Merger Arbitrage Mondays – July 11, 2011

Merger activity decreased last week with three new all-cash 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 2011 121
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 34
Stock Deals 20
Stock & Cash Deals 12
Total Number of Pending Deals 66

New Deals:

  1. The acquisition of Ameron International Corporation (AMN) by National Oilwell Varco (NOV) for $772 million or $85.00 per share in cash.
  2. The acquisition of Immucor (BLUD) by TPG Capital for $1.973 billion or $27.00 per share in cash.
  3. The acquisition of APAC Customer Services (APAC) by One Equity Partners for $470 million or $8.55 per share in cash.


Updated Deals:

  1. On July 05, 2011, Energy Transfer Equity (ETE) and Southern Union Company (SUG) announced that they have entered into an amended and restated merger agreement under which ETE will acquire SUG for $8.9 billion. Under the terms of the revised agreement, which has been unanimously approved by the boards of directors of both companies, SUG shareholders can elect to exchange their common shares for $40.00 of cash or 0.903 ETE common units. The maximum cash component is 60% of the aggregate consideration and the common unit component can fluctuate between 40% and 50%. Elections in excess of either the cash or common unit limits will be subject to proration.
  2. On July 08, 2011, Energy Transfer Equity LP (ETE) said it was considering a sale of its acquisition target Southern Union’s (SUG) gathering and processing assets to its subsidiaries in a bid to deleverage its balance sheet following the deal.


Closed Deals:

  1. The acquisition of Marshall & Ilsley Corp. (MI) by the Bank of Montreal (BMO) on July 05, 2011
  2. The acquisition of Lawson Software (LWSN) by an affiliate of Golden Gate Capital and Infor on July 07, 2011
  3. The acquisition of California Pizza Kitchen (CPKI) by Golden Gate Capital on July 07, 2011
  4. The acquisition of Bucyrus International (BUCY) by Caterpillar (CAT) on July 08, 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) $1.69 $0.90 09/30/2011

87.50%

394.29%
HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) $24.00 $16.91 12/31/2011 41.93% 88.46%
CSR 04/20/2011 Rightmark Holdings Limited (N/A) $6.50 $5.21 09/30/2011 24.76% 111.57%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $27.40 $23.47 12/31/2011

16.73%

35.29%
CFSG 05/20/2011 Bain Capital Partners (N/A) $9.00 $8.08 11/15/2011 11.39% 32.72%
ZRAN 02/21/2011 CSR PLC (CSR.L) $9.28 $8.57 09/30/2011 8.31% 37.46%
FTLK 05/31/2011 Fortress Group Limited (N/A) $7.20 $6.70 09/30/2011

7.46%

33.63%
CRU 05/05/2011 Capital Product Partners L.P. (CPLP) $14.35 $13.53 09/30/2011 6.08% 27.38%
SVVS 04/27/2011 CenturyLink (CTL) $41.71 $39.81 12/31/2011 4.77% 10.07%
CEG 04/28/2011 Exelon Corporation (EXC) $40.58 $38.82 01/31/2012 4.52% 8.09%

List of all pending deals:

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


  Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing

Date

Profit Annu.
Profit
+ GRAN 04/27/2011 FNB United Corp (FNBN) All Stock N/A $1.69 $0.90 13,420 09/30/2011 87.50% 394.29%
+ HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) All Cash N/A $24.00 $16.91 1,551,676 12/31/2011 41.93% 88.46%
+ CSR 04/20/2011 Rightmark Holdings Limited (N/A) All Cash $583.2 million $6.50 $5.21 460,611 09/30/2011 24.76% 111.57%
+ TAM 01/19/2011 LAN Airlines S.A. (LFL) All Stock N/A $27.40 $23.47 833,619 12/31/2011 16.73% 35.29%
+ CFSG 05/20/2011 Bain Capital Partners (N/A) All Cash $265.5 million $9.00 $8.08 41,791 11/15/2011 11.39% 32.72%
+ ZRAN 02/21/2011 CSR PLC (CSR.L) Cash Plus Stock $484 million $9.28 $8.57 498,281 09/30/2011 8.31% 37.46%
+ FTLK 05/31/2011 Fortress Group Limited (N/A) All Cash $443 million $7.20 $6.70 78,297 09/30/2011 7.46% 33.63%
+ CRU 05/05/2011 Capital Product Partners L.P. (CPLP) All Stock $281.3 million $14.35 $13.53 18,726 09/30/2011

6.08%

27.38%
+ SVVS 04/27/2011 CenturyLink (CTL) Cash Plus Stock $2.5 billion $41.71 $39.81 543,372 12/31/2011 4.77% 10.07%
+ CEG 04/28/2011 Exelon Corporation (EXC) All Stock $7.9 billion $40.58 $38.82 1,273,520 01/31/2012 4.52% 8.09%
+ PGN 01/10/2011 Duke Energy Corporation (DUK) All Stock $13.7 billion $49.87 $48.08 1,100,924 12/31/2011 3.73% 7.87%
+ CNU 06/27/2011 Metropolitan Health Networks (MDF) Cash Plus Stock $416 million $6.44 $6.22 406,364 09/30/2011

3.58%

16.12%
+ HYC 11/17/2010 Verifone Systems (PAY) All Stock $485 million $10.55 $10.21 833,465 09/30/2011 3.33% 15.01%
+ PVSA 06/15/2011 F.N.B. Corporation (FNB) All Stock $130 million $22.63 $21.94 18,604 12/31/2011 3.14% 6.63%
+ VSEA 05/04/2011 Applied Materials Inc. (AMAT) All Cash $4.9 billion $63.00 $61.53 1,147,202 09/30/2011

2.39%

10.77%
+ SERV 06/27/2011 Scientific Conservation (N/A) All Cash $13 million $3.50 $3.42 53,225 10/31/2011 2.34% 7.62%
+ ID 09/20/2010 Safran (N/A) All Cash $1.1 billion $12.00 $11.75 1,546,540 07/31/2011 2.13% 38.83%
+ TOBC 06/20/2011 Susquehanna Bancshares (SUSQ) All Stock $343 million $28.03 $27.50 65,969 03/31/2012 1.94% 2.69%
+ TRH 06/12/2011 Allied World Assurance Company Holdings (AWH) All Stock $3.2 billion $50.34 $49.38 449,929 12/31/2011 1.94% 4.08%
+ STBC 04/28/2011 Valley National Bancorp (VLY) All Stock $222 million $13.92 $13.66 14,806 10/31/2011 1.90% 6.20%
+ BBBB 07/01/2011 Providence Equity Partners (N/A) All Cash $1.64 billion $45.00 $44.25 1,404,581 12/31/2011 1.69% 3.58%
+ LOOP 04/27/2011 CoStar Group (CSGP) Cash Plus Stock $860 million $18.68 $18.37 321,536 12/31/2011

1.68%

3.54%
+ CEPH 05/02/2011 Teva Pharmaceutical Industries Ltd. (TEVA) All Cash $6.8 billion $81.50 $80.18 1,165,412 09/30/2011 1.65% 7.42%
+ BJ 06/29/2011 affiliates of Leonard Green & Partners (N/A) All Cash $2.8 billion $51.25 $50.43 2,074,185 12/31/2011 1.63% 3.43%
+ APAC 07/07/2011 One Equity Partners (N/A) All Cash $470 million $8.55 $8.44 2,712,164 12/31/2011 1.30% 2.75%
+ GLBC 04/11/2011 Level 3 Communications (LVLT) All Stock $3.00 billion $41.44 $40.94 410,024 12/31/2011 1.22% 2.58%
+ NLCI 05/18/2011 Leeds Equity Partners (N/A) All Cash $149 million $11.75 $11.61 900 11/30/2011 1.21% 3.10%
+ ORCH 04/06/2011 Laboratory Corporation of America Holdings (LH) All Cash $85.4 million $2.80 $2.77 12,157 07/31/2011 1.08% 19.77%
+ PNNW 11/12/2010 City of Nashua (N/A) All Cash $138 million $29.00 $28.69 6,402 09/30/2011 1.08% 4.87%
+ NSTC 06/10/2011 affiliate of Citi Venture Capital International (CVCI) (N/A) All Cash $307 million $7.75 $7.68 184,449 10/31/2011 0.91% 2.97%
+ NSM 04/05/2011 Texas Instruments Incorporated (TXN) All Cash $6.5 billion $25.00 $24.78 3,621,593 01/31/2012 0.89% 1.59%
+ TGE 03/21/2011 Dawson Geophysical Company (DWSN) All Stock $157 million $6.63 $6.57 21,284 08/15/2011 0.84% 8.75%
+ SMOD 04/26/2011 Silver Lake Partners and Silver Lake Sumeru (N/A) All Cash $645 million $9.25 $9.18 488,534 09/30/2011 0.76% 3.44%
+ LEGC 12/21/2010 Berkshire Hills Bancorp (BHLB) Cash Plus Stock $108 million $14.22 $14.13 4,500 07/31/2011

0.62%

11.34%
+ DEP 02/23/2011 Enterprise Products Partners (EPD) All Stock N/A $43.75 $43.50 31,002 09/30/2011 0.58% 2.62%
+ GAS 12/07/2010 AGL Resources Inc. (AGL) Cash Plus Stock $2.4 billion $56.60 $56.28 252,057 09/30/2011

0.56%

2.54%
+ GRM 06/17/2011 Reynolds Group Holdings (N/A) All Cash $4.5 billion $25.50 $25.36 334,940 12/31/2011 0.55% 1.16%
+ ABBC 01/26/2011 Susquehanna Bancshares, Inc. (SUSQ) All Stock $273 million $10.67 $10.61 15,993 09/30/2011 0.52% 2.36%
+ OXPS 03/21/2011 Charles Schwab Corp. (SCHW) All Stock $1 billion $15.91 $15.84 1,143,204 09/30/2011 0.45% 2.05%
+ FPIC 05/24/2011 The Doctors Company (N/A) All Cash $362 million $42.00 $41.81 27,374 12/31/2011 0.45% 0.96%
+ SRX 04/01/2011 affiliate of Providence Equity Partners (N/A) All Cash $1.88 billion $31.25 $31.12 1,242,410 09/30/2011 0.42% 1.88%
+ LZ 03/14/2011 Berkshire Hathaway (N/A) All Cash $9.7 billion $135.00 $134.47 976,879 09/30/2011 0.39% 1.78%
+ TLVT 06/01/2011 Schneider Electric (N/A) All Cash $2.02 billion $40.00 $39.85 398,417 09/30/2011 0.38% 1.70%
+ NST 10/18/2010 Northeast Utilities (NU) All Stock $4.17 billion $46.33 $46.20 133,088 09/30/2011 0.27% 1.24%
+ BLUD 07/05/2011 TPG Capital (N/A) All Cash $1.973 billion $27.00 $26.93 3,603,912 12/31/2011 0.26% 0.55%
+ WMG 05/06/2011 Access Industries (N/A) All Cash $3.3 billion $8.25 $8.23 980,718 09/30/2011 0.24% 1.10%
+ GSLA 03/30/2011 Home Bancorp (HBCP) All Cash $26.2 million $21.00 $20.95 5,000 09/30/2011 0.24% 1.08%
+ MDMD 06/16/2011 DG FastChannel (DGIT) All Cash $517 million $22.00 $21.96 95,381 09/30/2011 0.18% 0.82%
+ ISYS 05/16/2011 Kratos Defense & Security Solutions, Inc. (KTOS) Cash Plus Stock $266 million $12.22 $12.20 66,105 09/30/2011

0.17%

0.76%
+ ELMG 06/13/2011 Honeywell International (HON) All Cash $491 million $33.00 $32.95 187,454 09/30/2011 0.15% 0.68%
+ SBIB 01/18/2011 Comerica Incorporated (CMA) All Stock $1.027 billion $7.99 $7.98 401,891 06/30/2011 0.14% 0.00%
+ PRM 05/16/2011 affiliates of TPG Capital (N/A) All Cash $525 million $7.10 $7.09 57,803 09/30/2011 0.14% 0.64%
+ KNDL 05/04/2011 INC Research (N/A) All Cash $232 million $15.25 $15.23 191,828 09/30/2011 0.13% 0.59%
+ TBL 06/13/2011 VF Corp (VFC) All Cash $2 billion $43.00 $42.98 1,500,839 09/30/2011 0.05% 0.21%
+ CLFC 12/09/2010 Nara Bancorp Inc. (NARA) All Stock $285.7 million $6.55 $6.55 300,420 09/30/2011 -0.04% -0.17%
+ AMN 07/05/2011 National Oilwell Varco, Inc. (NOV) All Cash $772 million $85.00 $85.24 303,305 12/31/2011 -0.28% -0.59%
+ HNB 06/02/2011 BankUnited Inc. (BKU) Cash Plus Stock $71.4 million $3.95 $4.00 3,000 12/31/2011 -1.26% -2.65%
+ DPL 04/19/2011 AES Corporation (AES) All Cash $4.7 billion $30.00 $30.39 412,560 01/31/2012 -1.28% -2.30%
+ GRB 06/13/2011 Vector Capital (N/A) All Cash $281.8 million $11.00 $11.18 106,700 11/15/2011 -1.61% -4.63%
+ BARI 04/20/2011 Brookline Bancorp (BRKL) Cash Plus Stock $234 million $43.91 $45.07 10,756 12/31/2011 -2.58% -5.44%
+ CV 05/30/2011 Fortis (N/A) All Cash $700 million $35.10 $36.12 50,860 05/31/2012 -2.82% -3.17%
+ SUG 06/16/2011 Energy Transfer Equity (ETE) All Stock $7.9 billion $40.64 $42.15 3,322,909 03/31/2012

-3.59%

-4.97%
+ AATI 05/26/2011 Skyworks Solutions, Inc. (SWKS) Cash Plus Stock $258.6 million $5.84 $6.06 122,599 09/30/2011

-3.68%

-16.60%
+ DTG 04/26/2010 Avis (CAR) Cash Plus Stock $1.56 billion $57.24 $73.95 109,834 12/31/2011 -22.60% -47.67%
+ NYX 02/15/2011 Deutsche Boerse (N/A) All Stock N/A $13.93 $35.44 2,390,721 12/31/2011 -60.71% -128.08%
+ ALKS 05/09/2011 Elan Corporation (ELAN) Cash Plus Stock $960 million N/A $19.52 1,613,485 09/30/2011

N/A

N/A

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