Merger Arbitrage Mondays – May 09, 2011

  • May 8, 2011

Merger activity decreased slightly last week with seven new deals announced and two closing. With four multi-billion dollar deals announced last week, according to Bloomberg 2011’s global M&A activity now amounts to a total to $843 billion, a 23 percent increase from a year earlier. Deal activity is expected to cross the $4 trillion record seen during the previous cycle that peaked in 2007.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2011 64
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 51
Stock Deals 25
Stock & Cash Deals 14
Special Conditions 1
Total Number of Pending Deals 91

New Deals:

  1. The acquisition of Cephalon (CEPH) by Teva Pharmaceutical Industries (TEVA) for $6.8 billion or $81.50 per share in cash.
  2. The acquisition of International Coal Group (ICO) by Arch Coal (ACI) for $3.4 billion or $14.60 per share in cash.
  3. The acquisition of Volcom (VLCM) by PPR for $607.5 million or $24.50 per share in cash.
  4. The acquisition of Varian Semiconductor Equipment Associates (VSEA) by Applied Materials (AMAT) for $4.9 billion or $63.00 per share in cash.
  5. The acquisition of Kendle International (KNDL) by INC Research for $232 million or $15.25 per share in cash.
  6. The acquisition of Crude Carriers (CRU) by Capital Product Partners (CPLP) for $281.3 million in an all stock deal where Crude Carriers shareholders will receive 1.56 CPLP common units for each Crude Carriers share.
  7. The acquisition of Warner Music Group (WMG) by Access Industries for $3.3 billion or $8.25 per share in cash.


Closed Deals:

  1. The acquisition of AirTran Holdings (AAI) by Southwest Airlines (LUV) on May 02, 2011
  2. The acquisition of NovaMed (NOVA) by Surgery Partners on May 04, 2011


Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring

Company

Closing

Price

Last
Price
Closing
Date
Profit Annu.
Profit
GRAN 04/27/2011 FNB United Corp (FNBN) $2.21 $1.1501 09/30/2011

91.80%

232.69%
CSR 04/20/2011 Rightmark Holdings Limited (N/A) $6.50 $5.36 09/30/2011 21.27% 53.91%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $25.79 $21.46 12/31/2011

20.20%

31.23%
TLCR 06/07/2010 Grifols (GRF.MC) $31.69 $27.66 06/30/2011 14.56% 102.20%
CRU 05/05/2011 Capital Product Partners L.P. (CPLP) $15.87 $14.38 12/31/2069 10.33% 0.18%
GLBC 04/11/2011 Level 3 Communications (LVLT) $26.40 $24.35 12/31/2010 8.42% 0.00%
ID 09/20/2010 Safran (N/A) $12.00 $11.21 05/15/2011 7.05% 428.71%
SVVS 04/27/2011 CenturyLink (CTL) $41.90 $39.21 12/31/2011 6.87% 10.63%
CEG 04/28/2011 Exelon Corporation (EXC) $38.38 $35.99 01/31/2012 6.64% 9.08%
CASB 03/04/2011 Opus Bank (N/A) $0.45 $0.4257 06/30/2011 5.71% 40.07%

List of all pending deals:

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