Merger Arbitrage Mondays – July 18, 2011

Merger activity rebounded again with six 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 2011 125
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 36
Stock Deals 21
Stock & Cash Deals 11
Total Number of Pending Deals 68

New Deals:

  1. The acquisition of Arch Chemicals (ARJ) by Lonza Group Ltd. for $1.4 billion or $47.20 per share in cash.
  2. The acquisition of Encore Energy Partners (ENP) by Vanguard Natural Resources (VNR) for $545 million in an all stock deal, where Encore’s public unitholders would receive 0.75 Vanguard common units in exchange for each Encore common unit they own.
  3. The acquisition of Radiant Systems (RADS) by NCR Corporation (NCR) for $1.2 billion or $28.00 per share in cash.
  4. The acquisition of Conmed Healthcare Management (CONM) by Ayelet Investments for $57.2 million or $3.85 per share in cash.
  5. The acquisition of Kinetic Concepts (KCI) by a consortium of funds advised in part by Apax Partners for $6.3 billion or $68.50 per share in cash.
  6. The acquisition of Petrohawk Energy (HK) by BHP Billiton (BHP) for $15.1 billion (including the assumption of debt) or $38.75/share in cash.
  7. Carl Icahn makes a $76.50 per share bid for the rest of Clorox (CLX) that he doesn’t already own. Since the company has not yet acted upon this offer, we have not included it in our database and this deal will not show up in the merger arbitrage tool.


Updated Deals:

  1. On July 12, 2011, Central Vermont Public Services (CV) terminated its previous agreement with Fortis after deeming “superior” the offer from Gaz Métro for $702 million or $35.25 per share in cash.
  2. On July 13, 2011, Graham Packaging Co. (GRM) bondholders plan to reject the company’s offer to buy back or change terms of outstanding debt before its $4.5 billion takeover by Reynolds Group Holdings Ltd.
  3. On July 13, 2011, Transatlantic Holdings (TRH) said that it received an unsolicited buyout offer at a 12.1% premium from Validus Holdings (VR), a month after Transatlantic announced a planned merger with Allied World Assurance Co. (AWH)
  4. On July 14, 2011, Southern Union Company (SUGconfirmed receipt of a revised proposal by The Williams Companies, Inc. (WMB) to acquire all of the outstanding shares of Southern Union for $44.00 per share in cash.
  5. On July 11, 2011, Hertz (HTZ) extended its offer to buy Dollar Thrifty (DTG) until August 5 from July 8.


Closed Deals:

  1. The acquisition of Kendle International (KNDL) by INC Research on July 12, 2011.
  2. The acquisition of PRIMEDIA (PRM) by TPG Capital on July 13, 2011.
  3. The acquisition of Savvis (SVVS) by CenturyLink (CTL) on July 15, 2011.
  4. The acquisition of GS Financial Corp (GSLA) by Home Bancorp (HBCP) on July 15, 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) $1.49 $0.87 09/30/2011

71.08%

350.59%
HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) $24.00 $18.78 12/31/2011 27.80% 61.12%
CSR 04/20/2011 Rightmark Holdings Limited (N/A) $6.50 $5.30 09/30/2011 22.64% 111.68%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $26.42 $22.98 12/31/2011

14.99%

32.95%
CFSG 05/20/2011 Bain Capital Partners (N/A) $9.00 $8.33 11/15/2011 8.04% 24.46%
FTLK 05/31/2011 Fortress Group Limited (N/A) $7.20 $6.68 09/30/2011 7.78% 38.40%
ZRAN 02/21/2011 CSR PLC (CSR.L) $9.03 $8.46 09/30/2011 6.79% 33.48%
CRU 05/05/2011 Capital Product Partners L.P. (CPLP) $13.85 $13.27 09/30/2011

4.39%

21.66%
CEG 04/28/2011 Exelon Corporation (EXC) $40.33 $38.75 01/31/2012 4.09% 7.57%
HYC 11/17/2010 Verifone Systems (PAY) $9.83 $9.45 09/30/2011 4.05% 19.96%

List of all pending deals:

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


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