Merger Arbitrage Mondays – February 28, 2011

  • February 28, 2011

Merger activity increased last week with six 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 201129
Total Number of Deals Not Completed in 20111
Total Number of Pending Deals
Cash Deals44
Stock Deals23
Stock & Cash Deals12
Total Number of Pending Deals79

New Deals:

  1. The acquisition of Zoran Corporation (ZRAN) by CSR.PLC for $679 million or ADRs equivalent to 1.85 shares of CSR common stock per Zoran share held in an all stock deal.
  2. The acquisition of Caraco Pharmaceutical Laboratories (CPD) by Sun Pharmaceutical Industries for  $5.25 per share in cash.
  3. The acquisition of Tollgrade Communications (TLGD) by Golden Gate Capital for $137 million or $10.10 per share in cash.
  4. The acquisition of Clinical Data (CLDA) by Forest Laboratories (FRX) for $1.2 billion or $30.00 per share in cash plus contingent consideration of up to $6.00 per share that may be paid upon achievement of certain milestones.
  5. The acquisition of Frontier Oil (FTO) by Holly Corporation (HOC) for $3 billion or 0.4811 Holly shares for each share of Frontier common stock in an all stock deal that is said to be a “merger of equals”. Frontier plans to pay a $0.28 per share special dividend on March 21, 2011 to all Frontier shareholders of record on March 7, 2011.  Frontier also plans to reinstate its regular quarterly dividend of $0.06 per share, which will also be payable on March 21, 2011 to shareholders of record on March 7, 2011.
  6. The acquisition of Duncan Energy Partners (DEP) by Enterprise Products Partners (EPD) for 0.9545 Enterprise common units for each issued and outstanding publicly-held Duncan Energy Partners common unit in an all stock deal.

Closed Deals:

  1. The acquisition of Occam Networks (OCNW) by Calix (CALX) on February 23, 2011
  2. The acquisition of Allis-Chalmers Energy Inc. (ALY) by Seawell Limited on February 23, 2011
  3. The acquisition of Dynamex (DDMX) by TransForce on February 23, 2011
  4. The acquisition of BMP Sunstone Corporation (BJGP) by Sanofi-aventis on February 24, 2011
  5. The acquisition of Allegheny Energy (AYE) by FirstEnergy (FE) on February 25, 2011

Updated Deals:

  1. Dynegy (DYN) terminated its merger agreement with an affiliate of IEP on February 21, 2011
  2. Conexant Systems (CNXT) terminated its merger agreement with Standard Microsystems (SMSC) and agreed to be acquired by Golden Gate Capital for $2.40 per share in cash on February 23, 2011
  3. J. Crew Group (JCG) to file investor presentation in response to flawed recommendation and urges shareholders to vote FOR acquisition on March 1, 2011
  4. Novell (NOVL) and CPTN received a request for additional information from the Antitrust Division of the United States Department of Justice regarding the patent sale.

Top 10 Deals with largest spreads:





LTXC11/18/2010Verigy Ltd (VRGY)$12.46$9.2306/30/2011


TLCR06/07/2010Grifols (GRF.MC)$29.39$24.9303/31/2011 17.89% 210.62%
NHP02/28/2011Ventas Inc. (VTR)$44.99$38.9609/30/2011 15.47% 26.38%
TAM01/19/2011LAN Airlines S.A. (LFL)$24.25$21.1809/30/2011 14.48% 24.69%
MAJC09/21/2010Bayside Capital Partners (N/A)$4.50$4.1503/31/2011 8.43% 99.30%
AAI09/27/2010Southwest Airlines (LUV)$7.75$7.3103/31/2011 6.02% 70.87%
SHMR10/15/2010Essilor (N/A)$14.50$13.697606/30/2011 5.86% 17.53%
DNBK01/20/2011People's United Financial Inc. (PBCT)$23.00$21.7806/30/2011 5.60% 16.76%
PVG09/21/2010Penn Virginia Resource Partners (PVR)$27.88$26.5603/31/2011


DTG04/26/2010Avis (CAR)$55.65$53.17103/31/2011 4.66% 54.90%

List of all pending deals:

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



+LTXC11/18/2010Verigy Ltd (VRGY)All Stock$422 million$12.46$9.2312,66206/30/2011 35.00% 104.72%
+TLCR06/07/2010Grifols (GRF.MC)Cash Plus Stock$3.4 billion$29.39$24.9315,57103/31/2011 17.89% 210.62%
+NHP02/28/2011Ventas Inc. (VTR)All Stock$7.4 billion$44.99$38.964,09909/30/2011 15.47% 26.38%
+TAM01/19/2011LAN Airlines S.A. (LFL)All StockN/A$24.25$21.183,40009/30/2011 14.48% 24.69%
+MAJC09/21/2010Bayside Capital Partners (N/A)All Cash$7.8 million$4.50$4.15N/A03/31/2011 8.43% 99.30%
+AAI09/27/2010Southwest Airlines (LUV)Cash Plus Stock$1.4 billion$7.75$7.31354,79403/31/2011 6.02% 70.87%
+SHMR10/15/2010Essilor (N/A)All Cash$130 million$14.50$13.69761,44606/30/2011 5.86% 17.53%
+DNBK01/20/2011People's United Financial Inc. (PBCT)All Cash$493 million$23.00$21.78N/A06/30/2011 5.60% 16.76%
+PVG09/21/2010Penn Virginia Resource Partners (PVR)All Stock$954 million$27.88$26.5617,42803/31/2011 4.97% 58.56%
+DTG04/26/2010Avis (CAR)Cash Plus Stock$1.56 billion$55.65$53.17112,70103/31/2011 4.66% 54.90%
+MI12/17/2010BMO Financial Group (BMO)All Stock$4.1 billion$7.96$7.67N/A07/31/2011 3.77% 9.00%
+HYC11/17/2010Verifone Systems (PAY)All Stock$485 million$10.50$10.137,36809/30/2011 3.69% 6.30%
+ROME10/12/2010Berkshire Hills Bancorp (BHLB)All Stock$74 million$12.61$12.20N/A03/31/2011 3.37% 39.73%
+NOVL11/21/2010Attachment Corporation (N/A)All Cash$2.2 billion$6.10$5.9105184,07104/30/2011 3.21% 19.18%
+PNNW11/12/2010City of Nashua (N/A)All Cash$138 million$29.00$28.12N/A09/30/2011 3.13% 5.34%
+LEGC12/21/2010Berkshire Hills Bancorp (BHLB)Cash Plus Stock$108 million$13.87$13.45N/A06/30/2011 3.11% 9.30%
+PGN01/10/2011Duke Energy Corporation (DUK)All Stock$13.7 billion$46.55$45.30N/A12/31/2011 2.77% 3.30%
+VCGH11/10/2010Company's chairman of the Board, CEO, President and COO (N/A)All Cash$37 million$2.25$2.2075003/31/2011 2.27% 26.76%
+MEE01/29/2011Alpha Natural Resources, Inc. (ANR)Cash Plus Stock$8.5 billion$65.43$63.99N/A06/30/2011 2.25% 6.74%
+DEP02/23/2011Enterprise Products Partners (EPD)All StockN/A$41.43$40.54N/A12/31/2069 2.21% 0.04%
+TCM11/01/2010Hanmax Investment Limited (N/A)All CashN/A$4.50$4.4124,51503/31/2011 2.04% 24.03%
+GIW10/25/2010Community Bank System (CBU)All Cash$101.8 million$9.50$9.3244103/31/2011


+ACL12/15/2010Novartis (NVS)All Cash$12.9 billion$168.00$164.941,30006/30/2011 1.86% 5.55%
+SVLF02/03/2011Cerberus Capital Management (N/A)All Cash$94 million$2.50$2.46N/A04/15/2011 1.63% 12.90%
+HUGH02/14/2011EchoStar Corp (SATS)All Cash$2 billion$60.70$59.74N/A12/31/2011 1.61% 1.92%
+PDE02/07/2011Ensco plc (ESV)Cash Plus Stock$7.31 billion$41.78$41.1980006/30/2011 1.43% 4.28%
+EMS02/14/2011Clayton, Dubilier & Rice (N/A)All Cash$3 billion$64.00$63.11N/A06/30/2011 1.41% 4.22%
+SBIB01/18/2011Comerica Incorporated (CMA)All Stock$1.027 billion$9.13$9.01N/A06/30/2011 1.37% 4.11%
+NAL08/19/2010First Niagara Financial Group (FNFG)Cash Plus Stock$1.5 billion$15.91$15.7013,43605/15/2011 1.31% 6.30%
+CNXT02/23/2011Golden Gate Capital (N/A)All CashN/A$2.40$2.3782,80506/30/2011 1.27% 3.79%
+CPD02/22/2011Sun Pharmaceutical Industries ltd (N/A)All CashN/A$5.25$5.19N/A12/31/2011 1.16% 1.38%
+TLGD02/22/2011Golden Gate Capital (N/A)All Cash$137 million$10.10$9.9927,29106/30/2011 1.10% 3.29%
+BUCY11/15/2010Caterpillar Inc (CAT)All Cash$8.6 billion$92.00$91.0843,51406/30/2011 1.01% 3.02%
+RHB02/08/2011Kindred Healthcare (KND)Cash Plus Stock$877 million$37.72$37.36N/A06/30/2011 0.97% 2.91%
+XETA02/09/2011PAETEC Holding Corp (PAET)All Cash$61 million$5.50$5.45N/A04/30/2011 0.92% 5.49%
+ACV09/27/2010Unilever PLC (N/A)All Cash$3.7 billion$37.50$37.2162,18203/31/2011 0.78% 9.18%
+ID09/20/2010Safran (N/A)All Cash$1.1 billion$12.00$11.9119,24403/31/2011 0.76% 8.90%
+BEC02/07/2011Danaher (DHR)All Cash$6.8 billion$83.50$82.92N/A06/30/2011 0.70% 2.09%
+PPD01/31/2011MidOcean Partners (N/A)All Cash$650 million$66.50$66.081,83107/31/2011 0.64% 1.52%
+NOVA01/21/2011Surgery Partners (N/A)All Cash$214 million$13.25$13.171,50006/30/2011 0.61% 1.82%
+LZR02/07/2011Universal Hospital Services (N/A)All Cash$70 million$8.46$8.41N/A04/30/2011 0.59% 3.56%
+CLFC12/09/2010Nara Bancorp Inc. (NARA)All Stock$285.7 million$7.85$7.81N/A09/30/2011


+ATHR01/05/2011QUALCOMM Incorporated (QCOM)All Cash$3.1 billion$45.00$44.77N/A06/30/2011 0.51% 1.54%
+DNEX12/13/2010Thermo Fisher Scientific Inc. (TMO)All Cash$2.1 billion$118.50$117.90N/A03/31/2011 0.51% 5.99%
+PLA01/10/2011Icon Acquisition Holdings, L.P. (N/A)All CashN/A$6.15$6.12N/A03/31/2011 0.49% 5.77%
+Q04/22/2010Century Link (CTL)All Stock$10.6 billion$6.73$6.70684,21004/21/2011


+JAS12/23/2010affiliate of Leonard Green & Partners LP (N/A)All Cash$1.6 billion$61.00$60.74N/A03/31/2011 0.43% 5.04%
+CPEX01/04/2011FCB I Holdings Inc. (N/A)All CashN/A$27.25$27.14N/A06/30/2011 0.41% 1.21%
+CADE10/06/2010Community Bancorp LLC (N/A)All Cash$38 million$2.50$2.49N/A03/31/2011


+MIGP12/01/2010United Fire & Casualty (UFCS)All Cash$191 million$28.25$28.1420003/31/2011 0.39% 4.60%
+CRXL10/06/2010Johnson & Johnson (JNJ)All Cash$2.41 billion$34.26$34.131,54003/31/2011 0.37% 4.36%
+TMRK01/27/2011Verizon Communications Inc. (VZ)All Cash$1.4 billion$19.00$18.9410003/31/2011


+DLM11/25/2010Kohlberg Kravis Roberts & Co (KKR)All Cash$4 billion$19.00$18.95103,66003/31/2011 0.26% 3.11%
+JCG11/23/2010private equity firms TPG Capital and Leonard Green & Partners (N/A)All Cash$3 billion$43.50$43.42339,89403/31/2011 0.18% 2.17%
+WL11/01/2010M & T Bank Corporation (MTB)All Stock$351 million$4.53$4.5237,19506/30/2011 0.15% 0.46%
+GXDX01/24/2011Novartis AG (NVS)All Cash$470 million$25.00$24.98N/A06/30/2011 0.08% 0.24%
+MFE08/19/2010Intel Corporation (INTC)All Cash$7.68 billion$48.00$47.9780,86306/30/2011 0.06% 0.19%
+HRLY02/07/2011Kratos Defense & Security Solutions, Inc. (KTOS)All Cash$270 million$19.00$18.99N/A03/31/2011 0.05% 0.62%
+KG10/12/2010Pfizer Inc. (PFE)All Cash$3.6 billion$14.25$14.2523,80103/31/2011 0.00% 0.00%
+GAS12/07/2010AGL Resources Inc. (AGL)Cash Plus Stock$2.4 billion$52.83$52.8319,21009/30/2011 -0.01% -0.02%
+WTNY12/22/2010Hancock Holding Company (HBHC)All Stock$1.5 billion$14.15$14.15N/A06/30/2011 -0.03% -0.10%
+NGAS12/27/2010Magnum Hunter Resources Corp. (MHR)All Stock$98 million$0.58$0.5849N/A06/30/2011 -0.05% -0.16%
+ABBC01/26/2011Susquehanna Bancshares, Inc. (SUSQ)All Stock$273 million$12.67$12.70N/A09/30/2011 -0.22% -0.38%
+RVI02/08/2011DSW Inc (DSW)All StockN/A$17.10$17.15N/A06/30/2011 -0.31% -0.91%
+PLD01/31/2011AMB Property Corporation (AMB)All StockN/A$15.74$15.85N/A06/30/2011 -0.72% -2.16%
+SSCC01/23/2011Rock-Tenn Co. (RKT)Cash Plus Stock$3.5 billion$38.40$38.70N/A06/30/2011 -0.77% -2.32%
+MCCC11/15/2010Chief Executive Rocco Commisso (N/A)All Cash$600 million$8.75$8.824,64806/30/2011 -0.79% -2.37%
+LDSH11/17/2010Allegheny Technologies (ATI)Cash Plus Stock$778 million$53.76$54.243,98803/31/2011


+CLDA02/22/2011Forest Laboratories Inc. (FRX)All Cash$1.2 billion$30.00$30.3030006/30/2011 -0.99% -2.96%
+ANSW02/03/2011AFCV Holdings LLC (N/A)All Cash$127 million$10.50$10.638,12506/30/2011 -1.22% -3.66%
+GENZ02/16/2011Sanofi-Aventis (SNY)All Cash$20.1 billion$74.00$75.391,50006/15/2011 -1.84% -6.29%
+CGC10/01/2010Gammon Gold (GRS)Cash Plus Stock$288 million$5.42$5.5217,30203/31/2011 -1.89% -22.27%
+RAE01/18/2011Vector Capital (N/A)All CashN/A$1.75$1.79N/A06/30/2011 -2.23% -6.69%
+NST10/18/2010Northeast Utilities (NU)All Stock$4.17 billion$43.55$44.9728,26809/30/2011 -3.17% -5.40%
+FTO02/22/2011Holly Corporation (HOC)All Stock$3 billion$26.80$28.035,07009/30/2011 -4.38% -7.47%
+LAB02/17/2011Cowen Group (COWN)All Stock$192.8 millionN/A$4.19N/A07/31/2011 N/A N/A
+NYX02/15/2011Deutsche Boerse (N/A)All StockN/AN/A$37.0010012/31/2011 N/A N/A
+UAM12/31/2010CVS Caremark Corporation (CVS)All Cash$1.25 billionN/A$20.78N/A06/30/2011 N/A N/A
+ZRAN02/21/2011CSR PLC (N/A)All Stock$679 millionN/A$11.22N/A06/30/2011 N/A N/A