Merger Arbitrage Mondays – July 4, 2011

Merger activity increased last week with four new deals announced and twelve 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 116
Total Number of Deals Not Completed in 2011 1
Total Number of Pending Deals
Cash Deals 36
Stock Deals 20
Stock & Cash Deals 12
Total Number of Pending Deals 62

New Deals:

  1. The acquisition of Servidyne (SERV) by Scientific Conservation for $13 million or $3.50 per share in cash.
  2. The acquisition of Continucare (CNU) by Metropolitan Health Networks (MDF) for $416 million in a cash and stock transaction, where shareholders of Continucare will receive $6.25 per share in cash, and 0.0414 of a share of Metropolitan common stock for each share of Continucare common stock. The exact value of the consideration per share will depend on Metropolitan’s share price at closing. Metropolitan expects to issue approximately 2.7 million shares in connection with the transaction.
  3. The acquisition of BJ’s Wholesale Club (BJ) by affiliates of Leonard Green & Partners for $2.8 billion or $51.25 per share in cash.
  4. The acquisition of Blackboard (BBBB) by Providence Equity Partners for $1.64 billion or $45.00 per share in cash.


Closed Deals:

  1. The acquisition of Orthovita (VITA) by Stryker Corporation (SYK) on June 27, 2011
  2. The acquisition of LaBarge (LB) by Ducommun (DCO) on June 28, 2011
  3. The acquisition of LaBranche & Co. (LAB) by Cowen Group (COWN) on June 29, 2011
  4. The acquisition of Beckman Coulter (BEC) by Danaher Corporation (DHR) on June 30, 2011
  5. The acquisition of Pre-Paid Legal Services (PPD) by MidOcean Partners on June 30, 2011
  6. The acquisition of Rural/Metro Corporation (RURL) by Warburg Pincus on June 30, 2011
  7. The acquisition of Cascade Financial Corporation (CASB) by Opus Bank on July 01, 2011
  8. The acquisition of Danvers Bancorp (DNBK) by People’s United Financial (PBCT) on July 01, 2011
  9. The acquisition of Frontier Oil Corporation (FTO) by HollyFrontier Corporation (HFC) on July 01, 2011
  10. The acquisition of Nationwide Health Properties (NHP) by Ventad (VTR) on July 01, 2011
  11. The acquisition of K-Sea Transportation Partners (KSP) by Kirby Corporation (KEX) on July 01, 2011
  12. The acquisition of Shamir Optical Industry (SHMR) by Essilor on July 01, 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) $1.45 $0.92 09/30/2011

57.74%

239.51%
HRBN 06/20/2011 Tech Full Electric Company Limited (N/A) $24.00 $16.31 12/31/2011 47.15% 95.61%
CSR 04/20/2011 Rightmark Holdings Limited (N/A) $6.50 $5.29 09/30/2011 22.87% 94.87%
TAM 01/19/2011 LAN Airlines S.A. (LFL) $25.95 $22.27 12/31/2011

16.51%

33.48%
CFSG 05/20/2011 Bain Capital Partners (N/A) $9.00 $7.85 11/15/2011 14.65% 39.90%
ZRAN 02/21/2011 CSR PLC (CSR.L) $9.29 $8.56 09/30/2011 8.50% 35.26%
FTLK 05/31/2011 Fortress Group Limited (N/A) $7.20 $6.70 09/30/2011

7.46%

30.95%
SVVS 04/27/2011 CenturyLink (CTL) $41.92 $39.62 12/31/2011 5.80% 11.77%
PVSA 06/15/2011 F.N.B. Corporation (FNB) $22.89 $21.70 12/31/2011 5.49% 11.13%
ALKS 05/09/2011 Elan Corporation (ELAN) N/A $19.04 09/30/2011 N/A N/A

List of all pending deals:

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


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