Merger Arbitrage Mondays – June 20, 2011

  • June 20, 2011

Merger activity increased last week with seven new deals announced and six closing. This spike in deals announced follows a temporary lull in the week prior where no new deals were announced.

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 201199
Total Number of Deals Not Completed in 20111
Total Number of Pending Deals
Cash Deals44
Stock Deals22
Stock & Cash Deals11
Special Conditions1
Total Number of Pending Deals78

New Deals:

  1. A merger of equals transaction between Transatlantic Holdings (TRH) and Allied World Assurance Company Holdings (AWH) in an all stock deal, where Transatlantic Holdings shareholders will receive 0.88 of Allied share for each Transatlantic share to form TransAllied Group Holdings AG.
  2. The acquisition of Timberland (TBL) by VF Corporation (VFC) for $2 billion or $43 per share in cash.
  3. The acquisition of Gerber Scientific (GRB) by Vector Capital for $281.8 million or $11 per share in cash. Shareholders will also receive a non-transferable right to receive contingent cash payments at future times, if recoveries are made pursuant to certain litigation claims in respect of U.S. Patent 5,537,135 (a computerized “print to cut” technology patent).
  4. The acquisition of EMS Technologies (ELMG) by Honeywell (HON) for $491 million or $33 per share in cash.
  5. The acquisition of Southern Union Company (SUG) by Energy Transfer Equity (ETE) for $7.9 billion or $33 per share in series B units of ETE. These series B units are expected to list on the NYSE and will have an annualized distribution yield of 8.25%. ETE has the option to redeem the Series B Units at any time after the closing of the transaction.
  6. The acquisition of MediaMind Technologies (MDMD) by DG FastChannel (DGIT) for $414 million or $22 per share in cash.
  7. The acquisition of Parkvale Financial Corporation (PVSA) by F.N.B. Corporation (FNB) for $130 million in an all-stock deal, where Parkvale Financial Corporation’s shareholders will receive 2.178 shares of F.N.B. Corporation common stock for each share of Parkvale Financial Corporation stock.


Updated Deals:

  1. On June 17, 2011, Graham Packaging Company (GRM) terminated its merger agreement with Silgan Holdings (SLGN) and agreed to be acquired by Reynolds Group Holdings for $4.5 billion or $25.50 per share in cash. The deal is expected to close in the second half of this year.
  2. On June 17, 2011, CSR agreed to reduced price of $484 million to buy Zoran Corporation (ZRAN). Under the Revised Terms, Zoran shareholders will receive US$6.26 in cash and 0.589 ordinary shares of CSR in the form of American Depositary Shares (each an “ADS”, and each ADS representing four ordinary shares) for each share of Zoran common stock held.


Closed Deals:

  1. The acquisition of Tomotherapy (TOMO) by Accuray Incorporated (ARAY) on June 13, 2011
  2. The acquisition of Animal Health International (AHII) by Charlesbank Capital Partners on June 13, 2011
  3. The acquisition of International Coal Group (ICO) by Arch Coal (ACI) on June 14, 2011
  4. The acquisition of Caraco Pharmaceutical Laboratories (CPD) by Sun Pharmaceutical Industries on June 14, 2011
  5. The acquisition of RAE Systems (RAE) by Vector Capital on June 16, 2011
  6. The acquisition of Vital Images (VTAL) by Toshiba Medical Systems Corporation on June 16, 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)$1.49$0.8309/30/2011

78.92%

282.39%
CSR04/20/2011Rightmark Holdings Limited (N/A)$6.50$4.4609/30/2011 45.74% 163.68%
TAM01/19/2011LAN Airlines S.A. (LFL)$24.28$20.0712/31/2011

20.99%

39.48%
CFSG05/20/2011Bain Capital Partners (N/A)$9.00$7.6611/15/2011 17.49% 43.14%
ZRAN02/21/2011CSR PLC (CSR.L)$9.24$8.2906/30/2011 11.44% 417.70%
DNBK01/20/2011People's United Financial Inc. (PBCT)$23.00$21.2406/30/2011 8.29% 302.45%
FTLK05/31/2011 Fortress Group Limited (N/A)$7.20$6.6909/30/2011 7.62% 27.28%
CRU05/05/2011Capital Product Partners L.P. (CPLP)$12.79$11.9909/30/2011 6.69% 23.94%
PVSA06/15/2011F.N.B. Corporation (FNB)$21.85$20.5612/31/2011

6.25%

11.76%
CEG04/28/2011Exelon Corporation (EXC)$38.82$36.6901/31/2012 5.80% 9.41%

List of all pending deals:

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