Merger Arbitrage Mondays – August 15, 2011

  • August 14, 2011

Given the turmoil in global markets, it was not surprising to see that no new deals announced and only one deal closed last week. Several of the juicy spreads we saw last week in companies like optionsXpress (OXPS), Varian Semiconductor (VSEA) and Blackboard (BBBB) have narrowed considerably since then but plenty of other interesting deals still remain.

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 2011134
Total Number of Deals Not Completed in 20111
Total Number of Pending Deals
Cash Deals37
Stock Deals24
Stock & Cash Deals11
Total Number of Pending Deals72

Deal Updates:

  1. On August 12, 2011, Transatlantic Holdings (TRH) entered into a confidentiality agreement and discussions with National Indemnity Company, a unit of Warren Buffett’s Berkshire Hathaway, over a $3.2 billion takeover offer.
  2. On August 12, 2011, optionsXpress (OXPS) and Charles Schwab (SCHW) received the necessary regulatory approvals to complete their merger. The spread on this deal was 7.7% or 53% annualized when we published the Merger Arbitrage Mondays post last week.

Closed Deal:

  1. The acquisition of Nobel Learning Communities (NLCI) by an affiliate of Leeds Equity Partners on August 09, 2011

Top 10 deals with largest spreads:

GRAN04/27/2011FNB United Corp (FNBN)$1.45$0.77009/30/2011 88.47% 702.02%
FNDT06/27/2011S1 Corporation (SONE)$24.75$15.9612/31/2011 55.09% 145.70%
CRU05/05/2011Capital Product Partners L.P. (CPLP)$9.27$6.6009/30/2011 40.40% 320.57%
HRBN06/20/2011Tech Full Electric Company Limited (N/A)$24.00$17.9112/31/2011 34.00% 89.94%
MHS07/21/2011Express Scripts, Inc. (ESRX)$66.62$53.9406/30/2012 23.51% 26.81%
TAM01/19/2011LAN Airlines S.A. (LFL)$22.47$18.2512/31/2011 23.14% 61.20%
ABVA07/27/2011Eagle Bancorp, Inc. (EGBN)$5.12$4.6012/31/2011 11.40% 30.15%
ALTH07/20/2011Amag Pharmaceuticals (AMAG)$1.92$1.7412/31/2011 10.30% 27.23%
CSR04/20/2011Rightmark Holdings Limited (N/A)$6.50$5.9509/30/2011 9.24% 73.35%
CFSG05/20/2011Bain Capital Partners (N/A)$9.00$8.3111/15/2011 8.30% 32.94%

List of all pending deals:

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

Voluntary Disclosure: I have a long position in Blackboard (BBBB)