Merger Arbitrage Mondays – May 16, 2011

  • May 16, 2011

Merger activity decreased significantly last week with only two new deals announced and three closing.

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 201167
Total Number of Deals Not Completed in 20111
Total Number of Pending Deals
Cash Deals50
Stock Deals25
Stock & Cash Deals14
Special Conditions1
Total Number of Pending Deals90

New Deals:

  1. The acquisition of CKX, Inc. (CKXE) by an affiliate of Apollo Global Management for $511 million or $5.50 per share in cash. CKX owns the American Idol brand as well as rights to the name, image and likeness of Elvis Presley and Muhammad Ali. The company showed up on my radar following insider purchases by a director last November and I held the stock for a brief period.
  2. Alkermes (ALKS) has agreed to merge with Elan Drug Technologies, the drug formulation and manufacturing business unit of Elan Corporation (ELN), in a $960 million cash plus stock deal that will lead to the creation of a new company called Alkermes plc incorporated in Ireland. Elan will receive $500 million in cash and 31.9 million shares of the new Alkermes plc common stock. Existing shareholders of Alkermes, Inc. will receive one ordinary share of Alkermes plc in exchange for each share of Alkermes, Inc. they own in a taxable transaction.


Deal Updates:

  1. Silverleaf Resorts (SVLF) Shareholders Approve Merger Agreement. Deal expected to close on or about May 16, 2011
  2. Hertz Global Holdings (HTZmade a new bid for Dollar Thrifty Automotive Group (DTG), offering $2.24 billion.
  3. Community Health Systems (CYH) announced on Monday, May 09, 2011 that it was withdrawing its takeover offer for Tenet Healthcare (THC)


Closed Deals:

  1. The acquisition of Ladish Co. (LDSH) by Allegheny Technologies (ATI) on May 09, 2011
  2. The acquisition of Tollgrade Communications (TLGD) by Golden Gate Capital on May 12, 2011
  3. The acquisition of Alberto Culver (ACV) by Unilever PLC on May 12, 2011


Top 10 deals with largest spreads:

SymbolAnnounced
Date
Acquiring

Company

Closing

Price

Last
Price
Closing
Date
ProfitAnnu.
Profit
GRAN04/27/2011FNB United Corp (FNBN)$1.88$0.9609/30/2011

95.47%

254.35%
CSR04/20/2011Rightmark Holdings Limited (N/A)$6.50$5.3009/30/2011 22.64% 60.32%
TAM01/19/2011LAN Airlines S.A. (LFL)$26.02$21.7812/31/2011

19.46%

31.02%
TLCR06/07/2010Grifols (GRF.MC)$31.54$28.1906/30/2011 11.87% 96.29%
ID09/20/2010Safran (N/A)$12.00$10.7805/15/2011

11.32%

0.00%
HYC11/17/2010Verifone Systems (PAY)$10.84$9.9509/30/2011 8.97% 23.89%
SVVS04/27/2011CenturyLink (CTL)$42.32$39.2812/31/2011 7.75% 12.35%
CRU05/05/2011Capital Product Partners L.P. (CPLP)$15.58$14.4709/30/2011 7.65% 20.37%
GLBC04/11/2011Level 3 Communications (LVLT)$30.24$28.4112/31/2011 6.44% 10.27%
SHMR10/15/2010Essilor (N/A)$14.50$13.7706/30/2011 5.30% 43.00%
CEG04/28/2011Exelon Corporation (EXC)$38.82$36.8901/31/2012 5.23% 7.34%

List of all pending deals:

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