Merger Arbitrage Mondays – March 07, 2011

  • March 7, 2011

Merger activity decreased last week with four new deals announced and three 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 2011 31
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 45
Stock Deals 23
Stock & Cash Deals 12
Total Number of Pending Deals 70

New Deals:

  1. The acquisition of Nationwide Health Properties (NHP) by Ventas (VTR) for $7.4 billion in an all stock deal where NHP shareholders will receive a fixed exchange ratio of 0.7866 Ventas shares for each share of NHP common stock they own.
  2. The acquisition of America Service Group (ASGR) by Valitás Health Services for $250 million or $26.00 per share in cash.
  3. The acquisition of Global Defense Technology & Systems (GTEC) by an affiliate of Ares Management LLC for $315 million or $24.25 per share in cash.
  4. The acquisition of Cascade Financial Corp (CASB) by Opus Bank for $0.45 per share in cash. Opus Bank will pay approximately $16.25 million to retire Cascade Financial’s $39 million in preferred stock and associated warrants issued to the United States Department of the Treasury under the Treasury’s Capital Purchase Program, and $5.5 million in cash to the holders of Cascade Financial’s common stock.


Closed Deals:

  1. The acquisition of Martek (MATK) by Royal DSM KON on February 28, 2011
  2. The acquisition of King Pharma (KG) by Pfizer (PFE) on March 01, 2011
  3. The acquisition of McAfee (MFE) by Intel (INTC) on March 01, 2011


Updated Deals:

  1. Grifols and Talecris (TLCR) Announce the Outside Date of Their Merger Agreement has been Extended to June 30, 2011.
  2. On March 04, 2011, CPEX Pharmaceutical Partners (CPEXreceived a letter from Athyrium Capital Management LLC,  in response to recent incomplete and inaccurate statements by Mangrove Partners.
  3. CVS Caremark and Universal American (UAM) Announce Termination of Hart-Scott-Rodino Waiting Period on March 01, 2011.
  4. Mangrove Partners Questions the proposed sale of CPEX Pharmaceuticals (CPEX) and intends to vote ‘No’ on the merger on February 28, 2011.
  5. Zoran Corporation (ZRANissued an open letter to its stockholders on March 01, 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) $12.76 $9.39 06/30/2011

35.87%

113.86%
TLCR 06/07/2010 Grifols (GRF.MC) $29.69 $25.54 06/30/2011 16.23% 51.51%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $24.60 $21.70 09/30/2011 13.35% 23.54%
DNBK 01/20/2011 People's United Financial Inc. (PBCT) $23.00 $21.47 06/30/2011 7.13% 22.62%
AAI 09/27/2010 Southwest Airlines (LUV) $7.75 $7.28 03/31/2011 6.46% 98.19%
SHMR 10/15/2010 Essilor (N/A) $14.50 $13.6437 06/30/2011 6.28% 19.92%
PVG 09/21/2010 Penn Virginia Resource Partners (PVR) $28.34 $26.93 03/31/2011 5.24% 79.72%
MAJC 09/21/2010 Bayside Capital Partners (N/A) $4.50 $4.30 03/31/2011

4.65%

70.74%
NOVL 11/21/2010 Attachment Corporation (N/A) $6.10 $5.83 04/30/2011

4.63%

31.30%
MEE 01/29/2011 Alpha Natural Resources, Inc. (ANR) $68.19 $65.33 06/30/2011 4.38% 13.89%

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 $12.76 $9.39 242,078 06/30/2011 35.87% 113.86%
+ TLCR 06/07/2010 Grifols (GRF.MC) Cash Plus Stock $3.4 billion $29.68 $25.54 2,466,030 06/30/2011 16.22% 51.48%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $24.60 $21.70 983,657 09/30/2011 13.35% 23.54%
+ DNBK 01/20/2011 People's United Financial Inc. (PBCT) All Cash $493 million $23.00 $21.47 41,182 06/30/2011 7.13% 22.62%
+ AAI 09/27/2010 Southwest Airlines (LUV) Cash Plus Stock $1.4 billion $7.75 $7.28 1,357,534 03/31/2011 6.46% 98.19%
+ SHMR 10/15/2010 Essilor (N/A) All Cash $130 million $14.50 $13.6437 1,699 06/30/2011 6.28% 19.92%
+ PVG 09/21/2010 Penn Virginia Resource Partners (PVR) All Stock $954 million $28.34 $26.93 170,143 03/31/2011 5.24% 79.72%
+ MAJC 09/21/2010 Bayside Capital Partners (N/A) All Cash $7.8 million $4.50 $4.30 12,474 03/31/2011 4.65% 70.74%
+ NOVL 11/21/2010 Attachment Corporation (N/A) All Cash $2.2 billion $6.10 $5.83 3,217,305 04/30/2011 4.63% 31.30%
+ MEE 01/29/2011 Alpha Natural Resources, Inc. (ANR) Cash Plus Stock $8.5 billion $68.19 $65.33 4,388,216 06/30/2011 4.38% 13.89%
+ HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $11.48 $11.05 1,200,939 09/30/2011 3.89% 6.85%
+ MI 12/17/2010 BMO Financial Group (BMO) All Stock $4.1 billion $7.99 $7.70 5,719,257 07/31/2011 3.79% 9.48%
+ ROME 10/12/2010 Berkshire Hills Bancorp (BHLB) All Stock $74 million $12.45 $12.00 31,238 03/31/2011

3.73%

56.73%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.06 18,283 09/30/2011 3.35% 5.91%
+ NGAS 12/27/2010 Magnum Hunter Resources Corp. (MHR) All Stock $98 million $0.64 $0.615 3,677,763 06/30/2011 3.31% 10.50%
+ DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $56.26 $54.49 698,727 03/31/2011 3.25% 49.37%
+ LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $13.70 $13.30 10,182 06/30/2011 3.04% 9.66%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $7.73 $7.51 144,612 09/30/2011 2.98% 5.25%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $46.97 $45.70 1,502,681 12/31/2011 2.79% 3.40%
+ WTNY 12/22/2010 Hancock Holding Company (HBHC) All Stock $1.5 billion $13.82 $13.46 1,308,903 06/30/2011 2.67% 8.47%
+ NAL 08/19/2010 First Niagara Financial Group (FNFG) Cash Plus Stock $1.5 billion $15.70 $15.33 874,006 05/15/2011 2.39% 12.66%
+ NHP 02/28/2011 Ventas Inc. (VTR) All Stock $7.4 billion $41.56 $40.59 2,604,531 09/30/2011 2.38% 4.20%
+ DEP 02/23/2011 Enterprise Products Partners (EPD) All Stock N/A $41.14 $40.20 149,012 12/31/2069 2.34% 0.04%
+ TCM 11/01/2010 Hanmax Investment Limited (N/A) All Cash N/A $4.50 $4.41 3,320 03/31/2011 2.04% 31.04%
+ SBIB 01/18/2011 Comerica Incorporated (CMA) All Stock $1.027 billion $9.07 $8.91 798,881 06/30/2011 1.82% 5.78%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $53.65 $52.82 724,469 09/30/2011 1.57% 2.76%
+ HUGH 02/14/2011 EchoStar Corp (SATS) All Cash $2 billion $60.70 $59.80 82,320 12/31/2011 1.51% 1.84%
+ ABBC 01/26/2011 Susquehanna Bancshares, Inc. (SUSQ) All Stock $273 million $12.61 $12.42 65,700 09/30/2011 1.50% 2.64%
+ WL 11/01/2010 M & T Bank Corporation (MTB) All Stock $351 million $4.52 $4.455 938,049 06/30/2011 1.49% 4.72%
+ ASGR 03/03/2011 Valit�s Health Services, Inc. (N/A) All Cash $250 million $26.00 $25.65 676,172 06/30/2011 1.36% 4.33%
+ RHB 02/08/2011 Kindred Healthcare (KND) Cash Plus Stock $877 million $37.94 $37.46 154,490 06/30/2011 1.27% 4.03%
+ CNXT 02/23/2011 Golden Gate Capital (N/A) All Cash N/A $2.40 $2.37 513,960 06/30/2011 1.27% 4.02%
+ RVI 02/08/2011 DSW Inc (DSW) All Stock N/A $17.90 $17.68 247,355 06/30/2011 1.22% 3.88%
+ SVLF 02/03/2011 Cerberus Capital Management (N/A) All Cash $94 million $2.50 $2.47 76,901 04/15/2011 1.21% 11.37%
+ ACL 12/15/2010 Novartis (NVS) All Cash $12.9 billion $168.00 $166.03 1,070,991 06/30/2011

1.19%

3.77%
+ BUCY 11/15/2010 Caterpillar Inc (CAT) All Cash $8.6 billion $92.00 $90.95 1,240,435 06/30/2011 1.15% 3.66%
+ Q 04/22/2010 Century Link (CTL) All Stock $10.6 billion $6.72 $6.65 20,568,120 04/21/2011 1.09% 8.85%
+ EMS 02/14/2011 Clayton, Dubilier & Rice (N/A) All Cash $3 billion $64.00 $63.32 867,160 06/30/2011 1.07% 3.41%
+ TLGD 02/22/2011 Golden Gate Capital (N/A) All Cash $137 million $10.10 $10.00 178,836 06/30/2011 1.00% 3.17%
+ XETA 02/09/2011 PAETEC Holding Corp (PAET) All Cash $61 million $5.50 $5.45 108,216 04/30/2011 0.92% 6.20%
+ VCGH 11/10/2010 Company's chairman of the Board, CEO, President and COO (N/A) All Cash $37 million $2.25 $2.23 4,357 03/31/2011 0.90% 13.64%
+ PPD 01/31/2011 MidOcean Partners (N/A) All Cash $650 million $66.50 $65.97 32,507 07/31/2011 0.80% 2.01%
+ ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.91 1,354,091 03/31/2011 0.76% 11.49%
+ BEC 02/07/2011 Danaher (DHR) All Cash $6.8 billion $83.50 $82.91 1,178,215 06/30/2011 0.71% 2.26%
+ LDSH 11/17/2010 Allegheny Technologies (ATI) Cash Plus Stock $778 million $53.81 $53.43 31,693 03/31/2011 0.71% 10.81%
+ DNEX 12/13/2010 Thermo Fisher Scientific Inc. (TMO) All Cash $2.1 billion $118.50 $117.67 248,303 03/31/2011 0.71% 10.73%
+ ACV 09/27/2010 Unilever PLC (N/A) All Cash $3.7 billion $37.50 $37.25 554,373 03/31/2011 0.67% 10.21%
+ ATHR 01/05/2011 QUALCOMM Incorporated (QCOM) All Cash $3.1 billion $45.00 $44.73 1,322,637 06/30/2011 0.60% 1.92%
+ GIW 10/25/2010 Community Bank System (CBU) All Cash $101.8 million $9.50 $9.4432 9,900 03/31/2011 0.60% 9.15%
+ FTO 02/22/2011 Holly Corporation (HOC) All Stock $3 billion $27.81 $27.65 2,453,807 09/30/2011 0.59% 1.04%
+ PDE 02/07/2011 Ensco plc (ESV) Cash Plus Stock $7.31 billion $42.85 $42.60 4,619,904 06/30/2011 0.58% 1.85%
+ CPD 02/22/2011 Sun Pharmaceutical Industries ltd (N/A) All Cash N/A $5.25 $5.22 28,746 12/31/2011 0.57% 0.70%
+ LZR 02/07/2011 Universal Hospital Services (N/A) All Cash $70 million $8.46 $8.42 8,726 04/30/2011 0.48% 3.21%
+ CADE 10/06/2010 Community Bancorp LLC (N/A) All Cash $38 million $2.50 $2.49 22,591 03/31/2011 0.40% 6.11%
+ NOVA 01/21/2011 Surgery Partners (N/A) All Cash $214 million $13.25 $13.20 74,137 06/30/2011 0.38% 1.20%
+ MIGP 12/01/2010 United Fire & Casualty (UFCS) All Cash $191 million $28.25 $28.15 8,950 03/31/2011 0.36% 5.40%
+ CRXL 10/06/2010 Johnson & Johnson (JNJ) All Cash $2.41 billion $34.58 $34.46 14,633 03/31/2011 0.35% 5.33%
+ PLD 01/31/2011 AMB Property Corporation (AMB) All Stock N/A $15.91 $15.85 3,918,709 06/30/2011

0.35%

1.11%
+ JAS 12/23/2010 affiliate of Leonard Green & Partners LP (N/A) All Cash $1.6 billion $61.00 $60.81 289,947 03/31/2011 0.31% 4.75%
+ HRLY 02/07/2011 Kratos Defense & Security Solutions, Inc. (KTOS) All Cash $270 million $19.00 $18.95 120,653 03/31/2011 0.26% 4.01%
+ TMRK 01/27/2011 Verizon Communications Inc. (VZ) All Cash $1.4 billion $19.00 $18.95 459,998 03/31/2011

0.26%

4.01%
+ CPEX 01/04/2011 FCB I Holdings Inc. (N/A) All Cash N/A $27.25 $27.20 97,301 06/30/2011 0.18% 0.58%
+ SSCC 01/23/2011 Rock-Tenn Co. (RKT) Cash Plus Stock $3.5 billion $38.92 $38.86 469,395 06/30/2011 0.16% 0.49%
+ CGC 10/01/2010 Gammon Gold (GRS) Cash Plus Stock $288 million $5.45 $5.44 217,930 03/31/2011 0.13% 1.91%
+ DLM 11/25/2010 Kohlberg Kravis Roberts & Co (KKR) All Cash $4 billion $19.00 $18.99 8,349,443 03/31/2011 0.05% 0.80%
+ GXDX 01/24/2011 Novartis AG (NVS) All Cash $470 million $25.00 $24.99 111,463 06/30/2011

0.04%

0.13%
+ GTEC 03/03/2011 affiliate of Ares Management LLC (N/A) All Cash $315 million $24.25 $24.25 461,252 06/30/2011 0.00% 0.00%
+ ANSW 02/03/2011 AFCV Holdings LLC (N/A) All Cash $127 million $10.50 $10.50 71,549 06/30/2011 0.00% 0.00%
+ JCG 11/23/2010 private equity firms TPG Capital and Leonard Green & Partners (N/A) All Cash $3 billion $43.50 $43.53 2,610,580 03/31/2011

-0.07%

-1.05%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $44.38 $44.72 291,318 09/30/2011 -0.75% -1.32%
+ MCCC 11/15/2010 Chief Executive Rocco Commisso (N/A) All Cash $600 million $8.75 $8.84 2,212,673 06/30/2011 -1.02% -3.23%
+ CLDA 02/22/2011 Forest Laboratories Inc. (FRX) All Cash $1.2 billion $30.00 $30.31 249,396 06/30/2011 -1.02% -3.25%
+ PLA 01/10/2011 Icon Acquisition Holdings, L.P. (N/A) All Cash N/A $6.15 $6.22 581,930 03/31/2011 -1.13% -17.12%
+ RAE 01/18/2011 Vector Capital (N/A) All Cash N/A $1.75 $1.78 5,900 06/30/2011 -1.69% -5.35%
+ GENZ 02/16/2011 Sanofi-Aventis (SNY) All Cash $20.1 billion $74.00 $75.65 3,939,106 06/15/2011 -2.18% -7.96%
+ CASB 03/04/2011 Opus Bank (N/A) All Cash N/A $0.45 $0.53 169,772 06/30/2011 -15.09% -47.91%
+ LAB 02/17/2011 Cowen Group (COWN) All Stock $192.8 million N/A $4.04 204,562 07/31/2011 N/A N/A
+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A N/A $36.00 4,444,786 12/31/2011 N/A N/A
+ UAM 12/31/2010 CVS Caremark Corporation (CVS) All Cash $1.25 billion N/A $21.06 113,884 06/30/2011 N/A N/A
+ ZRAN 02/21/2011 CSR PLC (N/A) All Stock $679 million N/A $10.90 395,639 06/30/2011

N/A

N/A