Merger Arbitrage Mondays – April 18, 2011

  • April 17, 2011

Merger activity remained steady last week with five new deals announced and five 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 48
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 49
Stock Deals 22
Stock & Cash Deals 14
Special Conditions 1
Total Number of Pending Deals 86

New Deals:

  1. The acquisition of Global Crossing Limited (GLBC) by Level 3 Communications (LVLT) for $3 billion in an all stock deal, where Global Crossing shareholders will receive 16 shares of Level 3 common stock for each share of Global Crossing common stock or preferred stock that is owned at closing.
  2. The acquisition of American Medical Systems Holdings (AMMD) by Endo Pharmaceuticals (ENDP) for $2.9 billion or $30 per share in cash.
  3. The acquisition of Tasty Baking Company (TSTY) by Flower Foods (FLO) for $165 million or $4 per share in cash.
  4. The acquisition of Graham Packaging Company (GRM) by Silgan Holdings (SLGN) for $4.1 billion or $19.56 per share in a cash plus stock deal. Graham shareholders will receive $4.75 in cash and 0.402 shares of Silgan common stock.
  5. The acquisition of Bronco Drilling Company (BRNC) by Chesapeake (CHK) for $315 million or $11 per share in cash.


Closed Deals:

  1. The acquisition of Wilber Corporation (GIW) by Community Bank System (CBU) on April 11, 2011.
  2. The acquisition of NGAS Resources (NGAS) by Magnum Hunter Resources (MHR) on April 13, 2011.
  3. The acquisition of Clinical Data (CLDA) by Forest Laboratories (FRX) on April 12, 2011.
  4. The acquisition of Answers.com (ANSW) by AFCV Holdings on April 14, 2011.
  5. The acquisition of Tongjitang Chinese Medicines (TCM) by Hanmax Investment Ltd. on April 15, 2011.


Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring

Company

Closing

Price

Last
Price
Closing
Date
Profit Annu.
Profit
TAM 01/19/2011 LAN Airlines S.A. (LFL) $23.44 $19.43 12/31/2011

20.62%

29.28%
CASB 03/04/2011 Opus Bank (N/A) $0.45 $0.395 06/30/2011 13.92% 69.62%
TLCR 06/07/2010 Grifols (GRF.MC) $31.38 $28.19 06/30/2011

11.30%

56.52%
GLBC 04/11/2011 Level 3 Communications (LVLT) $27.60 $25.78 12/31/2010 7.06% 0.00%
SHMR 10/15/2010 Essilor (N/A) $14.50 $13.66 06/30/2011 6.15% 30.75%
DNBK 01/20/2011 People's United Financial Inc. (PBCT) $23.00 $21.73 06/30/2011 5.84% 29.22%
HYC 11/17/2010 Verifone Systems (PAY) $12.37 $11.69 09/30/2011 5.79% 12.81%
VRGY 03/28/2011 Advantest (ATE) $15.00 $14.26 12/31/2069 5.19% 0.09%
AAI 09/27/2010 Southwest Airlines (LUV) $7.75 $7.37 06/30/2011 5.16% 25.78%
TGE 03/21/2011 Dawson Geophysical Company (DWSN) $7.66 $7.29 08/15/2011

5.14%

15.77%
ZRAN 02/21/2011 CSR PLC (N/A) N/A $10.19 06/30/2011 N/A N/A

List of all pending deals:

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