Merger Arbitrage Mondays – April 25, 2011

  • April 24, 2011

Merger activity remained steady last week with five new deals announced and three 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 201160
Total Number of Deals Not Completed in 20111
Total Number of Pending Deals
Cash Deals45
Stock Deals21
Stock & Cash Deals13
Special Conditions1
Total Number of Pending Deals80

New Deals:

  1. The acquisition of Bancorp Rhode Island (BARI) by Brookline Bancorp (BRKL) in a cash and stock deal for $234 million, where Bancorp Rhode Island shareholders will receive either $48.25 in cash, or 4.686 shares of Brookline Bancorp common stock or a combination thereof, with total cash consideration of approximately $121 million and total stock consideration of approximately 11.0 million shares of Brookline Bancorp common stock. Elections will be subject to allocation procedures that are intended to ensure that approximately 50% of the outstanding shares of Bancorp Rhode Island common stock will be converted into Brookline Bancorp common stock. To stay on the conservative side we are treating this transaction as an all stock deal in our Merger Arbitrage tool.
  2. The acquisition of DPL Inc. (DPL) by AES Corporation (AES) for $4.7 billion or $30 per share in cash.
  3. The acquisition of China Security & Surveillance Technology (CSR) by Rightmark Holdings Limited for $584.2 million or $6.50 per share in cash. CSR has taken a hit in recent months along with other Chinese small cap stocks and it is interesting to note that the spread of the deal is unusually high at 17.12%.
  4. The acquisition of TradeStation Group (TRAD) by Japanese online brokerage Monex Group for $411 million or $9.75 per share in cash.
  5. The acquisition of CNA Surety Corporation (SUR) by CNA Financial Corporation (CNA) for $26.55 per share in cash.

Closed Deals:

  1. The acquisition of  VCG Holding (VCGH) by the Company’s chairman of the Board, CEO, President and COO on April 18, 2011.
  2. The acquisition of Conexant Systems (CNXT) by Golden Gate Capital on April 19, 2011.
  3. The acquisition of NaviSite (NAVI) by Time Warner Cable (TWC) on April 21, 2011.

Top 10 deals with largest spreads:





TAM01/19/2011LAN Airlines S.A. (LFL)$24.35$20.5312/31/2011


CSR04/20/2011Rightmark Holdings Limited (N/A)$6.50$5.5509/30/2011 17.12% 39.54%
TLCR06/07/2010Grifols (GRF.MC)$31.53$27.7706/30/2011


CASB03/04/2011Opus Bank (N/A)$0.45$0.413606/30/2011 8.80% 48.67%
GLBC04/11/2011Level 3 Communications (LVLT)$26.08$24.3612/31/2010


HYC11/17/2010Verifone Systems (PAY)$12.32$11.6109/30/2011 6.12% 14.15%
AAI09/27/2010Southwest Airlines (LUV)$7.75$7.3306/30/2011 5.73% 31.69%
SHMR10/15/2010Essilor (N/A)$14.50$13.8006/30/2011


DNBK01/20/2011People's United Financial Inc. (PBCT)$23.00$22.0506/30/2011 4.31% 23.83%
VRGY03/28/2011Advantest (ATE)$15.00$14.4012/31/2069 4.17% 0.07%

List of all pending deals:

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