111.19%2.89%
+AYE02/11/2010FirstEnergy (FE)All Stock$8.5 billion$25.86$25.591,584,27203/31/20111.05%6.41%
+OCNW09/16/2010Calix Inc. (CALX)Cash Plus Stock$171 million$8.46$8.3756,48112/31/20101.05%0.00%
+ATHR01/05/2011QUALCOMM Incorporated (QCOM)All Cash$3.1 billion$45.00$44.542,277,12206/30/20111.03%2.50%
+VOLT11/29/2010Mellanox Technologies, Ltd. (MLNX)All Cash$176 million$8.75$8.67117,84103/31/20110.92%5.61%
+ACV09/27/2010Unilever PLC (N/A)All Cash$3.7 billion$37.50$37.17783,91203/31/20110.89%5.40%
+NOVA01/21/2011Surgery Partners (N/A)All Cash$214 million$13.25$13.13540,21006/30/20110.88%2.12%
+ID09/20/2010Safran (N/A)All Cash$1.1 billion$12.00$11.92574,16403/31/20110.67%4.08%
+MIGP12/01/2010United Fire & Casualty (UFCS)All Cash$191 million$28.25$28.0821,45003/31/20110.61%3.68%
+LDSH11/17/2010Allegheny Technologies (ATI)Cash Plus Stock$778 million$53.01$52.72123,81503/31/20110.55%3.32%
+BJGP10/28/2010Sanofi – aventis (N/A)All Cash$520.6 million$10.00$9.951,964,38503/31/20110.50%3.06%
+DLM11/25/2010Kohlberg Kravis Roberts & Co (KKR)All Cash$4 billion$19.00$18.914,215,85203/31/20110.48%2.90%
+CPII11/26/2010Veritas Capital (N/A)All Cash$525 million$19.50$19.4154,83303/31/20110.46%2.82%
+DDMX10/01/2010TransForce Inc. (TFI.TO)All Cash$210 million$25.00$24.8942,76202/15/20110.44%10.08%
+TMRK01/27/2011Verizon Communications Inc. (VZ)All Cash$1.4 billion$19.00$18.9237,335,58003/31/20110.42%2.57%
+DNEX12/13/2010Thermo Fisher Scientific Inc. (TMO)All Cash$2.1 billion$118.50$118.01101,66603/31/20110.42%2.53%
+CADE10/06/2010Community Bancorp LLC (N/A)All Cash$38 million$2.50$2.4930003/31/20110.40%2.44%
+EURX12/01/2010Axcan Holdings, Inc. (N/A)All Cash$583 million$12.00$11.96273,55706/30/20110.33%0.81%
+PLA01/10/2011Icon Acquisition Holdings, L.P. (N/A)All CashN/A$6.15$6.13436,13103/31/20110.33%1.98%
+FMR10/28/2010Fairfax Financial Holdings (FRFHF.PK)All Cash$294 million$16.50$16.4537,73803/31/20110.30%1.85%
+MATK12/21/2010DSM (N/A)All Cash$1,087 million$31.50$31.41768,73106/30/20110.29%0.69%
+MFE08/19/2010Intel Corporation (INTC)All Cash$7.68 billion$48.00$47.872,700,53306/30/20110.27%0.66%
+JCG11/23/2010private equity firms TPG Capital and Leonard Green & Partners (N/A)All Cash$3 billion$43.50$43.401,070,33103/31/20110.23%1.40%
+KG10/12/2010Pfizer Inc. (PFE)All Cash$3.6 billion$14.25$14.222,300,94303/31/20110.21%1.28%
+GXDX01/24/2011Novartis AG (NVS)All Cash$470 million$25.00$24.951,054,83306/30/20110.20%0.48%
+TOD12/23/2010Vigor Industrial LLC (N/A)All Cash$130 million$22.27$22.2425,04203/31/20110.13%0.82%
+APSG12/20/2010Raytheon Company (RTN)All CashN/A$38.00$37.985309,91703/31/20110.04%0.24%
+MTXX12/14/2010H.I.G. Capital, LLC (N/A)All Cash$75.2 million$8.00$8.0090,84303/31/20110.00%0.00%
+LCRD12/20/2010ASSA ABLOY (N/A)All Cash$80 million$6.25$6.25109,64103/31/20110.00%0.00%
+CGC10/01/2010Gammon Gold (GRS)Cash Plus Stock$288 million$4.74$4.74444,93512/31/2010-0.03%0.00%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$42.99$43.27473,51009/30/2011-0.64%-0.96%
+GIW10/25/2010Community Bank System (CBU)All Cash$101.8 million$9.50$9.575,70002/15/2011-0.73%-16.69%
+ATLS11/09/2010Chevron Coproation (CVX)All Cash$4.3 billion$43.34$44.03082,377,28303/31/2011-1.57%-9.54%
+SNIC12/23/2010Rovi Corporation (ROVI)All Cash$720 million$14.00$14.482,410,67703/31/2011-3.31%-20.17%
+SSCC01/23/2011Rock-Tenn Co. (RKT)All Cash$3.5 billion$35.00$37.374,926,49006/30/2011-6.34%-15.33%
+DYN12/15/2010Icahn Enterprises LP (IEP)All Cash$665 million$5.50$6.082,954,51603/31/2011-9.54%-58.03%
+UAM12/31/2010CVS Caremark Corporation (CVS)All Cash$1.25 billionN/A$20.211,621,44906/30/2010N/AN/A