Merger Arbitrage Mondays – May 30, 2011

  • May 30, 2011

Merger activity decreased last week with three new deals announced and four 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 201178
Total Number of Deals Not Completed in 20111
Total Number of Pending Deals
Cash Deals47
Stock Deals23
Stock & Cash Deals16
Special Conditions1
Total Number of Pending Deals87

New Deals:

  1. The acquisition of FPIC Insurance Group (FPIC) by The Doctors Company for $362 million or $42.00 per share in cash.
  2. The acquisition of California Pizza Kitchen (CPKI) by Golden Gate Capital for $470 million or $18.50 per share in cash.
  3. The acquisition of Advanced Analogic Technologies (AATI) by Skyworks Solutions (SWKS) for $258.6 million in a cash plus stock deal, where Advanced Analogic Technologies shareholders will receive $3.68 in cash and 0.08725 of Skyworks Solutions common stock for each Advanced Analogic Technologies share held. The stock component of the price has a nominal value of $2.45 for a total value of $6.13. The cash portion will be adjusted higher or reduced at closing based on the stock portion to maintain a total value of $6.13. So for all practical purposes this could be considered an all cash deal.


Updated Deals:

  1. RAE Systems Inc. once again announces an amended merger agreement with Vector Capital increasing the purchase price to $2.25 per share in cash on May 25, 2011. This represents the fourth price over a two month period.


Closed Deals:

  1. The acquisition of Tasty Baking Company (TSTY) by Flowers Foods (FLO) on May 25, 2011
  2. The acquisition of Emergency Medical Services (EMS) by Onex Coropration on May 25, 2011
  3. The acquisition of Retail Ventures (RVI) by DSW Inc. (DSW) on May 26, 2011
  4. The acquisition of Atheros Communications (ATHR) by Qualcomm Incorporated (QCOM) on May 26, 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)$1.42$0.7509/30/2011

89.00%

264.11%
CSR04/20/2011Rightmark Holdings Limited (N/A)$6.50$4.9709/30/2011 30.78% 91.35%
TAM01/19/2011LAN Airlines S.A. (LFL)$26.18$22.1412/31/2011

18.25%

30.99%
CFSG05/20/2011Bain Capital Partners (N/A)$9.00$8.0911/15/2011 11.25% 24.29%
TLCR06/07/2010Grifols (GRF.MC)$31.84$28.8006/30/2011 10.56% 124.31%
SVVS04/27/2011CenturyLink (CTL)$42.50$39.3412/31/2011 8.03% 13.64%
CRU05/05/2011Capital Product Partners L.P. (CPLP)$14.31$13.2909/30/2011 7.64% 22.67%
ID09/20/2010Safran (N/A)$12.00$11.2506/15/2011

6.67%

152.08%
VRGY03/28/2011Advantest (ATE)$15.00$14.1112/31/2011 6.31% 10.71%
CASB03/04/2011Opus Bank (N/A)$0.45$0.426506/30/2011 5.51% 64.88%

List of all pending deals:

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