Merger Arbitrage Mondays – February 14, 2011

  • February 14, 2011

Merger activity increased last week with seven new deals announced and five 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 201119
Total Number of Pending Deals
Cash Deals46
Stock Deals19
Stock & Cash Deals12
Special Conditions1
Total Number of Pending Deals78

New Deals:

  1. The acquisition of Pride International (PDE) by Ensco (ESV) for $7.31 billion or 0.4778 newly-issued shares of Ensco plus $15.60 in cash for each share of Pride common stock in a cash plus stock deal.
  2. The acquisition of Beckman Coulter (BEC) by Danaher Corp (DHR) for $6.8 billion or $83.50 per share in cash.
  3. The acquisition of Rehabcare Group (RHB) by Kindred Healthhcare (KND) for $877 million or $26 in cash and 0.471 of a Kindred share for each RehabCare share in a cash plus stock deal.
  4. The acquisition of Retail Ventures (RVI) by DSW Inc (DSW) in an all stock deal where RVI shareholders will receive 0.435 DSW shares per each RVI share held. RVI is a listed company whose only operating business is its 62% stake in DSW.
  5. The acquisition of XETA Technologies (XETA) by PAETEC Holding Corp (PAET) for $61 million or $5.50 per share in cash. The companies expect the transaction to close within three months.
  6. The acquisition of Herley Industries (HRLY) by Kratos Defense & Security Solutions (KTOS) for $270 million or $19.00 per share in cash.
  7. The acquisition of Emergent Group (LZR) by Universal Hospital Services for $70 million or $8.46 per share in cash. The tender offer is expected to commence in March.


Closed Deals:

  1. The acquisition of Voltaire (VOLT) by Mellanox Technologies (MLNX) on February 07, 2011
  2. The acquisition of A.D.A.M. Inc. (ADAM) by Ebix Inc. (EBIX) on February 08, 2011
  3. The acquisition of First Mercury Financial Corporation (FMR) by Fairfax Financial Holdings Limited (FRFHF.PK) on February 09, 2011
  4. The acquisition of CPI International (CPII) by Veritas Capital on February 11, 2011
  5. The acquisition of Eurand NV (EURX) by Axcan Intermediate Holdings on February 11, 2011


Deal Updates:

  1. Chevron (CVX) to pay holders of Atlas Energy (ATLS) an additional 10 cents a share to settle litigation when its $3.59 billion purchase of the natural-gas producer is completed
  2. Conexant Systems Inc. (CNXT) shares jumped 17% to $2.46 on Tuesday, February 08, 2011 after receiving a takeover offer from Golden Gate Private Equity of $2.35 to $2.45 a share


Top 10 Deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnu.
Profit
LTXC11/18/2010Verigy Ltd (VRGY)$13.23$9.2906/30/2011 42.40% 113.79%
TLCR06/07/2010Grifols (GRF.MC)$29.47$24.9303/31/2011 18.21% 147.74%
TAM01/19/2011LAN Airlines S.A. (LFL)$25.90$22.2709/30/2011 16.31% 26.11%
DTG04/26/2010Avis (CAR)$55.93$51.5603/31/2011 8.48% 68.77%
DNBK01/20/2011People's United Financial Inc. (PBCT)$23.00$21.7406/30/2011 5.80% 15.55%
SHMR10/15/2010Essilor (N/A)$14.50$13.7406/30/2011 5.53% 14.85%
NGAS12/27/2010Magnum Hunter Resources Corp. (MHR)$0.55$0.526506/30/2011 5.41% 14.52%
AAI09/27/2010Southwest Airlines (LUV)$7.75$7.4103/31/2011 4.59% 37.22%
ROME10/12/2010Berkshire Hills Bancorp (BHLB)$12.53$12.0603/31/2011 3.92% 31.78%
MAJC09/21/2010Bayside Capital Partners (N/A)$4.50$4.3503/31/2011 3.45% 27.97%

List of all pending deals:

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