Merger Arbitrage Mondays – April 25, 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 2011 | 60 |
| Total Number of Deals Not Completed in 2011 | 1 |
| Total Number of Pending Deals |
| Cash Deals | 45 |
| Stock Deals | 21 |
| Stock & Cash Deals | 13 |
| Special Conditions | 1 |
| Total Number of Pending Deals | 80 |
New Deals:
- 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.
- The acquisition of DPL Inc. (DPL) by AES Corporation (AES) for $4.7 billion or $30 per share in cash.
- 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%.
- The acquisition of TradeStation Group (TRAD) by Japanese online brokerage Monex Group for $411 million or $9.75 per share in cash.
- The acquisition of CNA Surety Corporation (SUR) by CNA Financial Corporation (CNA) for $26.55 per share in cash.
Closed Deals:
- The acquisition of VCG Holding (VCGH) by the Company’s chairman of the Board, CEO, President and COO on April 18, 2011.
- The acquisition of Conexant Systems (CNXT) by Golden Gate Capital on April 19, 2011.
- The acquisition of NaviSite (NAVI) by Time Warner Cable (TWC) on April 21, 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) | $24.35 | $20.53 | 12/31/2011 | 18.58% |
27.13% |
| CSR | 04/20/2011 | Rightmark Holdings Limited (N/A) | $6.50 | $5.55 | 09/30/2011 |
17.12% |
39.54% |
| TLCR | 06/07/2010 | Grifols (GRF.MC) | $31.53 | $27.77 | 06/30/2011 | 13.54% |
74.87% |
| CASB | 03/04/2011 | Opus Bank (N/A) | $0.45 | $0.4136 | 06/30/2011 |
8.80% |
48.67% |
| GLBC | 04/11/2011 | Level 3 Communications (LVLT) | $26.08 | $24.36 | 12/31/2010 | 7.06% |
0.00% |
| HYC | 11/17/2010 | Verifone Systems (PAY) | $12.32 | $11.61 | 09/30/2011 |
6.12% |
14.15% |
| AAI | 09/27/2010 | Southwest Airlines (LUV) | $7.75 | $7.33 | 06/30/2011 |
5.73% |
31.69% |
| SHMR | 10/15/2010 | Essilor (N/A) | $14.50 | $13.80 | 06/30/2011 | 5.07% |
28.05% |
| DNBK | 01/20/2011 | People's United Financial Inc. (PBCT) | $23.00 | $22.05 | 06/30/2011 |
4.31% |
23.83% |
| VRGY | 03/28/2011 | Advantest (ATE) | $15.00 | $14.40 | 12/31/2069 |
4.17% |
0.07% |
List of all pending deals:
The list of all pending deals is only available to InsideArbitrage Premium and Plus members.
